AN EXAMINATION OF THE LIABILITY AND COMPENSATION REGIME FOR OIL SPILL DAMAGE UNDER SECTION 11(5) OF THE OIL PIPELINES ACT OF NIGERIA

Liability and Compensation for Oil Spill Damage

Abstract

This article examines section 11(5) of the Oil Pipelines Act of 1956 (OPA), which provides a statutory framework for civil liability and compensation for oil spill damage resulting from oil pipeline operations in Nigeria. The aim of this article is two-fold. First, the article interrogates the assertion by some writers that a person claiming compensation for oil spill damage under section 11(5) of the OPA must submit to a pre-action administrative hearing to determine the quantum of compensation payable before they can institute an action, if not satisfied. Through an analysis of relevant provisions of the OPA, the article demonstrates that the assertion is misplaced. Secondly, it is observed that judicial discussions on the liability exception contained in section 11(5) (c) of the OPA (which exempts an oil pipeline licence holder from liability for oil spill damage caused by the malicious act of a third person) have been minimal in Nigeria.  In light of this, the article draws upon judicial discussions in England on similar liability provisions contained in section 85(1) of the United Kingdom Water Resources Act of 1991 (albeit in the context of criminal litigation), with a view to providing helpful guidance for Nigerian judges willing to protect the environment by robust use of their interpretative powers. The article adopts a doctrinal research methodology, relying on an analytical review of primary legislation and relevant case law to arrive at a logical conclusion.