LOOKING AT COMPANIES IN OIL BUSINESS AND THE LAW OF COMPENSATION FOR OIL POLLUTION IN NIGERIA THROUGH THE MARXIAN PERSPECTIVE

Abstract

Ownership, control and management of oil and gas infrastructure are matters subsumed under the monopoly of the Federal Government of Nigeria and strictly regulated by federally enacted laws in the country. Multinational oil companies through licenses involve in joint venture operations in the oil sector with the Federal Government through Nigerian National Petroleum Company Limited (NNPCL). This company manages the country’s commercial interest in oil business alliance with multinational oil companies in the petroleum sector. Multinational oil companies in joint venture with NNPCL engage in commercial pursuits profits in the petroleum sub-sector, paying scant attention to restoration of the environment from, and compensation of victims for oil pollution damage arising from oil mining operations. Corporate oil miners paying scant attention to victims in need of compensation for oil pollution are able to escape liability for oil pollution because of loopholes existing in the body of laws for environmental regulation and compensation of oil pollution. The legal regime for compensation of oil pollution exist with anomalies, technicalities, imprecision and inadequacies; and above all, pro-state and multinational oil companies focused in nature. The nature of oil regulatory laws and their interpretation appear to be informed and influenced largely by the economic interest of the state on the line of oil production. Thus, this paper looks at the national and multinational oil companies in oil sector in Nigeria in its bid to evaluate the background and character of oil pollution compensation laws using the Marxian theoretical perspective. The pro-state character and protectionist posture of oil regulatory laws toward multinational oil companies actually informed the deployment and application of Marxian theoretical perspective in the analysis of laws within the context of this paper. To that extent, qualitative research methodology and doctrinal approach are applied to evaluate provisions and principles of laws relevant in of this paper. Going by doctrinal research approach, the paper draws materials from statutes, law reports containing judicial precedents, law text books and academic journals to develop sub-themes making up its body. Thus, total abolition of laws for their exploitative nature as contemplated by the Marxian perspective is out-rightly rejected. It is recommended among others, that oil pollution laws no matter how exploitative they may be should be amended or selectively repealed and replaced to address compensatory justice in Nigeria.