#Nigerians, National Patriots, others, Appeal for Presidential Intervention on Illegal Refinery Issue

Transforming Illegal Refineries into Cooperative Crude Processing Hubs: A Sustainable Solution for the Niger Delta

For decades, Nigeria has grappled with the challenge of illegal oil refineries, particularly in the Niger Delta region. These makeshift refineries, operated by unemployed youths and struggling locals, have become a double-edged sword—providing economic survival for many while simultaneously fueling environmental degradation, economic losses, and security threats. Despite numerous crackdowns by the government, the problem persists, highlighting the need for a more pragmatic and sustainable approach.

Rather than treating illegal refiners solely as criminals, there is an opportunity to convert their activities into a structured and lawful economic enterprise. Establishing community-based cooperative crude processing hubs could provide a legitimate means of livelihood for these individuals while ensuring that refined products meet safety and environmental standards. This approach would not only create jobs but also help curb oil theft, pipeline vandalism, and the environmental destruction caused by unregulated refining.

A New Approach: Cooperative-Based Crude Processing Hubs

A practical solution lies in the creation of small-scale modular refineries, operated by cooperative unions of former illegal refiners and unemployed youths. These refineries, supported by the government and private investors, would function under strict regulatory oversight, ensuring that crude oil is processed efficiently and safely.

Rather than allowing crude theft to persist, the government could allocate a controlled quota of crude oil to these cooperatives, enabling them to refine legally under agreed conditions. This system would create a traceable and accountable supply chain, eliminating the need for illegal bunkering and ensuring that refining activities benefit both the local economy and the nation as a whole.

Ensuring Quality and Local Benefits

To maximize the benefits of this initiative, the refined products must meet regulatory standards before being distributed. The primary focus should be local consumption, providing fuel for:

Water transportation, a critical aspect of life in the riverine communities.

Power generation for homes and small businesses.

Agricultural machinery, boosting local food production.

By ensuring that these products serve community needs first, the initiative would not only provide economic empowerment but also reduce dependence on costly and often unavailable fuel imports. Any surplus production could be sold under government supervision, ensuring additional revenue generation while preventing the emergence of black markets.

Training, Environmental Responsibility, and Enforcement

A successful transition from illegal refining to a cooperative model would require capacity building and technical training for participants. The government, in partnership with industry experts and educational institutions, should introduce training programs on modern, environmentally friendly refining techniques.

Environmental sustainability must be a top priority, with strict regulations on emissions, waste disposal, and safety measures. Cooperative members should be held accountable for any environmental breaches, ensuring that their operations align with Nigeria’s broader climate and pollution control goals.

Simultaneously, the government must maintain law enforcement measures to deter those who refuse to transition to legal refining. A phased integration approach should be adopted—providing viable alternatives for those willing to comply while enforcing strict penalties against those who persist in illegal refining and crude theft.

Conclusion

The issue of illegal refineries in Nigeria cannot be solved through brute force alone. A strategic, well-regulated approach that empowers the people of the Niger Delta while ensuring environmental sustainability is the key to a lasting solution.

By transforming illegal refiners into legitimate cooperative refinery operators, Nigeria can turn a crisis into an opportunity—creating jobs, boosting local economies, reducing environmental damage, and improving energy security. A community-driven refining model, backed by government policies and private sector investment, would not only solve the problem of illegal refineries but also pave the way for a more inclusive and sustainable energy future.

It is therefore important for a socio political organization like PANDEF to position itself as a vital force in the SouthSouth dynamics by intervening in different issues especially regarding illegal refineries and mediate between the NNPCL/ Government and the people of the NigerDelta involved in this criminal act. There are always solutions to situations but one needs to work on them. The people of the NigerDelta deserve to address their economic self sufficiency in a legal manner for peace.

PANDEF ought to initiate this mediation and obtain the services of Consultants and resourceful experts to assist the organization with this arduous task. PANDEF has a role to play and should take a step forward.

With a Chairman like Amb. Dr. Godknows Boladei Igali, OON, a seasoned diplomat, there should be a successful intervention to offer those young people involved in this refineries with indigenous methods the opportunity to earn a livelihood.

Dr. G. Fraser. MFR

Fraser Consulting Ltd

International Energy Consultants.