CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
       The Niger Delta region is located in the Southern part of Nigeria. The  region is characterized by Swamps and high rainforest but through which the Niger River flows into the Atlantic Ocean multiple estuaries. The Niger Delta region is Nigeria’s treasure base. It represents the country’s economic heartbeat endeared with petroleum often referred to as the precious black-gold which earns over 90% of the country’s revenue. For over five decades, all the oil exploration and exploitation in the country had taken place within this region.
       Expectedly, the occupation of the inhabitants of this region is predominantly farming and fishing taking advantage of the presence of the rich rainforest and large body of water.
       According to Abati (2009:54) Nigeria Delta refers to the states of Cross River, Ondo, Imo, Abia, Edo, Rivers, Bayelsa, Akwa Ibom and Delta but more directly the last four states which face more peculiar problems. It is one of the largest wetland in the world and clearly, the largest inAfrica.
       It is a trite point that oil is important to the world as a major source of energy. Anywhere in the world where the vehicles tank is being filled with gasoline, or an engine is being run with diesel or any other fuel, a lantern or store is being  filled with kerosene, or any petroleum based product is being used, there is a linkage to a complex process that involves exploration, refining, high-tech engineering and technology, human and material resources, the politics of nations and the rights and expectations of human beings.
       Nigeria is at the centre of this process as the sixth largest producer of oil in the world and the largest oil producing country in Africa.
       Oil was first discovered in Nigeria in 1908 but commercial exploration did not commence until the discovery of oil in Olobiri (now in BayelsaState) in march 1957 (Abati 2009:54).
Nigeria’s inability to develop local capacity in oil exploration and to acquire the required technology, has made it possible                                                                                                          for the multinational corporations engage in joint venture partnerships with it to get way with lopsided contractual agreements.
       Nigeria is fully aware of its importance as an oil producing country and almost all the wealth that came the way of the country last fifty years (50 years) or more has been derived from oil.
       However, before the discovery of oil in the Niger Delta, every region in Nigeria has means of generating wealth for development of their regions. There was great competition  among the regions to see which would surpass the other in terms of development.
       But the discovery of oil and the oil boom suddenly put an end to this as all Nigeria wanted a share of the national cake.
       In the 1963 constitution, derivation was fifty percent (50%) and federal government got only thirty percent (30%). The same constitution granted the ownership of the continental shelf to the regions. By 1966, this had been constructively jettisoned controlling Nigeria oil resources became the federal government’s compulsive obsession. The civil war further exposed the strategic value of the oil resources in Niger Delta and as the military seized control of power and politics, exercising control over oil and revenue became a major task. In 1970, derivation had been reduced to forty five percent. (45%).