Oil contributes significantly to the Nigerian economy since vast reserves of crude oil was discovered in the 1950s. Currently, Nigeria earns over 95 percent of its foreign exchange from the sale of crude oil in the global market; other petroleum products obtained from crude oil have several industrial and domestic uses. Though petroleum products make life easier, it causes both air and water pollution for the environment.
Abstract
Oil contributes significantly to the Nigerian economy since vast reserves of crude oil was
discovered in the 1950s. Currently, Nigeria earns over 95 percent of its foreign exchange from
the sale of crude oil in the global market; other petroleum products obtained from crude oil have
several industrial and domestic uses. Though petroleum products make life easier, it causes both
air and water pollution for the environment.
This paper traces the history of oil in Nigeria and interrogates the impact of oil on socio-
economic development of the country. The paper further examines the operations of the oil
industry, highlighting the remarkable changes in the industry over the years. The paper asserts
that Nigeria continues to experience remarkable increases in operational activities in oil and gas
exploration; exploitation; refining; and products marketing. The onshore activities centered
mainly in the Niger Delta area which generated massive wealth for the nation. However, it has been acknowledged that the natural blessings of this area, known for its difficult land terrain of swampy rain and mangrove forests, has made the greatest contributions to the socio-economic development of the entire country especially in the areas of foreign exchange earnings, provision of job opportunities, physical infrastructure in education, health, communications, and power.
Despite this leap, the Oil and Gas industry has created serious problems of health and environmental pollution for the country in general and the host communities in particular.
Conclusively, the paper identifies strategic areas of preventing and controlling pollution in the
affected communities.
Keywords: Environmental Management, Oil and Gas Industry, Sustainable Peace and
Nigeria.
Introduction
The history of oil in Nigeria started in 1908 when a German firm known as the Nigerian Bitumen
Corporation drilled 14 wells in areas which, is today, referred to as Lagos state (Soremekun K,
1995). Nigerian Bitumen Corporation stopped operation following the outbreak of the First
World War in which both Germany (the company’s parent country) and Britain, (Nigerian’s
colonial master) were involved.. Nigerian Bitumen Corporation’s oil well drills marked the
beginning of Nigerian’s journey into the exclusive club of world producers of oil. Oil plays a vital role in international politics and economy and several times, international communities
have witnessed a hike in oil prices whenever an oil producing country is involved in crises.
Nigeria, as a mono-cultural economy depends heavily on oil and most times its foreign policies
fluctuates as the price of oil fluctuates (Onoh,J.K 1999).
The role of oil as the dominant source of energy supply since World War II (1939-1945)
has made it the most crucial commodity in international economic relations. At independence,
the Nigerian economy was mainly based on Agriculture (Nwangu, C 2007). During the agrarian
era, Nigeria obtained about 30% of its revenue from the agricultural sector. At that time, oil was
found in a small quantity and this has really affected Nigerian’s foreign policy because Nigeria
depended so much on external aid, donor from international monetary fund (IMF) and World
Banks(http://www.fpif.org/paper/nigeria2003htm1).
However, when the Yom-Kippur war broke out in 1973 between the Arabs and the Israeli
in the Middle East, the Arabs placed oil embargo on Western Europe and USA. This led to a
quantum leap in oil prices in the international market and Nigeria became a beneficiary of the
hike in oil prices and consequently became rich from this oil boom. Gradually but steadily, the
Nigerian economy was transformed from an agro-economy to a petrol-dollar economy with
Nigeria no longer begging for financial aid from international monetary lenders like International
Monetary Fund (IMF) and World Bank which dictated their terms as well as the tune of the
direction of the country’s foreign policy.
Following Nigeria’s good fortune at the international oil pricing from the early 70s, the
country moved from merely getting aids to participating in the economic upliftment of other
African states. Nigeria, for instance, is presently involved in the development of the steel
industry in Guinea and has invested $9.3m (http://www.thenation.com/20020422/silverstein).
Apart from participating in the joint cement project at Onogholo in Dahomey, this country has
also ploughed $27m into that country’s sugar industry .
