Illegal refining, oil theft networks growing more sophisticated across Niger Delta –Report

A new security report by SBM Intelligence has revealed that illegal oil refining and crude oil theft networks are becoming more sophisticated across the Niger Delta, with operators embedding their activities within civilian communities and adopting more organised supply chains to evade security agencies.

The report, contained in the firm’s West Africa Security and Political Economy Report dated July 10, 2026, warned that despite ongoing security operations, criminal syndicates involved in oil theft are restructuring their operations, while armed groups displaced from northern states are spreading into new territories, worsening kidnapping, banditry and mob violence across the country.

According to SBM Intelligence, illegal refining operations in Rivers State have evolved into coordinated criminal enterprises with specialised actors handling pipeline vandalism, crude oil theft, transportation, refining and distribution of illegally refined petroleum products.

The report stated that stolen crude oil is believed to be siphoned from pipelines connected to the OML 18 production corridor before being transported through creek networks into the Orashi National Forest, where illegal refining takes place.

It warned that simply destroying illegal refining camps would not end the menace unless security agencies identify and dismantle the upstream pipeline tapping points supplying crude to the operators.

In neighbouring Abia State, SBM disclosed that security operatives recently uncovered a large illegal refining site at Ihie-Ahiaaba in Isiala Ngwa South Local Government Area, where about 70 refining pits had already been abandoned before security forces arrived.

According to the report, operators are increasingly relocating illegal refining facilities into civilian settlements to reduce operating costs and make detection more difficult.

“These networks have blended into civilian environments to minimise logistical costs and exploit proximity to transport arteries,” the report stated.

SBM warned that fresh illegal refining camps could emerge in Ugwunagbo and Obinwa local government areas within the next three months unless enforcement efforts focus on financiers and local collaborators sustaining the illicit business.

Beyond oil theft, the report said armed groups across Nigeria are adapting to increased military pressure by relocating to new operational areas, creating fresh security threats in communities previously considered relatively safe.

The intelligence firm noted that sustained military operations in Zamfara, Kaduna and Katsina states have forced several armed groups to migrate into neighbouring territories, while kidnapping syndicates are expanding their operations through forest corridors in the Southwest.

SBM identified Igabi Local Government Area of Kaduna State as one of the country’s emerging security hotspots, where mob justice has become increasingly common.

According to the report, six violent incidents were recorded in the area during the review period, with three involving mob attacks.

“Residents are on edge because the area has been a hotspot for banditry for years, inspiring them to take security into their own hands,” the report stated, adding that incidents of mob violence now occur about every four weeks.

The report also warned of possible retaliatory attacks in Zamfara State following the killing of Alhaji Tukur, brother of notorious bandit leader Kachalla Shehu Bagiwaye, by local vigilantes.

SBM assessed that Bagiwaye could launch revenge attacks against communities including Dogon Kade, Shinkafi and Zurmi in the coming weeks.

In Kano State, the report identified Rogo Local Government Area as another emerging security flashpoint, noting that violent incidents there have risen by 150 per cent over the past seven months.

Ten separate attacks were recorded between March and July this year as displaced criminal groups searched for new operational bases following intensified military operations elsewhere.

The report further linked recent attacks in Kagadama and Bagel villages in Dass Local Government Area of Bauchi State to an organised bandit network operating from the Azuge camp in Kumbodoro Forest.

SBM noted that the killing of a victim in Bagel appeared to have been deliberate rather than opportunistic.

“The killing in Bagel appears to have been deliberate, not opportunistic. The victim was likely shot for resisting abduction,” the report stated.

It also observed that kidnappers are increasingly targeting business owners and other individuals perceived to be financially successful after conducting surveillance on their victims before attacks.

SBM predicted that another kidnapping attempt could occur in Dass or neighbouring Alkaleri and Ningi local government areas in the coming weeks.

In the Southwest, the report linked a failed abduction attempt in Ilu-Abo, Ondo State, to an interstate kidnapping syndicate operating across Ondo, Ekiti and Kogi states.

According to the report, the criminal group uses the Akoko-Kabba-Owo forest corridor, warning that unless remaining members are arrested, fresh attacks on business owners and commercial travellers could occur later this year.

SBM also highlighted a violent clash involving scavengers around the Ojoo area of Ibadan, Oyo State, warning that prolonged insecurity around the transport hub could disrupt wholesale trade and regional commerce.

The report identified other emerging security threats, including increased deployment of explosives by armed groups, the growing influence of foreign Islamist militants and rising domestic violence linked to economic hardship and weak conflict-resolution mechanisms.

It, however, acknowledged recent gains by security agencies, including the rescue of an abducted Federal University of Lafia student by the Nasarawa State Police Command and the foiling of a kidnapping attempt along the Akure-Owo Expressway by the Ondo State Police Command, during which two suspected kidnappers were killed.

The report comes days after security agencies secured the release of pupils and teachers abducted in Oriire Local Government Area of Oyo State. Presidential spokesman Bayo Onanuga said eight suspected kidnappers were arrested during the operation and are currently in the custody of the Department of State Services, while several other gang members were neutralised.