SCRUTINIZING THE ADEQUACY OF COMPENSATION FOR OIL POLLUTION DAMAGE IN NIGERIA: AN AGENDA BEYOND NATIONAL CONTEMPLATION

Abstract

Oil exploration, extraction, refining, production and transportation very often result in environmental pollution leading to huge losses to the victims of such pollution damage. While oil has become a seeming indispensable source of energy and tremendous wealth to nations endowed with it, its exploration wreaks havoc whenever there is mishap or sabotage leading to pollution. The impact of oil pollution includes habitat degradation, atmospheric pollution from gas flaring, contamination of rivers, streams, farmlands, fields etc. These unfortunate incidents make the victims, individuals and host communities, landowners, pond owners and other property owners demand compensation. The research aimed at evaluating the compensation regime and framework for victims of oil pollution in Nigeria. The methodology adopted is doctrinal with primary and secondary sources on international law cases, statutes, textbooks, journal articles and online materials. The article enquired if the legal regime for compensation is robust enough to offset the losses and injuries suffered by the victims and found that after decades of oil exploration and production, Nigeria is yet to have a robust and comprehensive legislative and administrative framework to adequately deal with compensation claims arising from petroleum operations. This is due to challenges like establishing compensation fund, environmental courts vested with special jurisdiction to determine and award adequate compensation, need to review the composition of head of claim etc. which must be tackled before the compensation regime achieves the desired expectations. The paper recommended a holistic review of the statutory compensation framework for oil pollution to make it more realistic and in conformity with international best practices.