ABSTRACT
This project set out to examine the compensation of oil spill victims in the Nigerian oil industry. The compensation of these victims has become clumsy and dark in the wake of oil bunkering, pipeline vandalism, sabotage, since in the past, oil spill was as a result of the activities of the oil companies or operators. The object is to discuss who is responsible for payments of compensation to oil spill victims who are entangled in a political system that lacks legislative and administrative guidelines and framework that will effectively deal with the issue of petroleum compensations arising from sabotage, bunkering and even activities of multinational oil companies. Nigeria has become one of the most petroleum-polluted environments in the world. The impact of the oil spill include habitat degradation, pollution from gas flaring and these are cumulative and have acted synergistically with other environmental stresses to impair ecosystems and severely compromise human livelihoods and health. These unfortunate incidents make the victims individuals and host community, landowners, pond owners and other property owners to demand compensation. It is hereby recommended that the Nigerian government should set up oil pollution compensation funds that will make provision for compensation for oil pollution damage resulting from activities of not only multi-national oil companies but that of oil thieves, saboteurs and pipeline vandals. More so, legislations that will protect the environment of host communities and ensure timely adequate and fair compensation to them are to be urgently enacted.