Nigeria's Economy
The Niger Delta: Oil, Pollution and Conflict
How oil production brought pollution and conflict to the Niger Delta, the costs of oil theft, and efforts to clean up and share benefits.
The Niger Delta produces most of Nigeria’s oil but remains poor.
Pollution
- Oil spills from pipelines and theft damaged farmland, fishing waters and mangroves.
- A 2011 UNEP report on Ogoniland said clean-up could take up to 30 years.
- Communities sued Shell in Dutch and UK courts, winning some compensation.
Conflict
- Militant groups attacked oil facilities in the 2000s, demanding a share of oil wealth.
- An amnesty programme in 2009 paid militants to disarm.
Oil theft
- Bunkering (stealing oil from pipelines) and illegal refining cost Nigeria large volumes of output.
- Output fell to multi-decade lows around 2022.
Benefit sharing
- 13 percent derivation: oil-producing states receive 13 percent of oil revenue.
- The Petroleum Industry Act, 2021 created host community trusts funded by oil companies.
Divestment
Shell and other international firms sold onshore assets to Nigerian companies in the 2020s, shifting production to local firms.
The polluted creek
A fisherman in Ogoniland finds his creek covered in oil from a leaking pipeline, destroying the fish that fed his family.
Thinking oil regions benefit most from oil
The Niger Delta suffered pollution, conflict and poverty.
Key takeaways
- The Niger Delta produces most oil but remains poor.
- Spills damaged farming and fishing; Ogoniland clean-up could take decades.
- Oil theft cut output sharply.
- The 2021 Petroleum Industry Act created host community trusts.
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