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Asari Dokubo
ABUJA, Nigeria—Alhaji Dokubo-Asari once stalked the mangrove-choked creeks of the Niger Delta, a leaf stuck to his forehead for good luck, as a crew that he ran bled oil from pipelines and sold it to smugglers. "Asari fuel," they called it.
Last year, Nigeria's state oil company began paying him $9 million a year, by Mr. Dokubo-Asari's account, to pay his 4,000 former foot soldiers to protect the pipelines they once attacked.
He shrugs off the unusual turn of events. "I don't see anything wrong with it," said the thickly built former gunman, lounging in a house gown at his home here in Nigeria's capital.
Nigeria is shelling out hundreds of millions of dollars a year to maintain an uneasy calm in the oil-rich delta, where attacks ranging from theft to bombings to kidnappings pummeled oil production three years ago, to as low as 500,000 barrels on some days. Now production is back up to 2.6 million barrels daily of low-sulfur crude of the sort favored by U.S. refineries, which get nearly 9% of their supply here.
The gilded pacification campaign is offered up by the government as a success story. But others say the program, including a 2009 amnesty, has sent young men in Nigeria's turbulent delta a different message: that militancy promises more rewards than risks.
While richly remunerated former kingpins profess to have left the oil-theft business, many former militant foot soldiers who are paid less or not at all by the amnesty, and have few job prospects, continue to pursue prosperity by tapping pipelines.
Now, oil theft appears to be on the rise again. Royal Dutch Shell (RDSB.LN +0.59%) PLC's Nigerian unit estimates that more than 150,000 barrels of oil are stolen from Nigerian pipelines daily. That is one of the lower estimates. In May, theft from one pipeline got so bad that Shell simply shut it down.
"Everybody seems to believe...that the Niger Delta problem is over," said a former government mediator, Dimieari Von Kemedi. "It's just on pause. The challenge is to move from pause to stop."
Meanwhile, Nigeria is facing a separate militancy, in the form of the radical Islamic group Boko Haram, whose guerrilla attacks on churches and police stations in a different part of the country have left hundreds dead. Some legislators have proposed extending amnesty to Boko Haram, as well.
It is an expensive proposition. This year alone, Nigeria will spend about $450 million on its amnesty program, according to the government's 2012 budget, more than what it spends to deliver basic education to children.
Read more: Nigeria's Former Oil Bandits Now Collect Government Cash - WSJ.com (http://online.wsj.com/article/SB10001424052702304019404577420160886588518.html)