The physical presence of the oil industry in Nigeria is so large and has resulted in a lot of activities in the upstream sector which has deleterious effects on ecosystem stability and local biodiversity – which the peoples‘ livelihoods depend upon. This research provides an overview of environmental issues in the oil and gas industry in Nigeria with specific focus on oil spillage and also highlights the best approaches to achieving high environmental performance in the oil and gas industry in Nigeria. The materials for this research include the use of existing reports on the oil and gas industry in Nigeria to acquire the required information. Comparative study method was used in which the data obtained Nigerian National Petroleum Company Annual Statistical report for 2013 and Shell Nigeria Monthly/ Annual statistical Reports for 2013 was analysed and logical deductions and sequential presentation of facts were thus made. It was observed in this study that oil spills occur more as a result of vandalisation than rupture during operations. Shell Nigeria has a record of oil spill amounting to about 3.038 billion barrels over a period of ten years (2003 to 2012) from their pipelines alone. The number of incidences of oil spill recorded by Shell Nigeria reduced within the period of 2007 to 2013 from 320 to 200 respectively. Also, it was observed that since 2010 the volume of oil spill has dropped significantly from 102, 000 barrels of 2009 to 20,000 barrels in 2013. Furthermore, the regulatory bodies are not working effectively and some of the country‘s regulations are out of date. Hence, a need for the government to review the regulatory laws and device an efficient means of enforcing them whenever necessary.

The oil and gas industry is truly global, with operations conducted in every corner of the globe, from Alaska to Australia, from Peru to China, and in every habitat from Arctic to desert, from tropical rainforest to temperate woodland, from mangrove (as is the case in the Niger Delta region of Nigeria) to offshore. The global community will rely heavily on oil and gas supplies for the foreseeable future. World primary energy consumption in 1994 stood at nearly 8000 million tonnes of oil equivalents; oil and gas represented 63 per cent of world energy supply, with coal providing 27 per cent, nuclear energy 7 percent and hydro-electric 3 per cent (BP Statistical Review of World Energy, June 1995).

The exploitation of oil and gas reserves has not always been without some ecological side effects. The challenge is to meet world energy demands, whilst minimizing adverse impact on the environment by conforming to current good practice. Oil spills, damaged land, accidents and fires, and incidents of air and water pollution have all been recorded at various times and places. In recent times the social impact of operations, especially in remote communities, has also attracted attention. The oil and gas industry has worked for a long time to meet the challenge of providing environmental protection. Much has already been achieved but the industry recognizes that even more can be accomplished (Adati, 2012).