Legal and Socio-economic Issues Concerning Black Marketer's Activities of Petroleum Products in Nigeria

Petroleum is an essential commodity that is highly demanded by the populace of the world because it is the major and predominant source of energy in the world. Given that there could be an abuse of petroleum products in Nigeria, Section 4 of the Petroleum Act further prohibits the storage and sale of petroleum products by black marketers in Nigerian communities. However, it is unfortunate that due to poor implementation of the Petroleum Act, there has been a constant increase in the activities of black marketers of petroleum products in Nigeria. This study embarks on a hybrid method of studying the activities of black marketers in the Nigerian petroleum industry. In this regard, 322 questionnaires were distributed to respondents residing in Nigeria, and descriptive and analytical methods were adopted to examine the results. The study found that the incidence of black market activities is often caused by legal and socioeconomic challenges, such as poor implementation of the legal framework, petroleum scarcity, poverty, and unemployment. It was therefore concluded that to curtail the activities of black marketers in Nigeria's petroleum industry, there should be a due implementation of the Petroleum Act, provision of petroleum products, and prosecution of persons involved in black market activities in Nigeria's petroleum industry.


Introduction
As fuel scarcity strikes harder across the nation, the black market is flourishing in various towns across Africa's largest oil producers. 1 The Nigerian National Petroleum Company Limited (NNPC), Nigerian Midstream and Downstream individuals who buy for household use. 6 Despite the provisions of Section 4 of the Petroleum Act, which prohibits the storage, distribution, and sale of petroleum products without a license, against this backdrop, the black market dealing with petroleum products has continued to rise in recent times, especially when the product is not readily available in certain areas because of either a short supply, the absence of filling stations, or the prohibitive cost of servicing the few there as a result of bad roads and other accessibility constraints. 7 The question that needs to be answered is whether the provisions of Section 4 of the Petroleum Act deal with the storage and sale of petroleum products and, in light of the increase in black marketers of the product in our communities, can be said to have complied with the provisions of the law.
This study is aimed at discussing the provisions of Section 4 of the Petroleum Act by considering the persistent increase in the black market in Nigeria and assessing the level of compliance with the provisions of the Act.
Furthermore, the non-doctrinal method adopted a questionnaire that was distributed to respondents residing in Nigeria. The questionnaire aimed to ascertain the incidence and causes of black marketers' activities in Nigeria. Furthermore, there are possible ways of remedying the challenges of curtailing black marketers' activities in Nigeria.

Black Marketer's Activities and Judicial Activism in Curtailing Their Act in Nigeria
It is the principle and fundamentals of the law that the black marketing of petroleum merchandise in Nigeria is considered illegal and not allowable under the

