UPSI Digital Repository (UDRep)
Start | FAQ | About

QR Code Link :

Type :article
Subject :H Social Sciences (General)
Main Author :Isidiho, Alphonsus O.
Additional Authors :Nik Ahmad Sufian Burhan
Mohammad Shatar Sabran
Ahmad Tarmizi Talib
Mohd Ibrani Shahrimin Adam Assim
Title :The economic impact of oil spill on communities in Imo State and the Niger Delta Region of Nigeria
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2020
Corporate Name :Universiti Pendidikan Sultan Idris
PDF Guest :Click to view PDF file

Abstract : Universiti Pendidikan Sultan Idris
The study examines the economic impacts of oil spill on the life of the people of Ohaji/Egbema and Oguta Communities in Imo State Nigeria. The oil spill has polluted the rivers making it difficult to fish; the spills on farms have destroyed the crops leading to low yield and income, and this caused socioeconomic problems in these communities. The oil spill in these communities are peculiar as it occurs both on water and land unlike other spill in other countries occurring only on water. Literature shows that oil spill worldwide caused severe economic impact including loss of income, drop in share prices, loss of funds through clean-up and remediation, and payments for injurious harm to businesses and environment. The Environmental Kuznets Curve (EKC) theory and stakeholders’ theory are useful in this study. The international laws on oil spill compensation have not been adequate, hence compelling countries to invoke their national laws. Using mixed methods, the findings of the study show that the income of these communities was negatively affected and little or no compensation paid to the affected communities. Inadequate enforcement of oil spill laws in Nigeria coupled with lack of political will to strictly enforce these laws has been identified. The spill caused psychological trauma and stress, occupational displacement, decrease in income, poverty and diseases in these communities. There is a need to amend the international laws on oil spill covering both spill from ship and on land, and the urgent need for all related agencies in Nigeria to be active in their duties. The oil companies need to be proactive in addressing the problems created by oil spill, while urgent clean-up and adequate compensations need to be paid.


Adetunberu, Oludotun (2019). Oil Conflicts and Arms Proliferation in Ogoni and Ijaw Region of Niger Delta, Nigeria: The Possible Solutions. American Journal of Humanities and Social Sciences Research (AJHSSR), 3, 121-129.

Adisa, Oluyemi Opeoluwa (2018). Implications of Using the Military and Para-military Forces for Securitizing Nigerian Insecurities: The Case of Niger Delta Crisis. American International Journal of Social Science, 7, 46 – 57.

Akpan, Usenobong F. and Chuku, Agbai (2011). Economic Growth and Environmental Degradation in Nigeria: Beyond the Environmental Kuznets Curve. Paper Presented at the 4th Annual NAEE/IAEE International Conference, held at Sheraton Hotels and Towers, Abuja, Nigeria, April 27th – 29th, pp. 1- 29. Online at MPRA Paper No. 31241.

Alumuna, S., Ofoegbu, R. C., & Edet, A. S. (2017). Militancy and Kidnapping in the Niger Delta Region of Nigeria: A Recap. Elixir Social Studies 112, 49425 – 49434.

Amnesty International Report and Friends of the Earth International (2011). UNEP Findings on Complaint: Complaint to the UK and Dutch National Contact Points under the Specific Instance Procedure of the OECD Guidelines for Multinational Enterprises 30 December.

Betinis, Kristina (2010). The social and economic impact of the Gulf oil spill. World Socialist Web site: (Accessed online10/02/2020).

Bishop, R. C., Boyle, K. J., Carson, R. T., Chapman, D., Hanemann, W. M., Kanninen, B., … Scherer, N. (2017). Putting a value on injuries to natural assets: The BP oil spill. Science, 356(6335), 253–254. doi: https://10.1126/science.aam8124.

Buckingham-Howes, S., Holmes, K., Glenn Morris, J., & Grattan, L. M. (2019). Prolonged Financial Distress After the Deepwater Horizon Oil Spill Predicts Behavioral Health. Journal of Behavioral Health Services and Research, 46, 294–305.

