Polluter Pays Principle and Regulation of Environmental Pollution in the Nigerian Oil Sector

Polluter-Pays Principle and Regulation of Environmental Pollution in the Nigerian Oil Sector

University of Eastern Finland UEF Law School Master’s Thesis

28.10.2020 Andrew Olile Atabule (298319) Supervisor: Rosemary Mwanza

Abstract

UNIVERSITY OF EASTERN FINLAND Faculty

Faculty of Social Sciences and Business Studies

Unit

UEF Law School

Author

Andrew Olile Atabule

Name of the Thesis

Polluter-Pays Principle and Regulation of Environmental Pollution in the Nigerian Oil Sector

Major

Environmental and Climate Change Law

Description

Master’s thesis

Date

28.10.2020

Pages

62

Abstract

Environmental pollution has been a reoccurring issue in the Nigerian oil industry since oil was discovered in large quantities. Nigeria is the largest producer of oil in Africa and its economy is mainly dependent on the oil and gas sector. However, the sector’s operation and a strong reliance on it for revenue by the government have brought about tremendous environmental challenges on the atmosphere, soil, marine environment, biodiversity, and sustainability of terrestrial ecosystems. Oil exploration activities in Nigeria has contributed to the long-term environmental pollution which is detrimental to human health and the environment. Similarly, the exploitation and exploration of oil have led to the economic development of the nation. Hence, the need to strike a balance between environmental protection and economic development.

Priority was given to environmental protection as numerous legislations were passed to address the issue of environmental pollution caused by the activities in the oil industry. The Polluter Pays Principle being an international environmental law principle which seeks to ensure environmental protection was also adopted and integrated into most of the legislations seeking to regulate environmental pollution.

However, despite the enactment of these laws, the issue of environmental pollution persists in the Nigerian oil industry due to lack of proper enforcement.

This study was undertaken to analyze the regulatory framework of environmental pollution in the Nigerian oil industry in relation to how the polluter pays principle has been adopted and applied by existing regulations. This thesis also considers the effectiveness of the polluter pays principle in regulating environmental pollution.

Key words

Environmental Pollution, Polluter Pays Principle, Environmental Protection, Oil and Gas Industry, Oil Spills, Liability for Oil spills, Niger-Delta, Nigeria.