In Africa, Nigeria’s economic efforts have been substantial. In 1964, she formed the
Chad Basin Commission with contiguous neighbours (Cameroun, Chad and Niger) to exploit the
fishing and irrigation potentialities of Lake Chad (http:www.thefreedictionary.com). Nigeria is
also a member of the nine-nation River Niger Commission. However, Nigeria’s most significant
contribution towards African Economic Integration came in in the formation of the 14-nation
Economic of West Africa States (ECOWAS), the Charter of which was formally signed in Lagos
on 30th May, 1975. The aim of ECOWAS was to “promote co-operation and development in all
fields of movement and residence within the Community ”
Theoretical Framework
This study adopted the theory of relative deprivation by Ted Robert Gurr. His book Why
Men Rebel (1970) emphasized the importance of social psychological factors. The idea of
relative deprivation has been used either to measure fairness, inequality, or social justice, or to
explain grievance, social hostility, or aggression. Surely relative deprivation seems to underlie
much violence. We must understand relative deprivation as creating the "potential for collective
violence." This is because relative deprivation is a frustration that leads to aggression. This we
could see in the case of the Niger delta which remained impoverished despite its huge
contributions to the Nigeria economy. The oil and gas exploration and production activities by
multinational oil companies have caused severe pollution of the ecosystem in the Niger Delta.
Environmental degradation are often linked to the process of development and its effects are the result
of human activities which have devastating consequences on the environment and are harmful on
human beings, animals and plants and can be passed on to future generations.
Nigeria before Oil Boom
Before the discovery of crude oil in Nigeria, Nigeria’s economy thrived on agriculture.
The domestic and external economy depended solely on the enormous potential, productivity and
vitality of agricultural commodities. Available historical records, reveal that palm oil became an
export commodity from Nigeria as far back as 1558 and by 1830, the Niger-Delta which now
produces crude oil, had become the major source of palm-oil, a product that dominated Nigeria’s
export list for over 50 years. Cotton joined the export list in 1856, while cocoa was introduced in
1895 and it became an export crop along with rubber, groundnut, palm kernel and benniseed.
These cash crops formed the main source of revenue, export and foreign exchange for the
government to provide social and economic infrastructure (Tell, Nigeria 2008). Extant literature
shows that 7 percent of the Gross Domestic Product (GDP) came from agricultural products in
1950, as against 1.1 percent from mining and crude oil.
At independence in 1960, more than 70 percent of exports came from agriculture while 95 percent of the nation’s food needs were locally produced. Also, of the N2.247 million GDP recorded in 1960, mining sector including crude oil, contributed a mere 1.2 percent. By 1966 when the GDP increased to N3.375 million, shares of crude oil had risen four fold to 4.8 percent.
In 1970 GDP stood at 48 million, out of which crude oil contributed only 7.5 percent. The dominant role of agriculture in the nation’s economy continued till 1966 when its contribution stood at 66 percent, compared to 1.2 percent from minerals. Ordinarily, crude oil component in GDP may appear insignificant at that point in time, but it did register a growing phenomenon that turned out to change the structure and direction of the economy. But the change appeared not to have been for the better (ibid) because as at 2006 when crude oil accounted for 61.2 percent of N18.1 trillion GDP (CBN annual report 2006) and 80 percent of budget revenue, there was no direct correlation in the improvement and quality of infrastructure and standard of living of the people.
At the regional levels, the economy recorded tremendous self-sustaining growth and expansion before crude oil became the main stay. Revenue from agriculture was appropriately used to build landmark social and economic infrastructure in addition to providing basic services like education, health, water and electricity supply. The then free education programme in the western region was funded entirely from proceeds that accrued from cocoa, rubber and palm oil,
cotton, groundnut, and rubber. The nation appeared self sufficient in food security before the era of crude oil. Agriculture provided 95 percent of the food requirements and food never appeared on the country’s import list until the early 1970s when crude oil had already upstaged agriculture (Tell, Nigeria 2008). Primarily, both law and order were effectively maintained and that culminated in a peaceful co-existence between the populace and the colonial administration
(ibid).
Impact of Oil on Socio-Economic Development in Nigeria.
Nigeria is an oil-dependent rent-seeking economy. Since the end of the Nigerian Civil
War in 1970, especially from the time of the quadrupling of the global price of petroleum in the
1973/1974 period, Nigeria’s dependence on a single commodity has become near absolute.