Chang, S., Stone, J., Demes, K., & Piscitelli, M. (2014). Consequences of oil spills: A review and framework for informing planning. Ecology and Society, 19(2) 26. Retrieved April 15, 2020, from

Cheong, S.-M. (2011). A social assessment of the Hebei-Spirit oil spill. GeoJournal, 76, 539–549. doi: https://10.1007/s10708-010-9368-4.

Cheong, S.-M. (2012). Fishing and Tourism Impacts in the Aftermath of the Hebei-Spirit Oil Spill. Journal of Coastal Research, 285, 1648–1653. doi: https://10.2112/jcoastres-d-11-00079.1

Cherry, K. E., Lyon, B. A., Marks, L. D., Nezat, P. F., Adamek, R., Walsh, S. D., … Bernacchio, C. V. (2015). After the BP Deepwater Horizon Oil Spill: Financial and Health Concerns Among Coastal Residents and Commercial Fishers. Current Psychology, 34, 576–586. doi: http://10.1007/s12144-015-9372-4

Cleveland, C. J. (2010). Deepwater Horizon Oil Spill. Retrieved from Encyclopaedia of Earth:

Creswell, J. W. (2009). Research design: Qualitative, quantitative and mixed methods approach (3rd ed.). London: Sage.

Creswell, J. W., & Plano Clark, V. L. (2007). Designing and Conducting Mixed Methods Research. London: Sage Publications Ltd.

Francis, Paul, Deirdre Lapin, & Paula Rossiasco (2011). Securing Development and Peace in the Niger Delta. A Social and Conflict Analysis for Change. Study prepared for publication by the Woodrow Wilson International Center for Scholars Africa Program and Project on Leadership and Building State Capacity. Woodrow Wilson International Center for Scholars Africa Program.

Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88–106.

García Negro, M. C., Villasante, S., Carballo Penela, A., & Rodríguez Rodríguez, G. (2009). Estimating the economic impact of the Prestige oil spill on the Death Coast (NW Spain) fisheries. Marine Policy, 33(1), 8–23. doi: https://10.1016/j.marpol.2008.03.011

Garza-Gil, M. D., Prada-Blanco, A., & Vazquez- Rodriguez, M. X. (2006). Estimating the short-term economic damages from the Prestige oil spill in the Galician fisheries and tourism. Ecological Economics, 58 (4), 842–849.

Gill, Duane A. & J. Steven Picou. (2001). The Day the Water Died. New York Press. New York and London.

Gill, D. A., Ritchie, L. A., & Picou, J. S. (2016). Sociocultural and psychosocial impacts of the exxon valdez oil spill: Twenty-four years of research in Cordova, Alaska. The Extractive Industries and Society, 3(4), 1105–1116. doi: https://10.1016/j.exis.2016.09.004

Goldstein, B.D., Osofsky, J.H. & Lichtveld, M.Y. (2011). The Gulf oil spill, New England Journal of Medicine, 36(14), 1334-1348.

Grattan, Lynn M., Babette Brumback, Sparkle M. Roberts, Stacy Buckingham-Howes, Alexandra C. Toben, & Glenn Morris (2017). “Bouncing back” after the Deepwater Horizon oil spill, Disaster Prevention and Management: An International Journal, 26(2), 122 – 133.

Grattan, L.M., Roberts, S., Mahan, W., McLaughlin, P.K., Otwell, W.S. and Morris, J.G. Jr (2011). The early psychological impacts of the Deepwater Horizon oil spill on Florida and Alabama communities, Environmental Health Perspectives, 119(6), 838-843.

Hobfoll, Stevan E. (2012). Conservation of resources and disaster in cultural context: the caravans and passageways for resources. Psychiatry: Interpersonal and Biological Processes, 75(3), 227-232.

Humphrey, P., Carter, D. A., & Simkins, B. (2016). The market’s reaction to unexpected, catastrophic events. The Journal of Risk Finance, 17(1), 2–25. doi: https://10.1108/jrf-08-2015-0072

Inoni, O. E., Omotor, D. G. & Adun, F. N. (2006). The effect of oil spillage on crop yield and farm income in Delta State, Nigeria. Journal of Central European Agriculture, 7(1), 41–48.

Isidiho, O. A., & Mohammad S. Sabran (2015a). Challenges Facing Niger Delta Development Commission (NDDC) Projects in Imo State and Niger Delta Region in Nigeria. International Journal of Humanities and Social Science, 5(6), 37 – 48.

