INCORPORATING THE LONG TERM IMPACT OF OIL SPILLS INTO COMPENSATION VALUATION IN NIGERIA

Dick Festus Ibigoni & Iyenemi Ibimina Kakulu

 Department of Estate Management,

Rivers State University, Port Harcourt

ABSTRACT

In Nigeria, Compensation valuation as a result of oil spill is undertaken based on the provision of the enabling laws and other relevant status. There are several augments as regards the factors to be considered  when valuing  for compensation payable as a result of oil spill. This study  aimed at ascertaining the benefits of incorporating long term impact of oil spills into oil spill compensation valuation. Compensation provision of the various laws were reviewed and found to only provide assessment and payment of compensation on land, buildings, crops and economic trees, no provisions was made for the long-term impact of the spill. Consequently, both primary and secondary data were collected through questionnaires and interviews. The analysis identified the benefits as; Increase in compensation payable, improvement on already existing claims factors, increase in pipeline maintenance and surveillance and reduction in oil spill incidences. Recommendations were made and if adhered to, there is the tendency that the present inadequate compensation crisis among polluters and victims which have caused serious and lengthy litigation in the court will be reduced to the barest minimum.  The researcher made the following recommendations having identified the importance of the long-term impact of oil spill in compensation determination, it is recommended that the long-term impact (value) of oil spill be incorporated into compensation valuation and the regulations governing compensation practices in Nigeria be reviewed, so as to incorporate long term impact of oil spill as an important factor in compensation determination.