Availability, affordability and distribution of energy sources are necessities for sustainable national development. Nigeria is the 13th world’s largest producer of crude oil, yet it is unable to attain energy, environmental, social and economic security due to the adverse impact of crude oil theft. Despite the enactment of several laws to combat oil theft in Nigeria such as the Petroleum Production and Distribution (Anti-Sabotage) Act, the Petroleum Act, the Criminal Code Act, the Economic and Financial Crimes Commission (Establishment) Act, the Miscellaneous Offences Act, Oil Pipeline Act, the menace of oil theft and  its consequential economic and environmental handicap  has not abated. The aim of the study therefore is to establish a synergy between the labyrinth of issues with the legal and institutional efforts geared towards oil theft management in Nigeria. The methodology for this research is doctrinal. The finding of the study is that in spite of the ominous social, economic and environmental implication of oil theft in Nigeria, there is no comprehensive legislation to address the menace. The extant legislations do not define oil theft but tangentially refer to oil bunkering which is only one of the genres of oil theft. The study further fund that the impunity with which oil theft and related crimes persist is due to the gaps in the legislations, tax enforcement culture of regulatory agencies, and corruption amongst others.The study contributes that oil theft specific legislations with the establishment of mobile courts in flash points is the impetus required for effective oil theft abatement in Nigeria. The study concludes that diversification of the Nigerian economy from oil based to a non-oil resource based economy will reduce the lure of crude oil theft and improve Nigeria’s economic prospects.