Tempting riches of Nigeria oil crime

By Alex Last
BBC News, Nigeria

Nigeria's military has taken a tough new approach with militants

Kidnappings in Nigeria's oil-producing Niger Delta have become an almost daily occurrence.

Mostly the targets are foreign oil workers; some have been taken from supply ships by heavily armed groups in speedboats, others from their cars while out on jobs.

In one case, gunmen simply walked into a bar popular with Westerners inside the main oil city of Port Harcourt itself.

They checked the nationalities of the drinkers and then took six people away.

It was a deliberate demonstration of their ability to strike anywhere - not just the more remote countryside.

'Memorandum of understanding'

The most obvious reason for the rise in kidnappings is that it is good business.

Although the government and oil companies routinely deny it, it is well known that, in most cases, the kidnappers are paid off.

Sometimes it is characterised as a renegotiation of an oil company's "memorandum of understanding" with a local community.

The positive side of this policy is that the hostages are released unharmed, relatively quickly - and everyone knows the game.

The problem is that it also makes kidnapping quite attractive.

Elections

The delta is awash with weapons, and there is high unemployment and poverty.

Many communities feel angry at the lack of development in their area and the pollution of their environment by the oil industry.

Some youths have turned to armed groups.

Some are simply criminal gangs, some are involved in "bunkering" - the extremely lucrative trade of stealing crude oil.

Reports say 10 people died in one patrol boat exchange in the delta

Some say they are more political, fighting the cause of greater local control of oil wealth.

Occasionally groups work together, for example under the umbrella of the Movement for the Emancipation of the Niger Delta (Mend), attacking and blowing up oil facilities with devastating results.

Nigeria is the eighth largest oil exporter in the world and militant attacks have cut production by more than a quarter.

But there is also a wider political connection.

Derivation must mean local communities control the money, not the politicians Local councillor

Nigeria is holding elections early next year and political power means access to the country's huge oil revenues.

Many of the armed groups have links to local politicians - some were used by politicians to help win elections in the past.

Already there is a suggestion that the increased kidnappings are the result of armed militias trying to strengthen their position in the run-up to next year's polls.

Some say the politicians are also benefiting, by showing they have influence with the militias to get people released.

In a recent e-mail, Mend said politicians were "using this as a platform to showcase their leverage among 'militia groups' in the delta. It's now a booming trade".

'Corruption'

The violence could also be seen as part of a bigger campaign, endorsed by militants, human rights groups and state politicians for greater "derivation" of oil revenues.

In other words, more of the oil money should be retained by the oil-producing states of the delta.

Some say they are fighting for greater local control of oil wealth

The theory is that the money could be used to improve development, and so reduce conflict.

In 2002 , a report by military chiefs on security in the Niger Delta recommended that derivation to delta states should be substantially increased from 13% to 50%.

But as one irate local councillor in Delta State said: "State governments in the delta already receive billions of dollars of their slice of the national pie.

"None of it reaches us because of corruption. Derivation must mean local communities control the money, not the politicians."

President Olusegun Obasanjo had initially tried to take a softly-softly approach towards the violence that escalated earlier this year.

But in the middle of August, after a string of new kidnappings, he announced a new tough policy; the military and police would match the armed groups "force with force".

Within days, security services had raided a slum area of Port Harcourt and arrested more than 100 people.

Security was strengthened. There were more checkpoints, helicopters flew overhead and navy boats patrolled the city's waterfront.

Two days later, out in the creeks, a boat full of militants transporting a kidnapped Nigerian Shell oil worker to his release ran into military patrol boats.

Normally, a confrontation would be avoided.

But with tensions running high, a gunfight broke out, and reports say 10 militants, a soldier and the hostage were killed.

But that did not stop gunmen kidnapping more foreigners.

This time a Nigerian soldier protecting the workers was killed.

Soon after, government troops, angered by the death of their colleague, torched a slum close to where the hostages were seized. Hundreds of shacks and shops were destroyed.

Local leaders, diplomats and indeed the oil companies are worried that a heavy-handed military approach will only exacerbate tensions in the delta, endangering the lives of both civilians and hostages.

As elections approach, few think there will be any easing of the violence, if anything people fear it will get worse.