Nigerian oil theft rampant

Black market fuel is widely available in Nigeria

The governor of Nigeria's oil-rich Delta state James Ibori has said thieves are stealing 300,000 barrels of Nigerian crude oil each day.

He told the BBC Network Africa programme that the theft - known as "bunkering" - was costing the country around $3.5bn a year in lost revenue.

Correspondents say Mr Ibori's figure is much higher than oil industry estimates, which suggest that 200,000 barrels a day are stolen.

Despite being Africa's largest oil producer, the revenues have done little to help overcome the country's poverty.

Recently the government raised the cost of fuel by more than 30%, ending huge subsidies.

I don't think any nation will fold his arms while being bled to death James Ibori

The government hopes that this will help cut the amount of oil being smuggled out of the country by Nigerians to be sold at a profit in neighbouring countries.

Because of the poor state of Nigeria's oil refineries, much of this is then imported back into Nigeria, costing the country a fortune.

'End game'

Mr Ibori said that security agencies were now actively trying to unveil those involved in the smuggling and he said several arrests had already been made.

"I don't think any nation will fold his arms while being bled to death," he said.

He said that they had indications of the countries that buy these illegal products.

"We intend to make contact with these countries and offer them legal channels to secure Nigerian products at reasonable prices."

He said these issues would be resolved through diplomatic channels but that "this is the end game".