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 Furthermore, the regulatory bodies are not working effectively and some of the country‘s regulations are out of date.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.
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