Isidiho, O. A., & Mohammad S. Sabran (2015b). Socio-Economic Impact of Niger Delta Development Commission (NDDC) Infrastructural Projects in Selected Communities in Imo State Nigeria. Asian Journal of Humanities and Social Sciences (AJHSS), 3(2), 109 – 113.

Ite, E. A. J., Ibok, U. U., Ite, M. & Petters, W. S. (2013). Petroleum Exploration and Production: Past and Present Environmental Issues in the Nigeria’s Niger Delta. American Journal of Environmental Protection, 1(4), 78–90.

Jones, C. (2011). Tourism returning a year after the Gulf oil spill. Retrieved from USA Today:

Kate, A. (2011). Royal Dutch Shell and its sustainability troubles. Background report to the Erratum of Shell’s Annual Report 2010, May, 1 – 71.

Kim, D., Yang, G., Min, S., & Koh, C. (2014). Social and ecological impacts of the Hebei Spirit oil spill on the west coast of Korea: Implications for compensation and recovery. Ocean & Coastal Management, 102, 533–544. doi: https://10.1016/j.ocecoaman.2014.05.023

Luo Y, Chen H, Zhu Q, Peng C, Yang G, Yang Y, et al. (2014). Relationship between Air Pollutants and Economic Development of the Provincial Capital Cities in China during the Past Decade. PLoS ONE 9(8): e104013. https://10.1371/journal.pone.0104013

Loureiro, M. L., Ribas, A., López, E., & Ojea, E. (2006). Estimated costs and admissible claims linked to the Prestige oil spill. Ecological Economics, 59(1), 48–63. doi: https://10.1016/j.ecolecon.2005.10.001

McCrea-Strub, A., Kleisner, K., Sumaila, U. R., Swartz, W., Watson, R., Zeller, D., & Pauly, D. (2011). Potential Impact of the Deepwater Horizon Oil Spill on Commercial Fisheries in the Gulf of Mexico. Fisheries, 36(7), 332–336. doi: https://10.1080/03632415.2011.58933

Meeuwissen, (2012). The BP-oil spill, a crisis for BP or for the whole industry? Master Thesis Department of finance, School of Economics and Management, Universiteit Van Tilburg. (Accessed online on 24/04/2020)

Mong, M.D., Noguchi, K. and Ladner, B. (2012). “Immediate psychological impact of the Deepwater Horizon oil spill: symptoms of PTSD and coping skills”, Journal of Aggression, Maltreatment, and Trauma, Vol. 21 No. 6, pp. 691-704.

Miles, Samantha (2012). Stakeholders: essentially contested or just confused? Journal of Business Ethics 108(3), 285–298.

Natale, Marisa Di (2010). The Economic Impact of the Gulf Oil Spill. Moody’s Analytics. (Accessed online on 24/ 04/ 2020)

Niemi, R. & Heiskanen, Ilse & Wallenius, Kaisa & Lindström, Kristina. (2001). Extraction and purification of DNA in rhizosphere soil samples for PCR-DGGE analysis of bacterial consortia. J. Microbiology Methods, 45, 155-165.

Okonkwo, Eloamaka Carol (2014). Oil Spills in Nigeria: Are there Social and Economic Impacts? International Oil Spill Conference Proceedings: May, Vol. 2014, No. 1, pp. 300289.

Omisakin, D. and A. Olusegun (2009). Economic growth and environmental quality in Nigeria: does environmental Kuznets curve hypothesis hold? Environ. Res. J., 3 (1) (2009), pp. 14-18.

Osofsky, H.J., Osofsky, J.D. and Hansel, T.C. (2012). Commentary on “A conceptual framework for understanding the mental health impacts of oil spills: lessons from the Exxon Valdez oil spill’– mental health perspectives following the Gulf oil spill, Psychiatry, 75(3), 233-235.

Osofsky, J. D., Osofsky, H. J., Weems, C. F., Hansel, T. C., & King, L. S. (2014). Effects of Stress Related to the Gulf Oil Spill on Child and Adolescent Mental Health. Journal of Pediatric Psychology, 41(1), 65–72. doi: https://10.1093/jpepsy/jsu085

Palinkas, L.A. (2012). A conceptual framework for understanding the mental health impacts of oil spills: lessons from the Exxon Valdez oil spill, Psychiatry, 75(3), 203-222.