TABLE OF CONTENTS

ABSTRACT ... II TABLE OF CONTENTS ... III REFERENCES... V ABBREVIATIONS. ... XV

1 INTRODUCTION ... 1

1.1Research Problem ... 3

1.2Research Question ... 5

1.3 Significance and Scope of the Study ... 5

1.4 Research Methodology ... 6

1.5 Thesis Structure ... 7

2 ENVIRONMENTAL POLLUTION IN THE NIGERIAN OIL SECTOR ... 9

2.1 Oil Pollution Science ... 9

2.2 Oil Spillage Incidents in Nigeria ... 10

2.3 Environmental Impacts of the Oil Industry ... 13

2.3.1 Impacts on Livelihoods ... 14

2.3.2 Social Impacts ... 15

2.3.3 Health Impacts ... 16

2.3.4 Forced Displacements and Loss of Property ... 17

3 POLLUTER PAYS PRINCIPLE AND REGULATION OF ENVIRONMENTAL POLLUTION IN THE NIGERIAN OIL SECTOR ... 19

3.1 The Concept of Polluter Pays Principle ... 19

3.1.1 Understanding who a Polluter is ... 22

3.1.2 What is the polluter required to pay? ... 23

3.2 The Polluter Pay Principle in the Nigerian Oil Sector ... 24

3.3 Factors that affect the ineffectiveness of PPP in the Nigerian Oil Sector ... 27

3.3.1 Lack of Competent Enforcement Agencies ... 27

3.3.2 Oil pipeline Vandalisation and Sabotage ... 28

3.3.3 Prolong Judicial Process ... 29

3.3.4 Insufficient Funding of Enforcement Agencies ... 29

3.3.5 Enabling Legislations not Revised Regularly. ... 30

3.4 Effects of the Legal System on Polluter Pays Principles ... 31

4 THE LEGAL FRAMEWORK OF ENVIRONMENTAL REGULATION IN THE OIL SECTOR OF NIGERIA ... 32

4.1 Legal Frameworks in the Oil Sector of Nigeria ... 32

4.2 Statutory Frameworks and their Effects on Environmental Regulation... 33

4.2.1 Oil in Navigable Waters (ONWA) Act ... 33

4.2.2 Petroleum Production and Distribution Anti Sabotage Act ... 35

4.2.3 Merchant Shipping Act. ... 36

4.2.4 Nigerian Port Authority Act. ... 36

4.2.5 Petroleum Act. ... 37

4.3 Institutional Framework for Environmental Protection in Oil Sector ... 39

4.3.1 Nigerian Security and Civil Defence Corps (NSCDC). ... 39

4.3.2 National Oil Spill Detection and Response Agency(NOSDRA) ... 39

4.3.3 Nigerian Maritime Administration and Safety Agency (NIMASA). ... 41

4.3.4 Nigerian National Petroleum Corporation (NNPC). ... 41

4.3.5 Nigerian Meteorological Agency (NMA). ... 42

4.3.6 Federal Environmental Protection Agency. ... 43

4.3.7 National Enforcement Standards and Regulation Enforcement Agency (NESREA) ... 44

5 CONCLUSION AND RECOMMENDATION ... 45

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ABBREVIATIONS.

OECD Organization for Economic and Co-operation Development.

LFN Laws of the Federation of Nigeria

PPP Polluter Pays Principle

FWLR Federation Weekly Law Reports

NESREA National Environmental Standards and Regulations Enforcement Agency

NWLR Nigerian Weekly Law Report

SC Supreme Court

UNEP United Nations Environment Programme

NNPC Nigerian National Petroleum Corporation

SPDC Shell Petroleum Development Company Ltd.

UDHR Universal Declaration of Human Rights.

FEPA Federal Environmental Protection Agency.

ICESCR International Covenant on Economic, Social and Cultural Rights.

NOSDRA National Oil Spill Detection and Response Agency.

1 INTRODUCTION

Nigeria is statistically known as Africa’s largest oil producer. With production level of approximately 2,5 million barrels per day, it is rated the sixth largest oil producing nation in the world.¹ The oil industry in Nigeria is the primary source of foreign exchange earnings and the foundation upon which the Nigerian economy thrives. The petroleum industry accounts for an estimated ten (10) per cent of the gross domestic product. In contrast, earnings from petroleum production and exports account for about eighty-six (86) per cent of the overall export revenue.² The prominent role played by oil production and trading in the Nigerian economy has surpassed agriculture which was initially the backbone of the economy.³

Exploration and production of crude oil in Nigeria is for the most part inland; however, exploration of oil in Nigeria is expanding to deep offshores territories. A few international oil companies, and a few of indigenous ones, are actively engaged in the exploration and production oil in Nigeria, under various legal various legal agreement including joint ventures agreement, production sharing contracts, and risk sharing contracts. The exploration and production activities of these oil firms, bring about pollution of the environment in which they operate.⁴

The term environment refers to land, air, water, plants and animals or animals and the interrelationships which exist between them. The term pollution, on the other hand, refers to the discharge of toxic physical, chemical, and biological substances into the environment, which causes a potential hazard to living and non-living things. Pollution has been identified as human made or human induced man-made alteration of the quality of the environment beyond sustainable levels.⁵ Pollution may occur from natural causes or human activities and could influence human well-being and condition in many ways which include harm to human health brought about by chemical materials in air, food, water and radiation; damage to the human condition which affects plants, livestock, farm produce, soil and water, damage to the natural state of the environment as a result of noise, smoke, fumes, dust and prolong pollution which impacts may not be prompt and apparent.

It is essential to note that the oil and gas business contributes to the environmental problems in Nigeria. The sector accounts for about 90% of the country's income. This can also account for the

1Nigerian National Petroleum Corporation, 2020, Oil Production.

2 See report on Organization of the Petroleum Exporting Countries:

[https://www.opec.org/opec_web/en/about_us/167.html] (accessed on 26/2/2020).

