A CASE FOR THE ESTABLISHMENT OF OIL SPILL LIABILITY TRUST FUND IN NIGERIA

Abstract

Oil spillage has plagued Nigeria since petroleum operationsbegan in the country. The problem is often overpoweringespecially in cases where the spill arises from acts ofstrangers or ageing pipelines. In a bid to manage thesituation, relevant statutes and administrative regulations onthe subject were prompted, with provisions for compensationof the victims of oil spillage and penal sanctions fornegligence of oil companies. However, the inadequacy ofcompensatory provisions in the relevant legislation, strictrequirement for proof of negligence, the question of locusstandi in the tort of public nuisance, and the multiplicity ofdefences available to defendants in cases involving oilspillage have all combined to defeat the objectives of thereversal efforts put forth in Nigeria. In the long run, theaffected environments and the host communities have beenthe worse for it. This paper is predicated on the backgroundof the foregoing. Accordingly, the paper will show that theestablishment of an Oil Spillage Liability Trust Fund inNigeria is both timely and inevitable if effective remediationof the impacted environment will ever be possible. In themain, it will be shown that the operation of an Oil SpillLiability Trust Fund is ultimately both time and cost effectivein the restoration of the environment and compensation ofindividuals adversely affected by oil spillage. It will also beshown that the functions of National Oil Spill Detection andResponse Agency, vested with the responsibility to coordinatethe implementation of the National Oil Spill Contingency Plan (NOSCP) for Nigeria, in accordance withthe International Convention on Oil Pollution Preparedness,Response and Co-operation (OPRC) 1990, can only beeffectively carried out with the availability of stable funding.In so doing, the long essay will consider relevant legislationgoverning liability for oil spillage in Nigeria, as well as theapplicable enforcement mechanisms. A critical review of theNOSDRA Act will also be undertaken with a view to bringingout its inherent limitations in coping with the overwhelmingintricacies of oil spillage in Nigeria.