It is important to address certain misconceptions on the cause of poverty in Nigeria. On the account of the nation’s immense human and natural resources, Nigerians ought not to be associated with poverty. But poverty cannot be abolished in a capitalist country. For instance, 37.9 million (11.5%) of the residents live in abject poverty in the United States that is said to be the richest country in the world.

In justifying the harsh economic pains inflicted on the Nigerian people due to the zealous implementation of neoliberal economic policies, the federal government has blamed oil theft and smuggling of petroleum products as the cause of poverty in Nigeria. However, President Bola Tinubu has said that, “After the initial turbulence… the take-off was very cloudy and uncertain. Today, we see a light at the end of the tunnel.” Since we do not share in the optimism of the government, we are going to review the task of abolishing poverty in the country. 

The World Bank says that a poor person is anyone who lives on less than $2.15 (N3,440) a day. We all know that most Nigerians live on less than N3,440 per day.  In 2018, Nigeria was rated as the poverty capital of the world as about 87 million Nigerians fell into extreme poverty that year. In 2022, it was reported by the Nigerian Bureau of Statistics that 133 million citizens had become “dimensionally poor.”  The World Bank’s latest Africa’s Pulse report has projected a grim future for Nigeria, with poverty expected to rise by 3.6 percentage points by 2027. 

Released during the ongoing IMF and World Bank Spring Meetings in Washington, DC, the report cites Nigeria’s reliance on oil, economic fragility, and governance challenges as key drivers. It highlights the country’s structural economic weaknesses, dependence on oil revenues, and national fragility as key barriers to meaningful poverty reduction.  

It has also been confirmed that Nigeria has been downgraded to the fourth position on the list of top African countries by gross domestic product (GDP). Nigeria’s GDP has plummeted to $188.27 billion. In the African continent, South Africa leads with a GDP of $410.34 billion, followed by Egypt at $347.34 billion, and Algeria at $268.89 billion.

The Premium Times has observed that “Nigeria, which until 2023 was the continent’s biggest, fell to the fourth position after two sharp devaluations of its currency shrank its GDP by more than half, causing the naira to lose roughly 70 per cent of its value against the dollar.”

As a result of the reckless devaluation of the currency, the business environment has become hostile as a result of rising interest rates and scarcity of forex needed to import raw materials and machinery.  According to the Manufacturers Association of Nigeria, 335 manufacturing companies became distressed and 767 shut down in the year 2023 with hundreds of thousands of job losses. 

In a saner clime, political leaders, regardless of political party differences, would have united in addressing the grim picture of poverty and political instability painted by the World Bank, a vigorous supporter of the Tinubu administration. Instead of confronting the crisis of poverty headlong, the ruling party, (the All-Progressive Congress) is busy promoting political prostitution by receiving spineless defectors from other political parties to its fold. 

As the nation prepares for the 2027 general election, the ruling party has almost concluded arrangement to convert Nigeria to a one party state.  But have the leaders of the APC forgotten that General Sani Abacha’s dream of metamorphosing into a civilian president did not materialise even though he had been adopted by the five registered political parties? Did the leaders of the Peoples’ Democratic Party not boast of ruling the country for 60 years? 

Even though section 14 of the Nigerian Constitution stipulates that the State shall provide for the security and welfare of the people, poverty and insecurity are on the ascendancy in the country. Section 16 thereof outlines the economic objectives of the state. It directs the state to harness the nation’s resources, promote national prosperity, and establish an efficient, dynamic, and self-reliant economy. Additionally, it emphasizes the state’s responsibility to ensure that citizens have adequate shelter, food security, a reasonable minimum living wage, and social welfare benefits like old age care, unemployment benefits, and support for the disabled.

In utter violation of the economic objective of the State, the members of the ruling class have sold public enterprises and awarded oil blocks and licences for solid minerals to themselves. Thus, the State has engaged in concentrating the commonwealth in the hands of a few people contrary to the letter and spirit of the Constitution. However, some of those who lost out in the criminal diversion of the commonwealth through privatisation and award of oil blocks have engaged in the smuggling of solid minerals. 

Even though the members of the ruling class have conspired to make the fundamental objectives and direct principles of state policy non justiciable in any court, the struggle of the Nigerian people for dividends of democracy has compelled the State to adopt policies and enact a numbers of laws  that are designed to promote the welfare of the Nigerian people. 

The welfare laws include Pension Reforms Act, National Minimum Wage Act (yet to be implemented by 20 states), Compulsory Free Universal Basic Education Act, Employees Compensation Act, Factories Act, National Commission for Mass Literacy, Adult and Non- Formal Education Act, Child Rights Act in FCT and Child Rights Law in every state, Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, National Senior Citizens Act, Discrimination Against Persons with Disabilities (Prohibition) Act, Federal Mortgage Bank Act, National Housing Act, etc.