Becoming the richest African nation in the mid-1970s (in the wake of the Arab oil embargo
against select European countries and the United States), successive Nigerian governments
abandoned the development of the other productive sectors such as agriculture, manufacturing,
and solid mineral extraction, among others, in favor of increased oil production which was
fetching considerable revenue (Alade Fawole W, 1999). As of today, despite valiant effort to
diversify the sources of external revenue for the country, petroleum alone still accounts for more
than 80 percent of external revenue receipts into the coffers of the government. Despite available
reserve of natural gas, the gas sector has not yet been adequately exploited to bring substantial
revenue into the economy. The flaring of natural gas with its far-reaching environmental and
ecological implication remains a major daily challenge. Nigeria’s overdependence on a single
commodity has led to regular depreciation of her fortunes in the global oil market and her
susceptibility the international politics of energy (Ibid).
Nigeria’s rich oil resource is a blessing to the economy but its relentless exploitation in
the last 60 years or so has resulted in gross environmental spoliation and concomitant socio-
economic hardship for the people of the oil-bearing communities of the Niger-Delta. The major
spark was lit during the Military Administration of late General Sani Abacha, by the activities of
the Movement for the Survival of the Ogoni people (MOSOP) championed by Social Activist
Ken Saro Wiwa which demanded just reparation for the devastation of their environment and the
long year of political, social and economic neglect and marginalization meted out to them by the
Nigerian state(ibid). General Sani Abacha’s reaction was the condemnation and hanging of
Ken Saro-Wiwa and eight other Ogoni Minority leaders. The resultant radicalization of the
peoples of the Niger-Delta by the Ogoni example led to the incessant disruption of oil
exploration activities of the major multinational oil corporations, periodic hostage-taking,
blackmail, general hostility and violent conflict in the region. After General Abacha’s death in
1998, the new civilian dispensation inherited this culture of violence, hostage-taking, abductions,
seizure of oil flow stations and constant disruption of oil exploration activities in the Niger-
Delta. Therefore, the new government had to address the situation, especially since its revenue
receipts depended considerably on petroleum. It was also necessary to stem the tide of violence
and insecurity in the oil-producing areas as a way of restoring investors’ confidence in the
Nigerian socio-economy (AladeFawole 2003).
Expectations that the oil industry will provide a pull factor for the acquisition of the
practical manpower and technological transfers for Nigeria’s industrial development
programmes, remain high because the oil industry offers forward and backward linkage effects for any economy. In Nigeria, the oil industry has the largest number of trained engineers and
managers.
It has been projected that energy consumption will increase over the years with energy
sources apart from oil accounting for a large share of total energy consumption. Even though the
share of energy consumption assigned to oil is projected to decline, it remains the major energy
source for the market economies. Presently, crude oil supplies are copious but in future it could
become a cause for concern. The future of the crude oil market is also influenced by the
international financial markets.
In view of this, it is important to know the underlying supply and demand forces in the oil
market, and the sensitivity of the oil market shocks in the basic assumption. Through such
sensitivity analyses, a range of oil price projections has been estimated to capture a range
reasonable prices over the years.
Even this range of prices does not capture extreme market scenario such as a supply
disruption, or an oil price war, which could easily cause prices to fall. . Though heavily
dependent on oil as a primary energy source, developing countries are expected to make effort to
exploit domestically produced energy sources in order to reduce oil import and conserve foreign
exchange. However, efforts to reduce oil dependency could be hampered by inability to pay for
projects to create energy alternatives such as nuclear power plants and national gas pipelines.
Even with the drop in oil prices, the current account situation in many countries remains serious
for many commodity- exporting nations that have seen the volume and prices of their exports
decline considerably.
There is no doubt that the oil industry has contributed immensely to the overall growth of
Nigeria’s economy. In other words, Nigeria’s description as the fastest developing country in
Black Africa would not have been possible without the impact of oil industry. There is more
prospects of positive effects on the economy in view of the enormous oil reserves in Nigeria.
Currently, the oil industry contributes over 90% of Nigeria’s national income and over 85% of
Federal government revenue because of the decline in Nigeria’s traditional export products such
as cocoa, palm produce, groundnuts and timber.. During the last decade, Nigeria’s Gross
Domestic Fixed Capital Formation (GDFCF) has also experienced a tremendous growth from the
oil industry. The impact of oil exports on Nigeria’s payment and reserve positions may not be
appreciated until the contribution of oil and non-oil exports to Nigeria’s balance of payment positions are analyzed and Nigeria’s external reserves have also grown over the years
(http://www.ceddert.com.nigeriaforeignpolicy).