3 Nigerian National Petroleum Corporation 2020, History of the Nigerian Petroleum Industry.

4 Emole 1998, p. 103.

5 Section 37 of the National Environmental Standards and Regulations Enforcement Agency (Establishment) Act, 2007.

country's environmental challenges, notably in the Niger Delta region, where most of the oil is produced.⁶ Environmental issues in Nigeria identified with oil industry activities began with the discovery and exploitation of oil at Oloibiri⁷ in 1958.⁸ The activities that contributes to environmental degradation by the oil companies include drilling, excavations and construction works needed for exploration and mining of petroleum, pipelines laying, and construction of flow stations and oil terminals.⁹

Oil spillage is one of the significant environmental issues in Nigeria. In previous years, oil spills caused by oil companies has been harmful to the environment and individuals which have resulted in pollution, environmental degradation, and violation of human rights. The impacts of an oil spill incidence is usually severe and often immeasurable. One of the impacts of oil spill is severe environmental pollution. The degree of contamination depends on how much oil spills into the water, the response to oil spill clean-up and the amount of oil reaching surrounding lands.¹⁰ The degree of harm is relatively proportional to the type of environment in which the oil is spilt. For example, an oil spill into a transboundary waterbody would doubtlessly cause more harm than a spill into the land. Additionally, in a circumstance where a few barrels of oil is spilt into the ocean, and the discharge was not quickly prevented, or the oil well that detonated was not promptly topped, the environmental damage is typically enormous and as such, the liability of the party in question becomes significant.¹¹

The Niger Delta region in Nigeria is among the world’s most extensive wetlands with an estimated size of 20,000 square kilometres.¹² The region has the largest oil reserves in Nigeria. According to the reports, approximately 2 million barrels of oil are extracted from the Niger Delta region on a daily basis, and about 38 billion barrels remain underneath.¹³ The Niger Delta is characterized by high biodiversity, diverse ecosystem including vast swamps, forest areas with different plant and animal species.¹⁴

The Niger Delta territory in Nigeria has vividly suffered the adverse effects of the oil spill. The spills there are as a result of many cases of pipeline vandalism or destruction of oil installations.

6 Elenwo - Akankali 2014, p. 884.

7 A Community in Ogbia Local Government Area of the then Rivers State, now Bayelsa State.

8Gina 2016, p. 2.

9 Ibid.

10 Olaniyan 2015, p. 73

11 Ibid.

12 Kadafa 2012, p. 20.

13 Isumonah 2013, p. 333.

14 Kadafa2012, p. 19.

The area is also known to experience operational oil spill often. Militants and oil hoodlums occasionally vandalise oil installation in many cases to take the oil and earn proceeds out of selling it. At the point when oil spill occurs, certain problems emerge which are significant: the necessity to identify the party responsible for the spillage; the level of liability of the polluter; the extent of damage done to the environment and necessary steps to be taken to avoid future incidents of similar nature.¹⁵

In 1999, Nigeria received the Polluter-Pays Principle (PPP) as a basis of the 1999 National Policy on the environment (reconsidered in 2016). This demonstrates Nigeria's commitment to ensure a stable environment for its residents. From that point forward, efforts have been made to infuse the PPP in numerous statutes and regulations addressing the environment. The statutes comprises of the Minerals and Mining Act 2007, Environmental Impact Assessment (EIA) Act, and the Environmental Guidelines and Standards for the Petroleum Industry in Nigeria (EGASPIN), the National Environmental Standards and Regulations Enforcement Agency (NESREA) and the National Oil Spill Detection and Response Agency (NOSDRA) are obligated with the implementation of such statutes and regulations to ensure the success of the PPP.¹⁶ Considering the long time-span since the adoption of this internationally established principle of environmental protection in Nigeria, the pollution of the environment doesn't appear to be reducing. Instead, it keeps happening repeatedly as can be seen from the loads of wastes evident in our urban communities, incessant oil spills and gas flaring in the Niger Delta.¹⁷

1.1 Research Problem

Oil spillage has adverse impacts on the environment and the quality of lives of individuals living in such areas.¹⁸ Massive oil spills pollute the wetlands and rivers, contributing to severe environmental destruction for the region. Consequent upon oil discovery in Nigeria in 1958, the nation has experienced the adverse environmental effect of oil production. The development of the nation’s oil sector coupled with a rapid increase in the population and an absence of enforcement of environmental rules has severely affected the Nigerian environment. Oil spills in Nigeria have been a norm which occurs frequently, and the associated environmental degradation has triggered conflicts between local communities and the international oil companies operating there. The

15 Olaniyan 2015, p. 74.

16 Ezeanokwasa 2018, p. 45.

17 Ibid.

18 Olaitari 2015, p. 2.

previous decade ushered in efforts from environmental groups, the Federal Government and international oil companies as they sought to find ways of ameliorating the effects.¹⁹

While history did not reveal to us as to when the environment became a subject for legal protection, but the origin could be traced as a result of the need to develop world science and technology.

