Crude oil illegal bunkering has become a lucrative business in Nigeria. It
involves stealing of crude oil through pipeline vandalism, processing and
finally selling the refined products in the ever available illegal markets. Blasts
at the illegal processing or refining sides and spillages are common
occurrences in Niger Delta region. This have led to significant environmental
degradation and economic loses to region. Despite consistent government and
multinational oil companies’ efforts to bring an end to this illegal and lucrative
business, the activities of oil bunkering seem to be on the increase. The paper
examines the causes and effects of illegal crude oil bunkering and refining in
Niger Delta region, which becomes a major source of environmental
degradation over the years. The paper adopted a qualitative/content research
approach using secondary sources such as government publications, journals,
newspapers, and the internet. The findings from the study revealed that;
militancy in the region is a major sources of oil bunkering in the Niger delta
region; illegal refining and destruction of illegal refining sites are major
sources of environmental degradation. The paper suggests the need to improve
security of oil pipeline in the region and in the long run replace the old cold
pipelines with modern ones.