Nigeria Petroleum
Act. In this regard, it suffices to state that the Nigerian court has aptly reemphasized the position of the law in a plethora of cases. It suffices to state that the Nigerian court has been very active and prudent in the dispensation of justice as it concerns the activities of black marketers in the Nigerian petroleum industry. In the case of Nomany V FRN, 8 the court convicted the appellant for storing 3,423.097 metric tons of crude oil. Furthermore, the court in the case of Shahinul V FRN 9 was also of the view that it was an offense to involve and indulge in the illegal storage, selling, or distribution of petroleum products without being licensed as a petroleum marketer in Nigeria.
It should be noted that even as a transporter of petroleum products, such an individual will be liable if the petroleum product being transported belongs to a third party that is not licensed. This position of law was emphasized and held in the case of Hepa Global Energy Ltd v FRN. 10 In this case, the Appellant vessel owner 8 'Nomany V FRN (2018) LPELR-44546(CA)'. 9 'Shahinul V FRN (2018) LPELR-44528(CA) '. 10 Hepa Global Energy Ltd v FRN, (2017) LPELR-44033(CA); Majekodunmi, T. A., [et.,al.], 'Legal Issues in Combating the Scourge of Terrorism;Its Impact on International Trade and Investment: Nigeria as a Case Study ' (2022)  argued that the petroleum product being transported belonged to a third party; in this regard, he ought not to be liable. The court rejected this argument and held that the pertinent issue was possession, not ownership. Because the actual owner did not have a license, they must be liable. It suffices to state that the court's decision accords with common sense. It is submitted that a person in charge of any means of conveyance (be it car, vessel, etc.) is expected to take reasonable steps, not only to know what he or she is carrying but also the legitimacy of such a product. In this regard, an individual cannot be said to give the excuse that he/she does s not know that the product being transported is illegal. In the case under discourse, the company should have taken steps to verify whether the owner of the Petroleum Product had a license.
Concerning the above, it is further suggested that dealing with petroleum products without a license is a strict liability offence. The physical presence of a petroleum product in one's possession or custody effectively discharges the need "Statutory provisions concerning the unlawful possession of a substance or product and/or without a license or lawful authority wore a toga of strict liability. Once a person has a controlled substance or the prosecution has proven custody, the onus shifts to the individual found in the custody of the substance or product to justify his possession".
There is only a maximum quantity of 500 liters specified in the law, beyond which storage becomes an offence. In other words, if the petroleum product that one possesses is not above 500 liters, it would be lawful to store or sell it without a license. See Subsection (2) of section 4 of the Petroleum Act. The minister can also grant an exemption according to Section 4 of the Petroleum Act. Furthermore, if one is just a passenger in a car or any other means of conveyance of the petroleum product, liability will not arise. This was the position taken by the Court of Appeal in the case of Abass V FRN. 12 This is in accordance with common sense. It would be highly illogical to hold a passenger who has no business or links with the petroleum product being carried.
In affinity with the above position, and of course, to create a balance, the law states that if a person on board has a link with either the product being conveyed or the car/vessel carrying the product, then the person will be liable. In Normany V FRN, 13 the Appellant was merely onboard the vessel as an engineer. The court held that by such, he could be liable for a conspiracy since he was hired to take care of the vessel. The court added that he could have been aware of the unlawful carriage of petroleum products without a license.
Another instance when one cannot be liable is when one carries or possesses the product as an agent of someone with a license. In Danjuma V FRN,14 the Appellant was caught with 33000 liters of petrol and was thereby convicted. The conviction was set aside on appeal on the basis that the Appellant carried the product as an agent of someone who had a license. A similar phenomenon occurred in Ogbagbe v FRN 15 and the conviction of the Appellant was set aside.
The last two decisions are also in accord with agency jurisprudence, which absolves an agent from liability. The principal is always presumed to be acting unless the agent acts outside the scope of his duties. The penalty for dealing with petroleum products depends on the law under which the person is charged. Section 1(17) of the Miscellaneous Offences Act provides a maximum sentence of life in prison and forfeiture of the mode of transportation of the product. Section 4 of the Petroleum Act, on the other hand, provides a maximum sentence of two years in prison or a fine of N2,000 or both, as well as forfeiture of the petroleum product.