Operation of the Nigeria Oil Industry
The operations of Nigeria’s oil industry are in three major areas: crude oil exploration
and exploitation (production); oil refining; and petroleum products transportation and marketing;
Crude Oil Exploration and Production: In Nigeria, Geologists are employed to explore for
crude oil and natural gas and to help develop proven reservoirs. Crude Oil occur at a depth of
between 200 — 300 meters and offshore at a depth of about 200 meters. Below ground level,
usually with associated gas, condensates and tar sands. Extensive exploration activities confirm
that petroleum exists in seven prospective basins such as Niger Delta Basin, Anambra Basin,
Sokoto Basin, and the Benue trough, Condensate deposits are in the southern eastern shelf. Tar
sand deposits have been discovered in Ogun, Ondo, and the western fringes of Edo state (Tell
Nigeria, 2008).
Nigeria’s proven oil reserves now stand at approximately 30 billion barrels of oil
equivalent. Present Commercial activities in oil exploration and production are concentrated in
the Niger Delta Basin and the continental shelf. These activities are mainly onshore in the dry or
swampy lands of the Niger Delta Basin and deep offshore location of the Dahomey Basin.
Relatively small field’s characterize Nigeria’s crude oil production; producing 500 - 5,000
barrels per day. About 65% of the oil produced is light sweet crude; very high quality crude. In
1992, mobile’s Oso condensate field came on stream with approximate average production of
110, 000 bpd. Shell is responsible for over 50% of the crude oil produced in Nigeria, from it’s
over 100 different fields. The oil reserve of shell stands at over 11 billion barrel per day.
Mobil and Chevron joint ventures come next to shell. Mobil producing Nigeria operates
offshore from Eket in Akwa-Ibom State, while Chevron Nigeria is principally an offshore
producer with its operation oil base at Escravos, Delta state. The total combined average
production, export and local consumption of crude oil, show a mean annual production, export
and domestic consumption of 642, 476, 750 barrels, 574, 190. 890 barrels and 66, 046,680
respectively, between 1970 and 1997. While the export of crude oil averaged 89.21% annually,
only an average of 10.50% of production was consumed locally (CBN Economic and Financial
Review Vol. 34 ).
During the same period, 1970 - 1997, the total gas production (local consumption and
flared associated gas), show a mean annual production of associated gas, domestic consumption
and flared associated gas of 23,261.36 million M3, 3, 673.43 million M3 (14.86%) and
19,390.75 million M3 (84.60%), respectively. The proportion of gas production consumed
locally has been estimated at an average of 14.8% while average flared gas stood at 84.60%.
Refining: Nigeria has four standard refineries with total installed refining capacity of
445, 000 barrel per day. The first and oldest refinery in Port-Harcourt was commissioned in
1965 with an initial capacity of 35,000 barrels per day and later expanded to 60,000 barrels per
day. The majority shares of the refinery were held by Shell and British Petroleum with the
Federal and defunct Eastern Region Government having minority shares. The Warri refinery
with a capacity to process 100, 000 barrels per day and later expanded to 125,000 barrels per day
was commissioned in 1986. The Kaduna refinery with an installed capacity of 100,000 barrels
per day and commissioned in 1980 was similarly upgraded to 110,000 barrels per day in 1986.
The second Port Harcourt refinery has a processing capacity of 150,000 barrels per day. The
refineries came under NNPC management and ownership in January, 1986 (Ojo, M.O and
Adesbusuyi, B.S 1996).
All the refineries produce the natural range of products and these include Liquefied
Petroleum Gas (LPG); Premium Motor Spirit (PMS); Dual Purpose Kerosene (DPK); Aviatum
Turbine Kerosene (ATK); and Automatic Gas Oil (AGO). In addition, the Kaduna plant
produces lubricating oil, base stocks for petrochemical plants, bitumen and waxes from 56,000
barrels per day heavy crude blend imported from Venezuela and Saudi Arabia. The capacity
utilization of the refineries has declined from 70.74% between 1988 and 1992 to an average of
only 27% in year 2000 (NNPC report on operations; January to December 2000), essentially due
to prolonged neglect in refineries turn around maintenance (TAM). Total allocation of crude oil
to refineries increased from 12,234, 000 barrels in 1970 to 108, 777, 558 barrels in 2000. During
the period, January to December 2000, about 36, 299, 215 barrels or 33.3% of the crude oil
purchase by NNPC was allocated to domestic refining, while the balance of 72,568, 343 barrel or
66.7% was exported.