These, thus, resulted in competing world economies concerning international sovereign, economic, political, and social aspirations of nations. The component of competition in the exploration and exploitation of natural resources to accomplish economic development and the quest for legislative powers have a deteriorating impact on the environment, and on human lives. In a bid to protect the environment, it is essential to enact laws and regulations against activities that may bring about environmental deterioration. Therefore, legislating against environmental harm became imperative because the environment is the most important source of national and international development and ought to be shielded from damage, deterioration, and destruction. Hence, regulations to abate environmental pollution have been set up to ensure not just environmental protection, but additionally to oversee it for human survival.²⁰

Be that as it may, the vital tool needed to achieve these goals is the application of the polluter pays principle. This environmental protection principle has been adopted and integrated into most of the legislations. However, despite the enactment of these laws, the issue of pollution persists in the Nigerian oil industry. The question of whether the polluter-pays principles will be an effective regulation to oil spills is essential. The reason is, there is an urgent need to drastically reduce and further avoid incidences of oil spill in Nigeria because of the numerous adverse effect on the environment.²¹

Most of the available literature has concentrated their research on how environmental pollution is being regulated in the oil and gas industry. Little attention has been given to analysing the connection between the regulatory framework, and the polluter pays principle and how it has been applied and implemented. Therefore, this research is significant in that besides examining the regulation of environmental pollution in the Nigerian oil industry; it goes further to scrutinise to what degree the rules have reflected the polluter pays principle and how effective the policy has helped in controlling environmental pollutions.

19 Nwilo - Badejo 2005, p. 568.

20 Onyeabor et al. 2017, p. 186.

21 Olaniyan 2015, p. 74.

1.2 Research Question

Achieving global sustainable development is connected with the enactment and enforcement of regulations on environmental administration. This is because most environmental legislations are rule-oriented and not management-oriented, as they will in general stipulate punishments for breach as against incentives intended to encourage the rational use and protection of the environment.²² The Nigerian government, throughout the years, had embraced statutory provisions to curb oil spillage. Despite the statutory regulations, oil spillage has lingered on and might be credited to the flawed or ineffective implementation and enforcement of the legislations. The issue of environmental pollution has not ceased to be prominent in the Nigerian oil industry despite the enactment of different laws, and the application of the polluter pays principle. Therefore, this research seeks to expound factors that challenge the adequacy of the Polluter Pays Principle in Nigeria by evaluating how the PPP has been applied to the existing regulations.

The following research questions will be answered upon the completion of this study:

i) What are the existing regulatory frameworks established and adopted to address environmental pollution emanating from the Nigerian oil industry?

ii) How effective is the application of the polluter pay principle in resolving the issue of environmental pollution in the Nigerian oil sector?

iii) What are the factors that affect the inefficiency of PPP and the potential solution to it?

1.3 Significance and Scope of the Study

This study aims to solely examine from a legal perspective, the effect of polluter pays principle in the regulation of environmental pollution in the Nigerian oil sector. Other objectives of this research are as follows: 1) reviewing the literature on polluter pays principle and, 2) critically evaluating the efficacy of the polluter pays principle and, 3) determining to what extent does the polluter pays principle reflect the regulation of environmental pollution in the oil sector of Nigeria.

Legislation as an instrument is generally accepted as a means of regulating environmental pollution.

PPP as a policy instrument for national authorities should facilitate the internationalisation of the cost of environmental pollution considering the holistic approach that the polluter should be held liable to cover the pollution cost, with proper consideration to the public good.²³ Considering the

22 Kolawole 1994, p. 6.

23 Rio Declaration on Environment and Development in ‘Report of the United Nations Conference on Environment and Development’ UN Doc A/CONF.151/26 (vol I) (12 August 1992) Principle 16.

importance of laws and policies in regulating environmental pollution, the rationale for narrowing the context of this research to the polluter pays principle and regulation of environmental pollution in the oil sector is based on the claim that creating an efficient and effective approach (legally and judicially) to environmental pollution can enhance the efficacy of PPP, ensuring a clean and safe environment. Nigeria was chosen for this study for being the largest producer of oil in Africa.

Nigeria has myriads of oil exploration and production activities that make it susceptible to environmental pollution. Also, access to relevant documents and numerous reports on the ineffectiveness of regulation of environmental pollution in Nigeria brought about the concentration on the Nigerian oil sector.

