Marginal Fields’ Awards, Regulators’ Independence, and Environmental Injustice: Paradox of Beneficial Ownership and the Host Communities
Nigeria’s oil sector has long been shaped by elite politics and systemic corruption. Since the discovery of oil by Shell-BP in 1956 at Oloibiri, Bayelsa State, extractive activities have expanded across the Niger Delta, impacting the region’s environment and communities. Despite Nigeria being Africa’s largest oil producer and the sixth-largest global exporter, the country grapples with the “resource curse,” where oil wealth has not translated into broad economic or social development. Host communities in the Niger Delta face environmental degradation, loss of livelihoods, and health risks due to oil spills and gas flaring. Meanwhile, the failure of regulatory frameworks and policies has allowed elites to exploit the sector for personal gain, fostering a deep-rooted culture of corruption. This elite-driven agenda prioritizes the interests of multinational oil companies over the welfare of local communities, leaving the latter impoverished despite decades of booming oil revenue that accounts for over 85% of export earnings and at least 60% of Nigeria’s annual budget. Download Here