Effect of Land Policy on Compensation for Environmental Damage Caused by Gas Flare in the Niger Delta Region of Nigeria

Abstract

The impact of oil exploration on the environment of the Niger Delta region of Nigeria is gradually becoming an issue of global concern. This has also increased agitation by the oil producing communities for equitable compensation for damage caused by oil exploration activities in the region. This paper examines the effect of land policy on compensation for environmental damage caused by gas flaring in the region. Data for the study were extracted and analysed from cases of environmental assets severely damaged by gas flare in Eket and Ibeno areas of the Niger Delta region and the estimates of compensation based on the provisions of Nigeria’s Land Use Act of 1978, which is the country’s land policy document. Results of data analysis shows that compensation determined based on the basic valuation methods was far higher than those determined based on the provisions of the Land Use Act of 1978. These variations are up to 84.94% and 88.83% in the case of loss of income from economic trees and loss of income resulting from injurious affection to fishing rights respectively, assessed on before and after basis. The paper argues that compensation for compulsory acquisition as provided in Section 29 of Nigeria’s Land Use Act is absolutely different from compensation to remediate the losses caused by damage to environmental assets due to gas flare. It recommends the enactment of an appropriate legislation that would provide effective legal support for the assessment of fair, just and adequate compensation for environmental damage in the Niger Delta region of Nigeria.

Keywords: Compensation, Environmental Damage, Gas Flare, Land Policy, Valuation, Niger Delta