Industry
The law requires that those selling petroleum products have a license from appropriate authorities before venturing into the business. 18 Doing so without a license is impermissible, illegal, and criminal. 19 Other actions that can render one liable for punishment include an offer to sell, distribute, import, export, or otherwise deal with any of the above petroleum products. The offence extends to any act for which a license is required under the Petroleum Act. This has been discussed in Sections 4(1) and (6) of the Petroleum Act. In addition, Section 1(17) of the Miscellaneous Offences Act 20 provides a similar provision. It criminalizes importing, storing, selling, and distributing any petroleum product in Nigeria without a license.
Despite the provisions of the law against the black market in Nigeria, several people in our communities are still involved in the distribution, storage, and oil theft in Nigeria, especially given the current fuel scarcity. In a paper reported by Vanguard Newspaper, it was reported that because of lucrative returns, the illegal trade in petrol and other petroleum products has consequently continued to attract more Nigerians, especially the unemployed. In most of the places visited by Vanguard Insight, many illegal traders were seen retailing the product in jerrycans, drums, and tanks, and they were steadily patronized by commercial vehicle operators popularly known as danfo, keke, and okada, as well as regular taxi drivers, some private motorists, and other individuals who bought for household use in various areas. 21 Vanguard Insight discovered that this illegal fuel marketing usually starts from the depots down to street hawkers for those onshore, while those offshore get their supplies from incoming vessels or already discharged vessels that store products in their small tanks that the terminal operators that were supposed to receive the product could not reach. Others have engaged in breaking up pipelines for their supply. 22 However, the confirmation that the situation has indeed taken a turn for the worse is the presence of black market hawkers of petrol at every nook and cranny in the towns, especially close to the filling stations, including those that supposedly 20 Cap M17, LFN, 2004. 21  have no fuel to sell. For those engaged in this kind of business, such a time of fuel scarcity represents a boom season. However, given the frequency of petrol scarcity in the country, the black market hawking of the product may have come to stay as a regular business enterprise. 23 Business has been thriving, even when the country is not experiencing fuel scarcity. Reason? The returns are quite lucrative, which is an incentive to continue, especially when the law against it is enforced in the breach. Against this backdrop, the black market dealing with petroleum products has continued to rise in recent times, especially when the product is not readily available in certain areas because of either a short supply, the absence of filling stations, or the prohibitive cost of servicing the few there as a result of bad roads and other accessibility constraints. 24 Can we say that there has been compliance with the provisions of the law?
However, Section 228 (2) of the Petroleum Industry Act stipulates that 25 an individual is prohibited from engaging in petroleum activities without a valid licence, lease, or permit. Section 174 (1) of the Petroleum Industry Act further stipulates that, except for the relevant licence issued by the appropriate authority, a person or any artificial person shall not undertake any of the following activities or operations concerning midstream petroleum liquid operations: i. Construct, establish, or operate a terminal to export or import petroleum products; ii. Construct, and establish or oil refinery for petroleum product; iii. Construct, establish, or operate a facility, such as a pipeline for bulk transportation or movement of petroleum products; iv. Engage or operate bulk transportation or movement of petroleum products by rail or other means within Nigeria; v. Construct, establish, or operate a facility for the storage of petroleum products; vi. Constructs, establish, or operate a petroleum products transportation or movement network; vii. Engage or operate facilities for the sale of petroleum products. 23 ibid. 24 ibid. 25 Petroleum Industry Act 2021, s228.
Also, section 174 (2) of the Petroleum Industry Act provides further that, except for a relevant licence or permit issued by the appropriate authority of the Nigerian petroleum industry, a person or any individual is prohibited from undertaking the following activities concerning Nigeria's downstream petroleum products operations: (a)Construct or operate any facility for the distribution or sale of petroleum products to retail customers; establish, construct, or operate a depot for the storage of petroleum products; or (b) Undertake distribution, marketing, or retail of petroleum products.
Section 125 (1) of the Petroleum Industry Act 2021 provides as follows: 26 "Except by an appropriate licence issued by the Authority, a person shall not undertake the following activities concerning midstream and downstream gas operations: a)Establish, construct or operate a facility for the processing of natural gas; b)Establish, construct or operate a facility for the storage of natural gas; c)Establish, construct or operate a gas transportation pipeline; d) Engage in bulk transportation of natural gas by rail, barge or other means of transportation; e)Operate a gas transportation network; f)Establish, construct or operate a terminal, jetty, or other facilities for the export or importation of natural gas; g)Engage in wholesale gas supply; or h)Engage in the construction or operation of petroleum fertilizer plants".
Section 125 (2) provides further as follows: 27 "Except by an appropriate licence issued by the Authority, a person shall not undertake the following activities concerning downstream gas operations: a) Retail trading, distribution or supplies of natural gas; b)establishment, construction or operation of a gas distribution network; or (c) Establishment, construction or operation of a facility for the supply or trading of natural gas".
However, a cursory review of the provision of the Miscellaneous Offences Act, section 1 (17) stipulates thus: 28 "Any person who without lawful authority or appropriate licence (a)Imports, exports, sells, offers for sale, distributes or otherwise deals with or in any crude oil, petroleum or petroleum product in Nigeria; (b) Does any act for which licence is required under the Petroleum Act, Shall be guilty of an offence and liable on conviction to be sentenced to imprisonment for life, and 26 Petroleum Industry Act 2021, s125. [1]. 27 Petroleum Industry Act 2021, s1 (17). 28 Chukkol (n 6). in addition, any vehicle, vessel, aircraft or other conveyance used in connection therewith shall be forfeited to the Federal Government".
Considering the law and activities of black marketers in Nigeria, there is no compliance with the provisions of the law. As rightly observed by Olalere, Adefarati, and Matthew, Petroleum and its allied resources play a prominent role in the economic well-being and stability of Nigeria. These constitute the highest source of revenue for the country. However, it is unfortunate that Nigeria has suffered from oil theft, pipeline vandalism, militancy in oil-producing states, and allied nefarious activities resulting in the country's loss of revenue, lack of stable and sustainable power supply for the country's development, inflation, etc.. Hence, there is a need to enact and enforce adequate laws that will regulate its production, distribution, and transportation. 29 The need for the law is further justified by the claim that the majority of fuel sold in the illicit market comes from pipeline vandalism and unauthorized bunkering. Indeed, online information indicates that many gas stations also obtain their petroleum supplies primarily through illegal bunkering because they pay less at the time of purchase. 30 It is said that tanker drivers are involved in every criminal aspect of the fuel trade. By diverting commodities to hawkers, they encourage the unlawful sale of fuel. Some tankers do not completely discharge their contents at the specified gas stations, and the unused products are sold to dealers in the black market.
Consequently, the Law is admirable and would significantly aid in reducing the aforementioned evil acts involving petroleum products. However, it has been suggested that stakeholders in the upstream, downstream, or midstream of the Nigerian petroleum industry, who always need one license or the other or DPR Consent, should ensure that all necessary consents and licenses are obtained to avoid unpleasant experiences. Hawkers on the dark market should also be noted. 31