It is regrettable to note that the welfare laws are observed in breach by the Nigerian State to the detriment of the working people. For instance, the Child Rights Act and Child Rights Laws Compulsory Free Universal Basic Education Act have imposed a legal duty on the federal and state governments to ensure that every child is given free and compulsory education from primary school to junior secondary school. 

The immediate past Executive Secretary of UBEC, Dr. Hamid Bobboyi, during his presentation of the 2020 and 2023 budget implementation report to the Senate Committee on Basic and Secondary Education in Abuja, disclosed that N135,540,905,308.92 in matching grants have not been accessed by states in the last few years.

Owing to the refusal of state governments to contribute counterpart fund to access the matching grant of about N135 billion in the UBEC Account as stipulated by the law, Nigeria has 20 million out of school children. The Alliance on Surviving Covid-19 and Beyond (ASCAB) dragged the Federal Government and the 36 state governments to the Federal High Court seeking to compel them to comply with the education laws. Since there is no defence to the case, the defendants have challenged the locus standi of the plaintiffs to institute the action. 

Furthermore, the recent data released by the National Pension Commission show that total assets in the Nigerian Pension industry rose by 23% year-on-year to N22.5trn in December 2024. Instead of ensuring that pensioners are promptly paid their pension the federal government has borrowed N10 trillion from the fund. Worried over the concern of pensioners the house of representatives has resolved to recover the loan on the ground that most pensioners are unable to access their retirement funds despite complying with the requirements of the contributory pension scheme.

The House Committee was mandated to investigate the status of the pension fund assets of over N15.5 trillion with a view to ensuring that the N10 trillion loaned to the federal government from the pension fund is duly recovered and modalities are put in place to hinder the collapse of the pension schemes.

Under the Federal Mortgage Bank Act, workers are required to contribute to housing primarily through the National Housing Fund (NHF), where a mandatory 2.5% of their monthly salary is deducted and remitted to provide affordable housing loans to eligible workers. The contribution, together with other contributions from other lowly placed citizens, helps to fund the NHF.

The National Housing Fund (NHF), like other interventionist administering programmes, has become a subject of abuse and fraudulent practice. In November 2024, the Independent Corrupt Practices and other related offences Commission (ICPC) arraigned Mr. Gimba Ya’u Kumo, former chief executive officer, of the Federal Mortgage Bank of Nigeria (FMBN), for allegedly diverting $65 million housing fund. The money was for the construction of 962 units of residential houses at the Goodluck Jonathan Legacy City in Kubwa, a satellite town in Abuja.

The Nigeria Labour Congress and the Trade Union Congress should closely monitor the trial and request the ICPC to investigate the allegation made in 2012 by Mr. Gimba Ya’u Kumo, that some “unscrupulous employers” had milked the fund dry to the tune of N100 billion. The NLC and the TUC owe workers a duty to ensure that the stolen sums of $65 million and N100 billion are recovered and utilised for building houses for workers. 

In spite of shortcomings and lack of independence, the anti-graft agencies have continued to record success in the recovery of looted wealth and other assets. In its 2024 report, the Economic and Financial Crimes Commission (EFCC) detailed a breakdown of the sums recovered to include N364.5bn, $214.5m, £54,318.64, €31,265. Other recovered assets included the forfeiture to the Federal Government of over 753 duplexes and other apartments, the largest recovery by the Commission since its inception. 

In 2023, the EFCC recovered nearly N250 billion, along with millions in foreign currencies, including dollars and pounds sterling. On its part, the independent Corrupt Practices and Other Related Offences (ICPC) recovered assets/cash worth N105.82 billion between 2023 and 2024. The Nigeria Customs Service, National Drug Law Enforcement Agency, National Agency for Food and Drug Administration and Control etc.

The EFCC also stated in the report that some of the monetary recoveries have been reinvested by the Federal Government in initiatives that provide significant benefits to the Nigerian people. It cited the example of the N50bn granted by the Federal Government to the Nigerian Education Loan Fund (NELFUND), a programme launched in 2024 to provide interest-free loans to students in tertiary institutions. 

The EFCC reported that other recovered funds were being invested in development projects—such as improved roads, hospitals, and power supply—to elevate standards and support Nigeria’s long-term growth. The remaining funds that have been recovered are paid into the account of the Federal Government. 

In view of the fact that the recovered loot had been criminally diverted or re-looted in the past, it is suggested that a special account be opened for warehousing recovered loot. The proceed of such recovered loot should be earmarked to fix dilapidated educational institutions and medical facilities in the country. The 753 housing units recovered from a former governor of the Central Bank of Nigeria should be handed over to the Federal Mortgage Bank for completion and onward distribution to workers. 