This study is significant in that it seeks to create awareness on understanding the impact of PPP in Nigeria. The study is restricted in scope as it focuses mainly on issues relating to the polluter pays principles and legislative set-up of environmental pollution in the Nigerian oil industry. To this end, this study is limited to addressing research questions and, by doing so, helping to contribute to the achievement of objectives of the research. While this thesis can be classified generally in the area of environmental pollution regulation, it differs in the manner that this only reflect parts of the polluter pays principle to determine its role in ensuring environmental sustainability.

In this research, no effort is made to assess and examine the role of governmental agencies in environmental protection in the oil and gas industry nor to proffer ideas to stakeholders to enhance efficiency. Quite a number of literary works has been done to deal with the subject matter. This research centres preferably on efficiently looking at the regulation of environmental pollution in the Nigerian oil sector and how it reflects the PPP towards having a safe environment while ensuring polluters are held accountable for their actions.

1.4 Research Methodology

This research adopts a doctrinal approach which seeks to identify and analyse the regulatory regime in the Nigeria oil industry. It also analyses the polluter pays principle in terms of application, implementation, and effectiveness. This research relies on information from both primary and secondary sources. These includes various legislations and case law while the secondary sources include academic sources like textbooks, journals, articles, official materials from governments and international organisations, conferences papers, newspapers, etc. Database of different national environmental regulatory bodies, international environmental groups, and oil firms will also be accessed for official statements, reports, and documents.

The approach used to garner the information provided in this study is via an assessment of literature on PPP in the regulation of environmental pollution in Nigeria and also the examination of pertinent PPP legislation in Nigeria. The major source of information are the environmental protection legal framework which contains the empowering legislations on which the PPP framework is structured.

These documents help give some essential bits of knowledge about the research questions.

The trend in the regulating environmental pollution in Nigeria has been a reoccurring issue. As a result, there is an increasing amount of literature on issues about regulating environmental pollution in the oil industry. This research is wholly based on the literature reviewed in the course of the study. This methodology is quite relevant and useful as it gives an insight into the research question. The database utilised has helped in understanding how environmental pollution in the oil sector has been regulated and how the polluter pays principle has evolved in the Nigerian legal system, its applicability and also the challenges facing the proper implementation of the policy.

Furthermore, this research also adopts a review technique to conclude on how much the regulation of environmental pollution in Nigeria's oil sector has reflected the principle of polluter pays. This assessment also provides the basis for considering whether or not the polluter pay principle has been effectively implemented to the point where polluters pay.

1.5 Thesis Structure

This thesis is structured into five chapters. The following parts of this thesis are outlined as follows:

Chapter Two expounds environmental pollution in the Nigerian oil industry, including an oil spill, its form and impact on both human health and the environment. This helps to understand the devastating effects of environmental pollution from the activities of the oil companies.

Chapter Three presents an in-depth analysis of the polluter pays principle and its application. It discusses further the fundamental issues like who a polluter is? Who is saddled with the commitment of paying for the pollution, what should be paid and in what form should payment be made? Chapter three concludes by examining the factors affecting the effectiveness of the PPP.

Chapter Four of this thesis centres on the legal framework regulating oil spillage in Nigeria by answering questions like how oil spillage is monitored and what are the regulations involved. The chapter also highlights some weaknesses in regulating environmental pollution in Nigeria.

Chapter 5 proffers the conclusion of the thesis as well as possible recommendations. More so, research questions are answered taking cognisance of the impacts of PPP in Nigeria and its capacity as an essential tool to regulate environmental pollution in Nigeria.

2 ENVIRONMENTAL POLLUTION IN THE NIGERIAN OIL SECTOR

This chapter explains the nature of environmental pollution in the Nigerian oil industry. It focuses on the problem of oil spills, its form and impact on both human health and the ecosystem. This analysis is offered as a background for understanding the nature of the devastating effects of environmental pollution from the operations of the oil companies.

One of the critical environmental issues in Nigeria relates to the oil industry.²⁴ Nigeria is confronted with various anthropogenic risks, such as oil spillage which have devastating effect on its victims and the environment at large.²⁵ For example, only about ten incidences of oil spills was recorded in Europe within a span of 40 years, whereas Nigeria recorded about 9,343 incidents in 10 years ²⁶ at an average of almost a thousand spills annually, the highest levels of spills at a global scale.²⁷ Research has additionally indicated that the amount of oil spilled in Nigeria in five decades was in between 9 -13 million barrels, proportionate to 50 Exxon Valdez oil slicks of 1989 (260,000 barrels).²⁸ Consequently, Nigeria was ranked among the world’s ten most polluted countries due to the negative impact of oil spills on the environment, water resources and farmlands of the oil communities of Nigeria.²⁹

As a background to the analysis on the impacts of oil pollution, this section begins with a brief overview of environmental pollution science.