Causes of the Continuous Black Marketer Activities in Nigeria Petroleum Industries
It suffices to state that the Nigerian black marketing industry is a tag against the Petroleum Act of Nigeria. Legal strategies have been geared toward curtailing black marketers' activities in Nigeria. However, there are several socioeconomic and legal issues that often result from black marketers' activities in Nigeria, some of which are: i. Scarcity of petroleum products in Nigeria; ii. Ineffective and inefficient prosecution of black marketers of petroleum product; iii. The absence of filling stations; iv. The prohibitive cost of servicing the few of the existing filling stations that are faulty; v. Bad roads in accessing the most filling station; vi. Corruption among owners of filling stations in conniving with the black marketer of petroleum product; vii. Unemployment; viii. Poverty.

Sample Size and Technique
The study adopted a sample size of 322 respondents from various geopolitical zones in the Federal Republic of Nigeria. In this regard, a simple random sampling technique was adopted to select respondents to respond to the questionnaire. The essence of adopting a simple random sampling technique is that it has been adjudged to be preferable in identifying respondents 32 and possessing the following features: 31 ibid. 32 P. Aidonojie,[et.,al.]. ' -20].; OO Oladele, [et.,al.] i. It is a simple and not complicated method of identifying respondents; 33 ii. It is preferable in identifying respondents from a heterogeneous nation; 34 iii. The results obtained are difficult to influence; in this regard, the chances of a result being biased are eliminated. 35

Data Presentation and Analysis
The data generated or obtained in this study is therefore analysed as follows:

Research Question One
Which of the following Geopolitical Zone in Nigeria do you reside?    Figure 1 and Table 1 above are valid identifications of the geopolitical zone where the respondent resides or is a resident in Nigeria.

Research Question Two
Do you agree that there is an incidence of illegal black market activities in the Nigerian petroleum industries?   Figure 2 and Table 2 show respondents' valid identification of the incidence of black marketers' activities in Nigeria's petroleum industry.

Research Question Three
Which of the following Legal and Socio-economic challenges often result or cause illegal black marketer activities in Nigeria's petroleum industry? You can tick more than one option   Figure 3 and Table 3 are valid clusters for identifying the legal and socioeconomic challenges that often result in black market activities in Nigeria's petroleum industry.