Petroleum Products Marketing: Petroleum products marketing activities have also
undergone remarkable changes over the years. The NNPC, through its subsidiary; the petroleum
products and marketing company, (PPMC), ensures that refined petroleum products are distributed nationwide. The various petroleum products emanating from the refineries are
transported mainly through a natural network of PPMC pipelines with 8 pump stations and over
land distances totaling 5,001km and linking all the 21 petroleum products storage depots
strategically located all over the country at Aba, Calabar, Enugu, Gombe, Gusau, Ibadan, Ilorin,
Jos, Kaduna, Kano, Maiduguri, Makurdi, Miosimi, Ore, Port Harcourt satellite, Warri, Yola,
Suleja, and Minna. The major marketers: Total, AP, Unipetrol, NOLCHEM, Texaco, Mobil,
Agip, and ELF accounted for about 56% of the market in year 2000, while the balance of 44%
was done by independence marketers. The PPMC pipeline distribution network is made up of
three separate systems for the supply of petrol, kerosene and diesel. Each of the pipelines links
the refineries with the depots. The system of pipelines is complemented by coastal barges, roads
and rail haulage from the haulage from refineries and depots to over 10,000 marketer’s outlet
nationwide. The marine transport operations are carried out from four jetties located at Atlas
cove, Warri, Port Harcourt and Calabar (NEPR,1991).
Oil and Gas Production and Source of Pollutants
Despite precautions, accidents do occur periodically in the course of various processes
and activities in the production, refining and distribution of petroleum products. These may
result from accidental discharges attributed to equipment failure, malfunctioning determination
occasional by corrosion agency of pipelines, deliberate or willful acts of vandalization (about
900 cases reported in year 2000), and neglect in carrying out proper maintenance and or even
human error. In the process of various production and marketing activities, different solid, semi -
solid, liquid, gaseous materials may be released into the environment (ibid). These include (i)
Drilling cutting, drilling mud and fluids and chemicals materials into them to control corrosion,
temperature, or assist in the separation of oil from water; and (ii) General industrial waste;
sanitary and domestic wastes. The problems encountered with seismic activities are not
necessarily environmental pollution but safety problems associated with the use of explosives.
The requirement for the sale and use of explosive are provided for under the Explosive Act of
1964 and Explosive Regulation of 1967.
Exploration and Development of Oil
Exploration and development (whether onshore or offshore) generate waste that include
atmosphere emissions, wastes like drill cutting, drill fields, deck drainage, well treatment fluids
sanitary and domestic wastes and accidental oil spills. Atmosphere emissions from rigs consist
mainly of exhausts from diesel engine supplying power to meet drilling and moisting electricity
requirement of rigs. These emissions may and do contain small amount of sulphur dioxide,
(dependent upon fuel sulphur content), and exhaust smoke (heavy hydro carbons).
An unexpected over pressure formation encountered during drilling may result in a blow
out of gas discharge (if the mud in use does not provide adequate hydro static head over balance
over the reservoir pressure) and if thus occurs, transient emissions of light hydro carbons and
possibly hydrogen suiphide and or sulphur dioxide may result(Aina, E.O.A and Adedipe, N.O)
Drilling fluid (muds) are suspensions of solids and dissolved materials in base of water in
oil that are used for maintaining hydrostatic pressure control during or work over operations.
Water based and oil based muds are used in Nigeria. Water base mud consists of natural clay,
organic and inorganic additives for the achievement of proper density, viscosity and lubrication
characteristics. Additives of particular pollution concern are those of ferro chrome lignosuiphate
(chromium pollution) and lead components (lead pollution).Oil based mud contain oxidized
asphalt, organic acid, alkali, stabilizing agent and low toxic oils.
Drilling fluid are specifically formulated to meet physical and chemical requirements of a
particular well. Mud composition is affected by geographical location, well depth, and rock type
and is altered as rock depth formulations and other condition change. The number and nature of
mud components vary very well and several products may be used at any given time to control
properties of mud system (Sada, P.O and Odemerhe, I.O.). High volume discharge occurs during
changes in mud types, for dilution purpose and mud tanks are emptied at the end of drilling
operations if fluids are not being reused.