2.1 Oil Pollution Science

Environmental pollution is one of the present-day challenges confronting humankind and other life forms on our planet today. Environmental pollution is characterised as contaminating the natural quality of the environment to a level that severely affects normal natural processes. Pollutants can be referred to as natural substances or energies, but they are viewed as contaminants when above acceptable levels. Examples of such pollutants are crude oil, gas, sewage, plastics etc. Importantly,

24 Oshienemen et al. 2018, p. 1055.

25 Ibid.

26 International Amnesty 2015, Nigeria: Hundreds of oil spills continue to blight Niger Delta.

27 Izuora – Agudos 2015, Nigeria records 9,343 oil spill incidents in 10 years.

28 Wolfe et al. 1994, p. 567.

29 See report on the Most Polluted Countries according to World Population Review: Available on

[https://worldpopulationreview.com/country-rankings/most-polluted-countries]. (Accessed on 21/2/2020).

any utilisation of natural resources greater than the ability of nature to remediate itself may also result to pollution of the environment.³⁰

Oil spillage is a form of pollution that causes negative impacts on the environment and living things, such as human being, due to the release of chemical substances that composed of crude oil and its products, most of which include different hydrocarbons.³¹ According to Wout, an oil spillage is the release of hydrocarbon present in petroleum into the ecosystem, particularly the marine environment, due to human activity.³² Generally, marine oil spillages occur, where oil is discharged into the sea, yet spillage may likewise happen on land. Oil spillage may result from discharges from oil tankers, drilling wells, as well as fuel utilised by bigger ships, for example, the spill of any waste oil. The effect of oil pollution can have dire economic, financial, social, and environmental consequences on society.³³ Subsequently, oil spill mishaps have been a subject for media attention and political turmoil, bringing environmentalists together to express their concerns about government reaction to oil spills and proffer measures to prevent a recurrence.³⁴

2.2 Oil Spillage Incidents in Nigeria

Environmental pollution caused by oil spillage has happened in different parts and on various occasions along the Niger Delta coast.³⁵ In Nigeria, the prominence of the oil industry since the 1960s has contributed to an upsurge in environmental disturbance; particularly in the oil-producing regions of the country.³⁶ The oil industry’s development has caused environmental damage and degradation from explorations and drilling activities, gas flares, effluents from the refinery and large spillages because of handling operations.³⁷ Ever since oil was discovered in in 1956 in the River Niger along the coast of Nigeria, oil production has continuously surpassed agribusiness as the dominant source of income.³⁸ Between 1979 and 1996 as indicated by the Department of Petroleum Resources (DPR), 4647 incidents of oil spill was reported amounting to an estimate of

30 Wolfe et al. 1994, p. 567.

31 Environmental Pollution Centre 2017, Oil Spill Pollution.

32 Wout 2016, p. 381.

33 Ibid.

34 Ibid.

35 Suinyuy 2011, p. 12.

36 Odeyemi- Ogunseitan 1985, p. 223.

37 Ibid.

38 Ibid.

about 2,369,470 barrels of oil spilled.³⁹ From this estimation, approximately 1,820,410.5 barrels (77%) could not be recouped and were lost to the environment.⁴⁰

Statistical reports for the period 1976-1996 indicated that about 6%, 25% and 69% of the total oil spilled in Nigeria's Delta region are in freshwater and swampy areas. Many barrels of oil have been released into the environments from oil tanks and pipelines. This is as a result of lack of frequent and adequate maintenance of oil tanks and pipelines.⁴¹ Some major coastal spills are the 1978 GOCON's Escravos spill estimated at 300,000 barrels. Forcados Terminal's 1978 operational loss of about 580,000 barrels and Texaco Funiwa-5 blow-out of about 400,000 barrels in 1980. Another instance of oil spillage is the 1982 Abudu pipeline with about 18,818 barrels and the Jesse Fire Incident, that resulted in the deaths of about a thousand people, and the Idoho oil spillage of about 40,000 barrels in 1998. The most prominent case of all Nigeria’s oil spillages occurred on January 17, 1980 spilling about 37million litres of oil into the environment. The Funiwa 5 offshore station explosion triggered this spill. The highest reported spillage happened between 1979 and 1980 with a net volume of oil spilled estimated at about 694,117.13 barrels and 600,511.02 barrels, respectively.⁴²

