MONETARY COMPENSATION FOR OIL SPILL DAMAGE IN NIGER DELTA REGION, NIGERIA: A QUESTION OF ADEQUACY

Abstract

The impairment of interests due to oil spill damage necessitates valuation for compensation purpose. However, the question of adequacy of the compensation offered to victims of oil spillage in Niger Delta Region (NDR), Nigeria remained unanswered after decades of oil exploration and pollution in the region. The paper examined the disparity between the expected and actual monetary compensation paid to claimants for their impaired interests. A multistage sampling method was applied and data were randomly collected from residents of five oil producing communities in the region using questionnaire. In all, 1,940 questionnaires were administered but 1,125 (57.99 %) were found suitable for the analysis. The data collected were analyzed descriptively and inferentially. The results of Kruskal Wallis test showed a significant difference in the residents’ description of compensation adequacy across the selected communities; Chi-Square (χ2) = 33.221, p-value = 0.000. The result of T-test indicated that there is significant difference between the expected and actual compensation paid based on the current practice in the each of the selected communities in NDR. The paper recommended that as much as the cleanup programme contemplated by the present administration is important, the issue of compensation for damaged interest also should be given the required attention. (English) [ABSTRACT FROM AUTHOR]