Iko (Nigeria) Oil Spill (IKO Case)

     CASE NUMBER:        326
     CASE MNEMONIC:      IKO
     CASE NAME:          Iko (Nigeria) Oil Spill

A.   IDENTIFICATION

1.   The Issue

     Iko oil spillage issue is important because of the extent of
damage and impact, and has been in the local news, but there are
other smaller cases that have not been reported upon.  While the
issue touches on international and domestic trade, its negative
externality on the environment destroys the environment and
productive capacity of the people.  The oil trade is important
because the government and the oil companies generate their revenue
from it. On the other hand, the indigenous people living in this
area are in poverty due to lack of social services such as
hospitals, good drinking water, schools and are suffering from oil
pollution.  Due to weak coalition among the people, their plight
has been suppressed, but the efforts of international non-
governmental institutions, media exposure and individual legal
actions has helped to check the government and the oil companies
impact on subsistence means of livelihood, and the destruction of
species.   

2.   Description

     Oil spillage in Nigeria in Aguiyi-Ironsi's investigation shows
that, "between 1970 and 1983, offshore and on-shore oil spillage
amounts to 1,711,354,6 barrels (Aguiyi, 13)."  Oil spillage is
associated with areas where there is oil exploration or along
pipelines used for its transportation to the hinterland.  Most of
the victims are poor and have fragile coalitions, which further
prevent them from influencing government policies as it affects
them.  Nigerian government has taken bold steps to promote
environmental education and awareness.  According to the Federal
Environmental Protection Agency, Lagos-Nigeria, the following
relevant national laws and international agreements are in effect:
Endangered Species Decree Cap 108 LFN 1990; Federal Environmental
Protection Agency Act Cap 131 LFN 1990; Harmful Waste Cap 165 LFN
1990; Petroleum (Drilling and Production) Regulations 1969 Cap. 350
Vol. xix P.12766; Oil in Navigable Waters Act 1968 Cap. 337 Vol.
xix P.12327; Mineral Oil (Safety) Regulations 1963 Cap. 350 Vol.
xix P. 12667; 1971 International Convention on the Establishment of
an International Fund for Compensation for Oil Pollution Damage;
1972 Convention on the Prevention of Marine Pollution by the
Dumping of Wastes;  1968 African Convention on the Conservation of
Nature and Natural Resources; 1971 International Convention on the
Establishment of an international Fund for Compensation for Oil
Pollution Damage; (References to caps, volumes and pages are as in
the Laws of the Federation of Nigeria).  

     The oil pollution is important and controversial because some
of the oil industries are not prepared to internalize the negative
externality, even though its impact on the health of the community
is high.  The oil companies in most cases attribute the oil
spillage to sabotage and accident.  These companies maintain that
they are committed to contributing to the well being of the people
living in the affected areas, but according to Aguiyi-Ironsi, "an
investigation by the Nigerian Environmental Society in 1985
revealed that between 1970 and 1983, offshore and on-shore oil
spillage amounts to 1,711,354 barrels (Aguiyi, 13)."  Aguiyi went
further to say that,

     "The riverine village of Iko, in Akwa Ibom State, saw
     enough of the devastations of pollution as Egbema people
     did.  In six years from 1982, when shell oil company
     started flaring gas in the Iko area, the once flourishing
     village, known for its fish trade, was transformed into
     the ghost town..." (Aguiyi, 15)

     Nigerian government enacted the workmen compensation act of
1955 and decrees 16 and 17 of 1984, which relates to compensation
of victims of pollution, however, the oil companies find ways to
circumvent these laws with the help of some unscrupulous, corrupt
Nigerians.  According to Newswatch,

     The people of Iko, for example, after a series of pleas
     to shell oil company and petitions to successive state
     governments, still didn't get any relief...  In 1982, the
     youths at Egbema barricaded roads leading to Nigerian
     Agip and oil company (NAOC)... (because) of non-payment
     of compensation for the damage done to their environment
     (Newswatch, 18)

     Even with the companies' creation of few scholarships and few
roads (appeasement) in the 80s, the 90s witnessed a shift from
domestic campaign to the international scene.  According to
Ekeocha, "(on) November 24, 1992, environmental groups in london
organized peaceful demonstration at shell premises to awaken the
consciousness of their people... (Ekeocha, 18)."  In addition,
Ekeocha notes that Saro-Wiwa, who is currently the president of the
Association of Nigerian Authors internationalized the issue:

     (T)heir struggle and challenging the activities of the
     oil companies through visitation of Human Rights
     Organization, environment groups in America and
     Europe.... (He) was later invited to the 10th working
     session of the United Nations Group on Indigenous
     Populations in Geneva.  The London Rain Forest Action
     Group and Green Peace Environmental Movement were also
     contacted. (Ekeocha, 18)

3.   Related Cases

     NIGERIA case
     ECUADOR case
     OGONI case
     KOMI case
     BLACKSEA case
     MEDIT case

     Keyword Clusters    

     (1): Forum                    = NIGERIA
     (2): Bio-geography            = TROPical
     (3): Environmental Problem    = OIL/GAS

4.   Draft Author: Shehu Ibrahim (May, 1994)

B.   LEGAL Cluster

5.   Discourse and Status:  DISagreement and INPROGress

     This case in question is the oil pollution, which is a
disagreement between the oil exporters and the community living
where oil is discovered.  This case has been established, but its
resolution is not yet in sight, because some of the communities are
calling for autonomy, which is offensive to the Federal government
that has control over all resources within its territory.  The
Federal government on May 12 promulgated the Treason and
Treasonable Offenses Decree (1993) " (Anyone) who conspire with
groups within or outside the country and profess ideas that
minimize the sovereignty of Nigeria are guilty of treason,
punishable with death." Therefore, I will rate it as a value of 2. 