Environmental Impacts of Pollutants
Efforts at improving the standard of living of man through the control of nature and the
development of new products have also resulted in the pollution or contamination of the
environment. Most of the world’s air, water and land are now partially poisoned by chemical
wastes from industrial effluents, including those of crude oil and gaseous risks of diseases. Many species of plants and animals have become endangered while some are on the verge of
extinction. As a result of these developments, governments have passed laws to reverse the threat
of environmental pollution. The effects of environmental pollution are diverse and varied and the
physical, biological, chemical and socio-economic effects or impacts have been well documented
(Ozumba, C.C 1996). While some of these may be observed, the major impacts on micro-
organisms and ecosystems may never be fully estimated or completely understood. Physical,
Biological and chemical impacts includes crude oil or refined products of spillage and of
common and persistent occurrence in oil and gas operations. Some spillages include the Funiwa
number 5 oil blow out of 1st January, 1980 (400, 000 barrels); Oyakarna oil spillage of 10th May
1980 (about 30,000bbl): Oshika oil spillage in 1979 (570,000bbl); NNPC oil spillage of 2’’
November 1982 and 1984, NNPC reported 37 spillage (27,235 barrels) of mainly automotive gas
oil (AGO).
Crude oil or refined petroleum product spillage may cause damage to the environment in
many ways. In water, oil film floating on the water surface could prevent natural aeration and
lead to the death of fresh water or marine life. Oil spillage on land may lead to retardation of
vegetation growth and cause soil infertility for a long time until natural processes re-establish
stability. Various spillages of petroleum products have been caused by willful act of
vandalization; neglect of maintenance of oil pipelines; and accidents (such as the one that
occurred at Jesse); and in other areas of the Niger Delta. The Jesse (1998) and (Adeje Oviri
Court) fire incidents which resulted from spilled petroleum products led to the loss of over 1,000
human lives, reduction of other unquantifiable animal and biological populations; destruction of
bridges and electrical installations, devastated vegetation, and caused extensive imbalance to the
ecosystem of the host community environment.
These incidents made national and international headline news in the mass and electronic
media and attracted global attention to the danger posed to human beings by the activities of the
oil industry. Burnt vegetation also exposes the land to wind sheet and gully erosion and attendant
losses of soil fertility by leaching and eradication of agriculturally useful soil organisms and
nutrients (CBN Statistical Bulletin, 1998). In oil drilling operations, corrosive acid wastes, toxic
chemicals and other harmful industrial wastes are intermittently released into Stream Rivers and
seas. Emission of sulphur dioxide, nitrogen dioxide, carbon dioxide, hydrogen suiphide, lead and
noxious gases from power plants that bum high sulphur oil are usually released into the atmosphere. These and injected particulate matter (soot, ash and other solids), and unburned
hydrocarbons undergo series of chemical reactions in the presence of sunlight, resulting in dense
characteristic of smog.
The cost of air pollution is enormous sulphur dioxide has been cited by the American
Lung Association as the third leading cause of lung disease after active passive smoking.
Contaminants in the air have been implicated in the rising incidence of asthma, bronchitis and
emphysema; a serious and debilitating disease of the lung sacs. Heat can be unnaturally added to
the environment, lake and streams as a consequence of gas flaring, burning of forests and
farmland vegetation caused by spillage of oil. The thermal or heat pollution raises atmospheric
temperatures (green house effect) and of water bodies which can kill fish or other aquatic life and
cause discomfort in habitable human environment.
Pollution induces loss of farmland, economic crops, soil fertility and poisoning of fresh
and marine water. All constitute massive and unquantifiable losses to farmers, fishermen, and
hunters who depend on these sources for livelihood. In addition, these creates conditions of
social disharmony, unemployment, squabble and rivalry due to intense competition for scarce
farm lands or fishing grounds, general disaffection and anti - government sentiments in oil
producing communities. The rise of criminal activities and social unrest in the Niger Delta may
not be unconnected with these problems. Violent protests by Youths of oil-producing
communities, hostage taking of Oil Company Executive and Workers are some of the most
adequate testimonies of the resistance to the general pollution of the environment by the
activities of one company (Lamar E. Priester,1998)
When harmful chemical compounds used in the oil industry are not properly disposed of,
there is the general evidence that, they cause pollution of surface and underground water with
dangerous consequences to humans, animals and wider ground organisms. Spilled oil and
petroleum product do seep gradual into sub soil and may pollute underground water
(https//www.sciencedirect.com).
