AN APPRAISAL OF THE LEGAL DISPENSATION FOR OIL SPILL COMPENSATION IN NIGERIA

Abstract

Oil spillage is an inevitable consequence of oil production when viewed from the background of possible risks such as accidents or negligence. When the spills occur, harm is occasioned upon the environment and the livelihood of the people living in impacted communities. There are statutory provisions that enable the assessment and payment of compensation for oil spills However, the legal framework for the assessment and payment of compensations for oil spills in Nigeria is not clear and are not found in one enactment. Although oil spill attracts compensation, the Courts have found it difficult to develop a consistent and acceptable scheme towards compensation for oil spillage victims. There are fragmented extant laws that provide for such compensations. This paper examines the extant legal framework for compensation for oil spills. The paper found that the legal framework for compensation for oil spills is still at its embryonic stage in the country. The paper also found that the bill that presents credible provisions for compensations of oil spills have been approved by both chambers of the National Assembly but has equally been denied presidential assent. The paper further found that the conferment of powers on the Minister for Petroleum Resources under the Petroleum Act for making regulations for the effective implementation of the Act has been misconstrued to mean the exclusion of the legislature from making laws for the regulations of pollution arising from the oil and gas sector.