Research Question Four
Do you agree that the black market activities in the Nigerian petroleum industries can be curtailed?   Figure 4 and Table 4 indicate whether black marketers' activities within the Nigerian petroleum industry can be curtailed.

Research Question Five
Which of the following could aid in curtailing the incidence of black marketer activities in the Nigerian petroleum industry? You can tick more than one option   Figure 5 and Table 5 are valid respondents for the identification of several prospects concerning the operation of fintech in Nigeria's financial and economic sectors.

Discussion of Findings
The data obtained regarding the questionnaire distributed to the respondents in this study assessed the legal and socioeconomic issues of black marker activities in the Nigerian petroleum industry in Nigeria. The data presented in Figure 1 and Table 1 reflect that the respondents were residents of Nigeria. Thus, they are better informed about the issues of black marketers' activities in Nigeria's petroleum industry. Furthermore, it is also evident that the respondents possess a good knowledge of black market activities in Nigeria's petroleum industry, which will enable them to give an informed response to the questionnaire.
As shown in Figure 2 and Table 2, 83.2% of the respondents agreed that there was an influx of black marketers' activities in the Nigerian petroleum industry. However, in Figure 3 and Table 3, the respondents further identify that black marketers' activities are acts that sprouted out several reasons caused or necessitated by some legal and socioeconomic challenges as follows: i. 83.6% of the respondents stated that scarcity of petroleum products in Nigeria is a challenge that often results in black marketers' activities; ii. 87.4% identify that the ineffective and inefficient prosecution of black marketers of petroleum product often spur the most person to indulge in the act; iii. 32% stated that there was an absence of filling stations, and the prohibitive cost of servicing a few of the existing faulty filling stations is also a major cause; iv. 52.8% agreed that bad roads in accessing the most filling stations often lead to a black market in Nigeria's petroleum industry; v. 63.6% stated that incidence of corruption among owners of filling stations in conniving with the black marketer of petroleum product; vi. Furthermore, 87% and 90.7% of the respondents stated that the high rate of unemployment and poverty among Nigerians often results in black marketers' activities in Nigeria.
Concerning the above legal and socio-economic challenges that often result in black market activities in Nigeria, in Figure 4 and Table 4, 83.1% of the respondents were of the view that the illegal activities of a black market in the Nigerian petroleum industry could be curtailed, given the fact that the major emanate from the defect inherent in Nigerian legal and socio-economic policies. In this regard, in Figure 5 and Table 5, the respondents further pinpoint some possible remedies to cure the legal and socioeconomic issues or defects that often necessitate black marketers' activities in Nigeria as follows: i. 82.9% of the respondents stated that there is a need for strict prosecution of persons involved in black market activities in Nigeria's petroleum industry; ii. 82.5% agreed that provision of adequate petroleum products will aid salvage and curtail black marketers' activities in the Nigeria petroleum industry; iii. 46.5% stated that the Nigerian government need to Create an enabling environment for an entrepreneur to create employment opportunity; iv. 57.2% identify that the provision of a good road could enable easy accessibility for most filling stations with bad roads, thereby curtailing black marketers' activities in Nigeria's petroleum industry; v. 65.8% also agreed with the need of the Nigerian government to provide a sustainable mega-filling station; vi. Furthermore, 56.5% identified that the Nigerian Government should engage in sustainable development to reduce the level of poverty in society.

Conclusion
After examining the current activities of black marketers in our community, I conclude to s conclusion that there is no compliance with the provisions of the law. Despite Section 4 of the Petroleum Act and several provisions under the PIA prohibiting the storage, sale, transportation, and distrusting of petroleum products in Nigeria, there has never been an improvement. In fact, with fuel scarcity, this is even worse. This is because the business is lucrative and there is a loophole in the law. This has been a long-standing problem in Nigeria, contributing to a high level of inflation that adversely affects the economy.
Thus, it is highly recommended that the government implement the following measures to control or curb their activities: i. Provide solutions to fuel scarcity and improve oil subsidies; ii. Ensure the enforceability of the law against black marketers as a form of deterrence; iii. Remove corrupt persons handling our oil resources and avoid playing politics on national resources; iv. Provide adequate security to avoid oil theft and vandalization of pipelines.