Prevention and Control of Petroleum Pollution
The mitigation and control of pollution from petroleum is of serious concern of to
Government if assessed by the number of legal and policy instruments put in place since 1963 to
address issues of pollution in oil industry`13. These include:
Mineral oil safety Regulations 1968
Oil in navigable water Regulations 1968
Oil in navigable water Act no 34 of 1968
Petroleum Regulations 1967
Petroleum decree 1969
Petroleum (Drilling and production) Regulations 1969
Petroleum (Drilling and Production) Regulations Amendment Regulation 1973.
Petroleum Refining Regulation 1974
Environment Guidelines and standards for the petroleum industry in Nigeria issued by
Ministry of Petroleum Resources 1991
National Environment Protection management of solid and hazardous wastes Regulation
1991 (FEPA)
Establishment of the federal Environment protection agency (FEPA) Decree No 58 of
1988 and Amended in Decree No 59 of 1992.
National policy in Environment (FEPA revised Edition) 1999.
Elevation of FEPA to a ministerial status in 1999.
These various legal and policy document seek to prohibit/control.
Discharge of petroleum into any inlet or drain leading to sewer.
Enclosed area whose follows are made of concrete or non — porous material should be
drained by pipe fitted with an externally actuated value.
Adherence to the international convention for the prevention of sea pollution by oil
(1984)
Regulation of oil pollution arising from refining operations
Prevention of oil pollution, well abandonment procedure, maintenance of apparatus
Prevention the pollution of inland water ways, rivers, water courses the territorial waters
of Nigeria or the high sea by oil.
Conclusion
The Nigerian experience does not have to be repeated in the future. If the sizeable oil
revenues generated are well managed, it offers the potential for improving the lives of the poor
through increased investment in health, education, water, roads and other vital necessities.
However, if the revenues are inserted into a government that lacks transparency and
accountability, it is unlikely that they will reduce or alleviate poverty. Transparency in revenue
payments is not a panacea for problems of revenue mismanagement but a necessary step to
corporate and government accountability. No matter how rich the country’s petroleum reserves is
they merely form part of the total world reserves.
Thus, like other wasting assets, they are subject to depletion. The pace toward the final
and complete exhaustion of petroleum reserves will depend mainly on two important factors:
One, the quantity of additionally known reserves at any onetime; and two, the rate at which those
existing reserves are consumed. It is generally agreed that oil is subject to diminishing returns,
but the fact that ultimate depletion of oil is inevitable calls for caution in the rate of production
and consumption because oil is a non - renewable asset. Nigeria has to put her oil earnings to
profitable usage in order to guard against the inescapable consequence of the post oil era in the
history of human existence.
From all indications, it appears that Nigeria is facing the gauntlet with some degree of
realism. This is reflected in an official policy statement asserting that “as all minerals from the
ground are dwindling and irreplaceable assets”. All efforts have to be directed at ploughing a
substantial proportion of the revenue generated by oil industry to modernization of agriculture,
the extension and improvement of basic infrastructure such as telecommunications, water,
transport which are essential for industrial and related developments. As long as Nigeria invests
its oil revenue in the construction of sound economic base, which must include a vigorous
manpower development while the oil lasts, it would not be afraid of a non-oil future. After all it
has very rich reserves of other resources.
However, if the revenues are inserted into a government that lacks transparency and
accountability, it is unlikely that they will reduce or alleviate poverty. Transparency in revenue
payments is not a panacea for problems of revenue mismanagement but a necessary step to
corporate and government accountability. No matter how rich the country’s petroleum reserves is
they merely form part of the total world reserves.
Thus, like other wasting assets, they are subject to depletion. The pace toward the final
and complete exhaustion of petroleum reserves will depend mainly on two important factors:
One, the quantity of additionally known reserves at any onetime; and two, the rate at which those
existing reserves are consumed. It is generally agreed that oil is subject to diminishing returns,
but the fact that ultimate depletion of oil is inevitable calls for caution in the rate of production
and consumption because oil is a non - renewable asset. Nigeria has to put her oil earnings to
profitable usage in order to guard against the inescapable consequence of the post oil era in the
history of human existence.