According to Odu and Offodum, the Texaco Oil Company spillage released more than 40,000 barrels of oil in the Niger Delta region causing pollution of about 1,200km2 of the region.⁴³ The oil spill affected a total of 321 communities with a population size of 320,000 people. This resulted in approximately 180 deaths as 300 individuals were clamped down with various diseases through contaminated water and food.⁴⁴

Although, oil spillage is not only caused by the lack of maintenance and replacement of pipelines and tanks, illegal oil bunkering by the public can also be a responsible factor. In the process, they damage oil pipelines in an attempt to extract oil. According to Shell Development Petroleum Company (SDPC), between 1976 and 1995, sabotage represented over 60% of the total oil spillage.

The rate has grown over time, considering the amount of spills caused by corrosion and has been regarded among what damages oil pipelines.⁴⁵ Oil spills have occurred frequently and the resulting environmental degradation has created tension between the inhabitants of the region and the oil

39 Badejo - Nwilo 2005, p. 2.

40 Oyem A. Christian call for Action on Nigerian Oil Spill. Sage-Oxford’s Christian Environmental Group. (2001).

41Suinyuy 2011, p. 13.

42 Ibid.

43 Odu – Offodum 1986, p. 285.

44 Ibid.

45 Shell Development Petroleum Company, Continuous Stakeholders Consultation for Sustainable Development, Year 2000 and Beyond, 2000, p. 44.

firms.⁴⁶ However, lack of proper execution of the terms of agreement or memorandum of understanding between the communities and the oil industries have been regarded as the causative factor for the menace.⁴⁷

When oil spillage occurs, the extent of damage can be easily accessed when evaluated^.48 This is based on the amount of oil spilt and the degree at which it happens whether as a minor, medium, significant incidents.⁴⁹ Research shows that small spill occurs when the rate of discharge is under 25 barrels in rivers and lakes or under 250 barrels on land, offshore or coastal waters. Such amounts are not always considered a public health risk.⁵⁰ The spill must be 250 barrels or less in inland water for the medium spill, or 250 to 2,500 barrels on land, offshore and coastal water. Whereas, the discharge into inland water for major spills amounts to over 250 barrels.⁵¹ In 2010, 537 spills and 17,658.10 barrels were recorded. In 2011, 673 spills 66,906.84 barrels were recorded respectively.

In 2012, 844 spills and 17,526.37 barrels were recorded. In 2013, 522 spills and 4,066.20 barrels while in 2014, 1087 spills and 10,302.16 barrels of oil were spilled.⁵²

Oil spills which are not cleaned up will affect the nearby environment, spreading over a vast region and contaminating both terrestrial and marine resources. Improper remediation activities can exacerbate things. Oil pollution can also contribute to loss of land value and loss of use of arable land.⁵³ Oil spills can also be an expensive public burden because they may, require the resettlement of specific communities. Loss of arable land, for instance, results into low income for farmers while the mental and social issues related with loss of ancestral land, displacement and resettlement, loss of standard environment and disruption of a healthy life.⁵⁴ The effects of oil spillage are severe irrespective of whether it is accidental or deliberate. The consequences come with an enormous loss which includes the deterioration of the environment, economy, and harm to human lives.

46 Ibid.

47 Uwhejevwe-Tobolo, Samuel. Youths in the Niger Delta Region and Oil/Gas Company. Available at [http://www.gamji.com/article4000/NEWS4528.htm]. (Accessed on 21 January 2020).

48 Ubong – Gobo 2010, p. 73.

49 Ibid.

50 Ntukekpo 1996, p. 45.

51 Ibid.

52 Department of petroleum resources (DPR) 2014, Oil and Gas Annual Report.

53 NDES. Niger Delta Environmental Survey; Final Report, Phase I. Environmental Resources Managers Limited, (1997), p. 5.

