Site icon Modish Project

AN ASSESSMENT OF LIABILITIES OF OIL PRODUCING COMPANIES FOR OIL SPILLAGE IN NIGERIA

Uwakmfon

CHAPTER ONE

1.1  INTRODUCTION

Recently, it was announced amidst cheers and jeers that the Nigeria Economy has surpassed that of South Africa after the most populous nation in Africa overhauled its Gross Domestic Product (GDP) data for the first time in two decades. On paper, the size of the Economy expanded by more than three-quarters to an estimated 80 trillion Naira (8488 billion) for 2013. Yemi Kale1 also confirms that the revised figures make Nigeria the 26th biggest Economy in the world. According to the new data, Nigeria’s Economy grew at 12.7 percent between 2012 and 2013.

Much of Nigeria’s Gross Domestic Product (GDP) is driven by oil production, which accounts for 40 percent of its GDP; since oil was discovered in 1956 till the present time it has dominated the Economy. Shell B.P and other developers in the pursuit of commercially available petroleum found oil in Nigeria in 1956. Prior to the discovery of oil, Nigeria like many other African

  1. Head Of The National Bureau Of Statistics, At A News Conference At The Headquarters Of NBS March 2014.

12

countries strongly relied on agricultural exports to other countries to supply their Economy.

Many Nigerians thought the developers were looking for palm oil2 but after nearly 50 years of searching for oil in the country, shell B.P discovered the oil at Oloibiri in the Niger-Delta. Wishing to utilize the new found oil opportunity, the first oil field began production in 19583 after that, the Economy of Nigeria would have seemingly experienced a strong increase and truthfully it has, but not without leaving behind some adverse environmental problem.

For nearly a century, petroleum production and consumption has probably brought out both the best and worst of Modern Civilization.

The industry has contributed enormously to the world Economy growth and higher standard of living in our time4 the mythos of oil and oil-wealth has been central to the history of Modern Industrial Capitalism, and annual oil revenue of over N50

13

Billion has ushered in a miserable, undisciplined, decrepit and corrupt form of petro-capitalism5 after over a half century of oil production from which over 400 Billion Dollar in oil revenue have flowed directly into the Federal exchequer, paradoxically oil producing states in the Federation, the Niger-Delta have benefitted the least from the oil-wealth having been devastated by the Ecological cost of oil spillage and the highest Gas Flaring rates in the world.

Oil spills in Nigeria are a common occurrence, it has been estimated that between nine million to 13 million barrels have spilled since oil drilling started in 19586. The Government estimates that about 7, 000 spills occurred between 1970 and 20047. Spills take out crops and aquaculture through contamination of the ground water and soil. Drinking water is also frequently contaminated, and sheen of oil is visible in many localized bodies of water. If the drinking water is contaminated, even if no immediate health effects are apparent, the numerous hydrocarbons and chemicals present in oil represent a

14

carcinogenic risk. While offshore spill which are usually much greater in scale, contaminate coastal Environment and cause a decline in local Fishing Production.

The people of Niger-Delta live in extreme poverty even in the face of great material wealth found in the waters by their homes. According to Amnesty international 70% of the six million people in the Niger-River Delta live off of less than 3 USD per day8 for many people this mean finding work in labour market, which is in many instances hostile to them.

DOWNLOAD COMPLETE PROJECT MATERIALS

AN ASSESSMENT OF LIABILITIES OF OIL PRODUCING COMPANIES FOR OIL SPILLAGE IN NIGERIA

Exit mobile version