It is not in dispute that the country has been beset with soaring inflation after the scrapping of fuel subsidy and liberalisation of the exchange rate for the naira. Instead of reverting the dangerous economic policies the federal has continued to blame the unpatriotic elements that have engaged in crude oil theft and smuggling of fuel from Nigeria to neighbouring countries. It is our submission that the Federal Government is not prepared to end the economic sabotage due to the involvement of multinational oil companies and their local lackeys. 

A few months ago, the Nigerian National Petroleum Corporation Limited announced that the Port Harcourt and Warri publicly owned refineries had resumed production while the Dangote Refinery said that it has the facilities to refine the entire fuel consumed in the country. But the Federal Government has continued to waste trillions of Naira on the importation of fuel from foreign countries. For instance, the media reported that between October 2024 and January 2025 (4 months), the nation spent a whopping sum of N5.5 trillion importing fuel, diesel and kerosene. 

Despite the removal of fuel subsidy, it has been confirmed by the Nigeria Customs Service that the smuggling of fuel from Nigeria to neighbouring countries has continued because it is sold at N2,000 whereas it is sold cheaper in Nigeria. Since the government is not prepared to stop the nefarious trade of fuel smuggling, another increase in the price of fuel may be in the offing. However, i wish to point out that the Federal Government’s efforts to end oil theft and smuggling of fuel have been frustrated by well-known public officers and multinational oil companies without any sanction. Permit me to provide some irrefutable evidence of such economic sabotage. 

In 2010, the Petroleum Equalisation Fund (Management) Board, said it would commence the electronic monitoring of petroleum products distribution from the first week in January 2011. The management of the Board said that officials of the Fund had been extensively trained and deployed to the over 50 depots operated by the PEF across the country to begin the implementation of the new business solution, termed ‘Project Aquila’ which aims to revolutionise products movement in the downstream subsector. It turned out that the officials were demobilised and prevented from monitoring the movement petroleum products distribution.

On 8th August 2018, the Federal Executive Council approved the installation of technology monitoring schemes and structures under the Petroleum Equalisation Fund (PEF) for N17 billion. Dr. Ibe Kachikwu, the then Minister of State for Petroleum Resources, disclosed that the deployment of the automated fuel system management and censor network would ensure 100 per cent tracking and monitoring of petroleum products. But the technology monitoring device was not installed while the N17 billion earmarked for it was criminally diverted. 

On July 13, 2024, the federal government awarded contracts of $21 million to ensure the full metering of Nigeria’s 187 oil flow stations as well as a software to track the movement of Nigeria’s oil in the high seas. The Minister of State, Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated that the move was to remove all doubts as to the quantity of oil that Nigeria produces on a daily basis as well as to be able to track crude oil to their expected destinations. 

In December 2019, the Directorate of Petroleum Resources (DPR) turned to French data firm Kpler, just six years old and staffed by a hundred mostly young employees, to help it ferret out the smugglers from the thousands of ships plying Nigerian waters. The head of Kpler partnership with Nigeria, Antoine Pillet said, “In some ways, we’re the CCTV of what’s going on in Nigerian waters. We provide the data, but don’t really give opinions on what may be going on.”

DPR’s Head of Public Affairs, Paul Osu, said: “This technology is a way of improving the way we do things. Of course there are problems here and there, but we don’t have inherent problems. Technology is the way to boost transparency of operations and improve investor confidence.”  

Apart from the above measures, the Federal Government awarded a contract of $144 per annum for pipeline surveillance, coastal protection, and safeguarding of critical infrastructure in the Niger Delta region. Meanwhile, the armed forces have deployed a task force to end oil theft and pipeline vandalism in the Niger Delta region within the shortest possible time. Despite the above measures put in place, the country still loses 400 000 barrels of crude oil valued at N2.39 trillion per day. A 2022 report by the Nigerian Extractive Industry Transparency Initiative (NEITI) confirmed that about 619.7 million barrels of crude oil, valued at $46.16billion have been stolen in the last 12 years.

From to time, the involvement of the multinational oil and shipping companies has been exposed. But due to lack of political will on the part of the State to end oil theft, smuggling of fuel and solid minerals, poverty has increased in the land. At this juncture, it is pertinent to refer to specific cases of oil theft by the powerful oil cartel. Between 2011 and 2014, the federal government conducted investigation into the incessant oil theft. The House of Representatives too carried out an investigation into the heinous economic crime. 