Pan, G., Qiu, S., Liu, X., & Hu, X. (2015). Estimating the economic damages from the Penglai 19-3 oil spill to the Yantai fisheries in the Bohai Sea of northeast China. Marine Policy, 62, 18–24. doi: https://10.1016/j.marpol.2015.08.007

Phenson, U. A., Ojie, P. & Esin, J.O. (2014). The Nigerian State, Security Management Mandate and Challenges in the Niger-Delta Region, Nigeria. Journal of Research & Method in Education (IOSRJRME), 4, 3, 15-20.

Picou, J., Marshall, B., & Gill, D. (2004). Disaster, litigation, and the corrosive community. Social Forces, 82(4), 1426–1497.

Pourvakhshouri, Seyedeh Zahra (2008). Coastal Priority Ranking in Oil Spill Response Decision Support Mechanism. Thesis Submitted to the School of Graduate Studies, Universiti Putra Malaysia In Fulfilment of the Requirements for the Degree in Doctor of Philosophy.

Psarros, G., R. Skjong, & E. Vanem (2011). Risk acceptance criterion for tanker oil spill risk reduction measures. Marine Pollution Bulletin, 62(1), 116-127.

Ramseur, Jonathan. L. (2012). Oil Spills in U.S. Coastal Waters: Background, Governance, and Issues for Congress. CRS Report for Congress, 1–28.

Ritchie, B. W., Crotts, J. C., Zehrer, A., & Volsky, G. T. (2013). Understanding the Effects of a Tourism Crisis. Journal of Travel Research, 53(1), 12–25. doi: https://10.1177/0047287513482775

Sabet, S. A. H., Cam, M.-A., & Heaney, R. (2012). Share market reaction to the BP oil spill and the US government moratorium on exploration. Australian Journal of Management, 37(1), 61–76.

Smith, L. C., Smith, M., & Ashcroft, P. (2010). Analysis of Environmental and Economic Damages from British Petroleum’s Deepwater Horizon Oil Spill. SSRN Electronic Journal. doi: https://10.2139/ssrn.1653078

Sofiri Joab-Peterside (2007). Niger Delta Economies of Violence: Working Paper No. 21 On the Militarization of Nigeria’s Niger Delta: The Genesis of Ethnic Militia in Rivers State, Nigeria Research Fellow Center for Advanced Social Science (CASS) Port Harcourt, Nigeria.

Steiner, J. F., & Steiner, G. A. (2012). Business, government, and society: A managerial perspective, text and cases (13th ed.). New York: McGraw-Hill/ Irwin.

Steiner, Richard (2010). Double standard: Shell Practices in Nigeria Compared with International Standards to Prevent and Control Pipeline Oil Spills and the Deepwater Horizon Oil Spill. This report is written on behalf of: Friends of the Earth Netherlands. 2010-50-4435%20LR.pdf

Tashakkori, A & Teddlie, C, (1998). Mixed Methodology Combining Qualitative and Quantitative Approaches. Thousand Oaks, CA, Sage Publications.

Teddlie, C. & Tashakkori, A. (2009). Foundations of mixed methods research: Integrating quantitative and qualitative approached in the social and behavioral sciences. London: SAGE.

Taleghani, N. D., & Tyagi, M. (2017). Impacts of Major Offshore Oil Spill Incidents on Petroleum Industry and Regional Economy. Journal of Energy Resources Technology, 139(2), 022913. doi: https://10.1115/1.4035426

Wang Y-C (2011). Short-and Long-run Environmental Kuznets Curve: Case Studies of Sulfur Emissions in OECD Countries. Online; accessed 12/05/ 2020. Google Scholar


This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials.
You may use the digitized material for private study, scholarship, or research.

Back to previous page

Installed and configured by Bahagian Automasi, Perpustakaan Tuanku Bainun, Universiti Pendidikan Sultan Idris
If you have enquiries with this repository, kindly contact us at or Whatsapp +60163630263 (Office hours only)