54 Ibid.

2.3 Environmental Impacts of the Oil Industry

Crude oil is the world's most impactful energy source.⁵⁵ Other than being a vital energy source, oil products are a component of several consumer products.⁵⁶ Despite its benefits, the oil industry is also capable of causing significant harms to the environment.⁵⁷ The common environmental impacts related to oil industry include: groundwater contamination, acid rain, greenhouse effects, poor water quality, biodiversity loss, obliteration of ecosystem among others.⁵⁸ Large quantities of harmful and non-toxic waste are generated during oil and gas extraction, refining, and transportation.⁵⁹ By- products such as nitrogen compounds, sulphur compounds, and spilt oil can contaminate air, water, soil, and living things at destructive levels.⁶⁰ Global warming, increase in sea level, ocean acidification, are global changes caused by the oil industry activities through discharge of greenhouse gases and carbon compounds.⁶¹ With those mentioned above, it is imperative to discover approaches to align industry development with environmental regulation and protection, that is, sustainability of the environment.⁶² However, regardless of its possible environmental risk, the oil industry still plays an important part in the society, generating job opportunities and a major source of revenue for government.⁶³

Oil industries stand to benefit significantly by embracing proactive environmental strategies.⁶⁴ Most organisations in the oil industry still do not adopt practices that encourages prevention of pollution.⁶⁵ Instead, their pollution prevention strategies are aimed at ensuring that the regulations proposed by the environmental authorities are complied with, thereby adopting a reactive approach instead of a proactive approach as a way to deal with environmental management.⁶⁶ Nowadays, efforts to ensure sustainable development goes exceeds ethical and moral obligations and is now a basic requirement from the society. This level of commitment serves as a major constraint to the

55 Jacqueline - Emilio 2014, p. 185.

56 Ibid.

57 Ibid.

58 Ibid.

59 U.S. Environmental Protection Agency, Environmental Protection Agency enforcement targets flaring efficiency violations. Available on [https://19january2017snapshot.epa.gov/sites/production/files/documents/flaringviolations.pdf]

(Accessed on 2/8/2020)

60 Bautista - Rahman 2016, p. 94.

61 Stohl et al. 2013, p. 8845.

62 Nemerow 1995, p. 125.

63 Ibid.

64 Environmental Protection Agency – Office of Compliance (1995). Profile of the Petroleum Refining Industry, Washington, D.C., EPA [A comprehensive text about the environmental aspects related to the oil refining industry].

65 Ibid.

66 Environmental Protection Agency – Office of Solid Waste (1995). Waste Minimization for the Petroleum Refining Industry, Washington D.C., EPA [This document presents many information about the soil pollution caused by the oil industry].

growth of organisations as various end users may be influenced by the poor perception given to organisations that causes pollution.⁶⁷

Oil spillages have various effects on the environment and the economy which could result into disaster.⁶⁸ Disaster has been defined as a state of crisis happening because of human-initiated or common dangers that bring about critical changes in the environment over a period of time.⁶⁹ According to Parker and Handmer, disaster can be regarded as abnormal natural or man-made occasions, such as event achieved by the failure of technological systems, which temporarily affects the response capacity of human systems and causes an economic crisis, loss of lives and property.⁷⁰ The knowledge of where an oil spill ends is the fundamental way to determine the magnitude of an oil spill.⁷¹ The severity of any spillage is not based on the volume and size of the spill but the impacts.⁷²

2.3.1 Impacts on Livelihoods

Natural resources are required to support the livelihood of farmers and fishers.⁷³ Often, the community in the oil-producing areas depend on natural resources such as water and forests for sustainable living.⁷⁴ Oil spillage that occurs on water and land compromise these methods of subsistence. Land oil pollution destroys crop and harms the viability and profitability of farmlands used by farmers. On the other hand, oil pollution on water destroys fishery and contaminates potable water thus negatively impacting the quality of life of individuals in these communities.

Also, the loss of sources of livelihood caused by the disaster has resulted in unemployment.⁷⁵ Sadly, the vast majority of the individuals affected are poor individuals and those who depend on fishing and agribusiness to survive.⁷⁶ The damage caused by oil operations has impeded the daily activities of the coastal region, thereby affecting the occupations of the poor in the community. Furthermore, oil spillage on land damages soil vitality driving in diminished profitability of farmers in the region.⁷⁷ Evidence shows that when compared to unpolluted soils, the productivity of the polluted

67 Ibid.

68 Chavis Jason 2006, The Effects of Oil Spills.

69 Shaluf 2007, p. 710.

70 Parker – Handmer 2013, Hazard management and emergency planning: perspectives in Britain.

71 Smith 2013, Environmental hazards: assessing risk and reducing disaster.

72 Ian – Baker 1998, p. 18.

73 Ejiba et al. 2016, p. 6.

74 Ibid.

75 Amnesty International 2009, p. 69.

76United Nation Development Project 2006, Niger-Delta Human Development Report.

77 Nseabasi 2012, p. 98.