A review of the effects of actions and transactions considered in the decision-making processes on oil exploitation projects in the Niger Delta region has been carried out. These effects are identified, assessed, and evaluated against the economic advantages arising out of a given action and transaction. There are 606 oil fields in the Niger Delta region, out of which 360 are on-shore and 246 are offshore and Nigeria is at present the largest oil producer in Africa and the sixth largest in the world.It is reported that there have been several oil spill incidences in Nigeria over the years, ranging from minor spills to over half a million barrels in one single incident. Oil spillage had given rise to unproductive soil and polluted water systems thereby destroying the agricultural and fishing activities in the region, thus affecting the socio-economic activities of the people, inducing antagonistic relationship between the oil companies and the host communities. It is recommended that there should be community participation and involvement in policy making, and Government should undertake a review of laws and policies affecting the relationshipbetween the oil companies and their host communities including the Land Use Act.