6.   Forum and Scope:  NIGERIA and UNILATeral

     This case also appeared on the international scene at the 10th
working session of the United Nations Group on Indigenous
Population in Geneva.  Others involved in this case include the
Greenpeace, Geneva-based International Atomic Energy Agency,
Friends of the Earth, Nigerian Institute of Marine Research and
Oceanography, and British Parliamentary Human Rights Group (BHRG).

7.   Decision Breath:  1

8.   Legal Standing:  LAW

C.   GEOGRAPHIC Cluster

9.   Geographic Locations

     a.   Geographic Domain : Africa
     b.   Geographic Site   : West Africa
     c.   Geographic Impact : Nigeria

10.  Sub-National Factors:  YES

11.  Type of Habitat:  TROPical

D.   TRADE Cluster

12.  Type of Measure:  Regulatory Standard [REGSTD]

     In the case of Iko and Ogoni oil pollution issue, some argue
that compensation should be paid to affected victims.  Laws and
regulations enacted should be invoked and strictly implemented.  An
escrow account should be established by the oil companies and the
Nigerian government, from which compensation would paid and others
social services and amenities would be met.  Aguiyi-Ironsi notes
the laxity shown from time, "Ironically, the Oil Navigable Waters
Act of 1968, which provides that no more than 100 parts of oil be
discharged 30 nautical miles off the country's coast is not being
enforced.

     In some instances, environmental litigation are presented to
courts for settlement.  According to Adewale, "In some cases, the
maxim of res ipsa loquitur (The Fact speaks for itself) has been
relied upon to relieve plaintiff from the onerous duty of proving
negligence. Thus in Victor Flem Vs Shell B.P. (1979) oil escaped
from the defendant's oil location to the plaintiff's property
thereby causing damage.  The judge evoked the principle of res ipsa
loquitur and awarded damages to the plaintiff.

13.  Direct vs. Indirect Impacts:  INDirect

14.  Relation of Measure to Environmental Impact

     a.  Directly Related     : YES  OIL/GAS
     b.  Indirectly Related   : NO
     c.  Not Related          : NO
     d.  Process Related      : YES  Pollution Land [POLL]

15.  Trade Product Identification:  OIL

16.  Economic Data

     According to African survey, Nigeria's principal means of
revenue is the oil, and it provides 96.2% of total export earnings
in 1991 (Africa, 2978).  Whereas, the degree for dependence on
imported petroleum for Japan, France, West Germany, Italy, and the
United States would be placed along a continuum from high to low
respectively.  

17.  Impact of Measure on Trade Competitiveness:  LOW

18.  Industry Sector:  OIL/GAS

19.  Exporter and Importer:  Nigeria and MANY

E.   ENVIRONMENT Cluster

20.  Environmental Problem Type:  Pollution Land [POLL]

     The number of species destroyed cannot be determined, however,
the impact on the health of humans living in Iko, Ogoni, Delta
areas, and other animals is devastating.

21.  Name, Type, and Diversity of Species 

          Name:          Many

          Type:          Many

          Diversity:     PHILippines

22.  Impact and Effect:  LOW and PRODuct

23.  Urgency and Lifetime:  MEDIUM and 100s years

24.  Substitutes:  Biodegradable products

VI.  OTHER Factors

25.  Culture:  NO

     Nigerian laws are derived from pre-20th century English
statutes, but are now modified to suit Nigeria's socio-cultural
realities.  However, most of the laws and decrees enacted in
respect of the trade are in accordance to Nigeria's National Law,
and International agreements.  Note that references to caps,
volumes and pages are as in the Laws of the Federation of Nigeria.
Official Memorandums of Understanding (MOU) between Nigeria and
Italian government led to a "systematic programme of
decontamination, restoration and post-impact  monitoring ( FEPA,
1989)."

26.  Trans-Border:  NO

27.  Rights:  YES

28.  Relevant Literature

"Nigeria" Africa South of the Sahara 1993. England ; Europa      
     Publishing Ltd. 1993.
Adewale, O. The Nigerian Institute of Advanced legal Studies, Lagos
     1991.
Aguiyi-Ironsi, Louisa. "The Looming Shadow: Environmental pollution
     is gradually changing Nigeria's landscape, destroying sources
     of livelihood" Newswatch. July 18,1988.
Aguiyi-Ironsi, Louisa. " A World Under the Sword: Experts say    
     global environmental pollution is increasingly becoming a   
     major threat" Newswatch. July 18,1988.
Ayadike, O. West Africa, June 20, 1988,p. 1109.
Federal Environmental Protection Agency, Nigeria. "Achieving
     Sustainable Development in Nigeria" National Report for the
     United Nations Conference on Environment and Development. Rio
     de Janeiro, Brazil. 1-12 1992.
Greenpeace Toxic Trade Update, Third and Fourth Quarter 1991.
Greenpeace Toxic Trade Update, Second to Fourth Quarter 1992.
Greenpeace Toxic Trade Update, First and fourth Quarter 1993.
Nigerian Environmental Study/Action Team pp. 261-264. 1991.
Odauran, Akpovire B. "Education Against Environmental Pollution in
     Nigeria" Convergence. Vol. 22 No 4, 1989 pp.55-60.
"Would-be waste smugglers face execution" New Scientist. Vol 136
     (Nov 21, 92)p.8.
Smowdem, R,J, ; Ekeazor, I.K.E. "Littoral in fauna of a West Africa
     estuary: an oil pollution survey" Marine Biology. V. 105 No
     1 (90) p.51-7.