From all indications, it appears that Nigeria is facing the gauntlet with some degree of
realism. This is reflected in an official policy statement asserting that “as all minerals from the
ground are dwindling and irreplaceable assets”. All efforts have to be directed at ploughing a
substantial proportion of the revenue generated by oil industry to modernization of agriculture,
the extension and improvement of basic infrastructure such as telecommunications, water,
transport which are essential for industrial and related developments. As long as Nigeria invests
its oil revenue in the construction of sound economic base, which must include a vigorous
manpower development while the oil lasts, it would not be afraid of a non-oil future. After all it
has very rich reserves of other resources.
Recommendations
To improve the outcome for the poor, all actors in the oil sector need to change some of
their practices and collaborate in a more concerted manner, in order to foster any significant
poverty reduction. National governments should undertake the following: remove legal and extra
legal obstacles to transparent disclosure and monitoring of the oil sector; guarantee respect for
human rights including freedom of expression, association and the press; and; And collaborate
with citizen groups monitoring the management and allocation of oil wealth. In addition, oil
companies should support the international campaign by publicly disclosing, in a disaggregated, regular and timely manner, all net taxes, fees, royalties and other payments made Nigeria at any
level, or to local communities, including compensation payments and community development
funding.
The government should also leverage on companies and countries to strategically
promote transparency, fair and accountable revenue management and allocation, and respect for
human rights. Leveraging should be properly sequenced by taking significant steps towards the
building of good governance prior assistance for development of the oil sector.
The government should ensure that its effort at promoting business partnerships with oil
companies in Niger Delta does not compromise its mission of promoting governance, human
rights and sustainable development.
Assistance should be provided to local groups to develop their capacity to generate
credible independent information on oil development project and oil revenue management.
References
Soremekun, K (1997) “Perspective on the Nigerian Oil Industry and Nigeria state” Amkra Publisher, Lagos. pp.7
Onoh J.K (1999) “The Nigerian Oil Economy”. St. Martin’s Press, London: room Helm, pp 66
Nwangu C. (2007), Oil in Nigeria. Liquid Gold or Petro- Dollars curse? Accessed October 20, on usafricaonline.com
http://www.fpif.org/papers/nigeria2003body.htm1
http ://www.thenation.com!doc/20020422/silverstein
http ://www.thefreedictionary. comlforeign+policy.html
Tell, Nigeria independent weekly news magazine February 18, 2008. pp 16 —17.
lbid,ppl8-19
Tell, Nigeria Independent Weekly News Magazine, January 25, 2008 pp. 22.
Ibid,pp23
Alade W. Fawole, Understanding Nigeria‘s foreign policy under civilian rule since 1999: Institutions, Structures, Processes and Performance. University press.pp.26
Ibid,pp27
Ibid,pp25
Alade W. Fawole (2003), Nigeria ‘s External Relation and Foreign Policy under militaryRule, 1966-99,), Ile-Ife: Obafemi Awolowo University Press.
Augustine A. Ikem, The impact of oil on developing country: the case of Nigeria. https//anaworldprhectmaterials.page
Tell Nigeria’s independent weekly news magazine February 18, 2008 pp 112 —115.
National Policy on the Environment (FEPA) Revised edition 1999 Ojo M. 0. andAdebusuyi B. S. (1996). The state of the Nigerian Petroleum Industry
National Environmental Protection (Effluent limitation) Regulations 1991 Environmental Guideline and Standards for the Petroleum Industry in Nigeria (Department of Petroleum Resources)
Aina, E. O. A. and Adedipe N. O, Water Quality Monitoring and EnvironmentalStatus in Nigeria.(ed)https://catalog.princeton.edu
Sada P. O. And Odemerhe I. O: Environmental Issues and Management in Nigeria Development. Skyjournal.org
Ozumba C. C., (1996) Harnessing the potential of the Nigeria oil and gas for economic development. https://projectchampionz.com.org
Central Bank of Nigeria Statistical Bulletin vol9., No 1, (June, 1998) Lamar E. Priester (1998). Use of Olephili Nutrient Enhancement in Bioremediation of soil contaminated by heavy crude and weathered fuel oils.
Evaluating Regulatory Issues and Emission control equipment for air toxic.https//www.sciencedirect.com
Osuntokun, A,(2002) Environmental problem of Niger Delta edited (Lagos Ebert Foundation)
Environmental Management of the Oil and Gas Industry for Sustainable Peace in Nigeria | Environmental Management of the Oil and Gas Industry for Sustainable Peace in Nigeria |
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