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

Abstract

Oil spillage has plagued Nigeria since petroleum operations began in the country. The problem is often overpowering especially in cases where the spill arises from acts of strangers or ageing pipelines. In a bid to manage the situation, relevant statutes and administrative regulations on the subject were prompted, with provisions for compensation of the victims of oil spillage and penal sanctions for negligence of oil companies. However, the inadequacy of compensatory provisions in the relevant legislation, strict requirement for proof of negligence, the question of locus standi in the tort of public nuisance, and the multiplicity of defences available to defendants in cases involving oil spillage have all combined to defeat the objectives of the reversal efforts put forth in Nigeria. In the long run, the affected environments and the host communities have been the worse for it. This paper is predicated on the background of the foregoing. Accordingly, the paper will show that the establishment of an Oil Spillage Liability Trust Fund in Nigeria is both timely and inevitable if effective remediation of the impacted environment will ever be possible. In the main, it will be shown that the operation of an Oil Spill Liability Trust Fund is ultimately both time and cost effective in the restoration of the environment and compensation of individuals adversely affected by oil spillage. It will also be shown that the functions of National Oil Spill Detection and Response Agency, vested with the responsibility to co ordinate the implementation of the National Oil Spill Contingency Plan (NOSCP) for Nigeria, in accordance with the International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC) 1990, can only be effectively carried out with the availability of stable funding. In so doing, the long essay will consider relevant legislation governing liability for oil spillage in Nigeria, as well as the applicable enforcement mechanisms. A critical review of the NOSDRA Act will also be undertaken with a view to bringing out its inherent limitations in coping with the overwhelming intricacies of oil spillage in Nigeria.