Hon. Ehiozuwa Johnson Agbonyinma, who was the chair of the House Committee which investigated the incidence of crude oil theft and made discoveries that are yet to be addressed, said: “The crude oil that landed in the United States port of Houston and port of Lake Charles, these are information produced by the US Customs – 391,141,049 million barrels, that is from Nigeria to the United States alone. We have the vessel numbers, we have the IMO number, we have the loading date, we have the loading order, we have the off-take date, off-take owner, off-take country and the number of barrels involved”.

Another investigation conducted by a team of Nigerian lawyers commissioned by the Nigerian Maritime Administration and Safety Agency (NIMASA), revealed that crude oil stolen from Nigeria and discharged in a port in Philadelphia was 60.2 million barrels of crude oil. The value was $12.7 billion. The well-known oil and shipping companies involved in the criminal enterprise have been treated like sacred cows by the federal government.

On October 6, 2022, the Nigerian National Petroleum Company Limited (NNPCL) disclosed that it had uncovered a four-kilometre illegal oil connection line from Forcados Terminal into the sea which had been in operation for nine years. The company’s chief executive officer, Mr. Mele Kyari, disclosed this at the Senate’s Joint Committees on Gas and Petroleum (Upstream and Downstream). He said that it was not clear how the line operated unnoticed for years but that the Forcados terminal is operated by Shell Petroleum Development Company of Nigeria (SPDC).

The NNPCL said that the theft point extended from the Trans Escravos pipeline and that the Afremo platform, operated by the Shell Petroleum Development Company of Nigeria Limited was the suspected exit point of the stolen crude. Although NNPCL promised to investigate the use of Shell pipeline for oil theft for 9 years, nothing has come out of the investigation. 

According to geo-scientific data, Nigeria’s solid minerals wealth is said to be worth about $750bn. The Minister of solid minerals development, Dr Oladele Alake has said by the time an accurate data exploration is completed, “trillions of naira will be a child’s play, and we will be nudging trillions of dollars.” But like the oil sector where the Government is losing billions of dollars annually to oil theft, solid minerals are equally stolen in billions on dollars in a sophisticated manner. 

Former minister of state for mines and steel development, Dr. Uche Ogah had revealed that about $9 billion worth of gold was smuggles from Nigeria annually through private jets. The serious allegation was never denied by the indicted private jet owners. In fact, the current Minister, Dr. Alake has corroborated Ogah’s position when he alleged that the powerful Nigerians behind illegal mining are also the ones sponsoring terrorism and banditry in the country. He also said that most of the foreigners engaged in illegal mining in the country had no proper immigration.

Notwithstanding the no-fly zone imposed on Zamfara state for security reasons, some private jets still land to steal precious stones with the connivance of top secured officers. Apart from involvement in terrorist activities, the criminals are also engaged in environmental pollution of mining sites. But like the powerful people involved in oil theft the criminal justice system is too weak to arrest the owners of private jets who are involved in smuggling of solid minerals out of Nigeria.

In February this year, the Ilorin Zonal Command of the EFCC arrested 41 suspects and impounded 12 trucks for their alleged involvement in illegal mining and possession of different types of solid minerals without appropriate licences. Most of the suspects are Chinese nationals. The Minister of Solid Minerals Development, Dele Alake, has said gold mined in the country is being exported illegally to the United Arab Emirates. The federal government ought to have enlisted the support of the UAE authorities to end the smuggling of gold from Nigeria. 

CONCLUSION 

The removal of fuel subsidy, devaluation of the national currency as well as oil theft, smuggling of fuel and solid minerals have compounded the crises of poverty and underdevelopment. We have proven that the Nigerian State is not committed to the eradication of oil theft and smuggling of solid minerals. It is left for Nigerians to demand the provision of dividends of democracy include the huge revenue from the nation’s enormous mineral resources. 

Since the Tinubu administration has no solution to the crisis of poverty, insecurity and unemployment, security forces have unleashed violence on peaceful protesters. During the #endbadgovernance of August 2024, many protesters including children were arrested and charged with treason. To cow citizens to silence, critics are arrested, detained and charged with criminal defamation and cybercrime offences.

While it is gratifying to note that Nigerians are prepared to challenge the reactionary forces that are holding the country down, the Nigeria Labour Congress and Trade Union Congress should organise workers to ensure that all welfare laws are enforced in the overall interests of the oppressed people. As shown in this presentation, the fundamental objectives and directive principles of state policy have been made non justiciable by the ruling class. It is only through a political struggle that the democratic rights of the Nigerian people can be actualized and made justiciable. That is not possible under a peripheral capitalist system. Therefore, the task before genuine forces of change is to mobilise the people to abolish all forms of poverty in the land through the socialist reconconstruction of the society.