Oil exploration and ecological damage: the compensation policy in Nigeria

Abstract

Nigeria has been engaged in the business of oil exploration, prospecting and marketing for several years now. The exploratory activities of the oil multinational companies (MNCs) in the Niger Delta region of Nigeria have contributed to the deprivation of the inhabitants and have led to the loss of biodiversity and the disruption of the ecosystem. Paradoxically, the compensation the local inhabitants receive is often not paid, inadequate, delayed or contentious, thus leaving them poorer. Although there are several Nigerian laws protecting the environment, there is no comprehensive legislation that addresses the issue of compensation and liability for inhabitants suffering from the consequences of environmental damage. This article reveals the inadequacies of Nigerian laws on compensation and suggests the need for an acceptable compensatory and remediation regime to protect the interests of the environment and the victims of environmental harm.

Résumé Le Nigeria s'engage, depuis quelques années, dans l'industrie pétrolière à travers les activités d'exploration, de prospection et de marketing. Les activités des entreprises multinationales dans le delta du Niger ont contribué à l'appauvrissement des habitants et à la dégradation de l'environnement. La compensation que les habitants reçoivent pour ces dommages est souvent insuffisante, retardée ou même refusée. Même s'il existe des lois nigériennes qui protègent l'environnement, il n'existe pas des lois qui adressent la question de la compensation. Ce travail démontre l'insuffisance des lois nigériennes et suggère le besoin d'un régime de compensation et de médiation efficace afin d'assurer que les intérêts des victimes des dommages environnementaux soient protégés.

Keywords:

• oil
• ecology
• Niger Delta
• compensation
• policy

Acknowledgements

This is an updated version of a paper delivered at the XVIIIth International Conference of the Society for Human Ecology, held in Lake Las Vegas, Nevada, USA, on 20–23 April 2011.

Notes

The African Charter on Human and Peoples' Rights also provides in its Article 21 (2) that “[I]n case of spoilation the dispossessed people shall have the right to the lawful recovery of its property as well as to an adequate compensation” (Organisation of African Unity 1981). The inadequate compensation of the Ogoni people (Niger Delta) was held to constitute a violation of Nigeria's obligation under the African Charter in the Social and Economic Rights Action Center (SERAC).