ABSTRACT: During the occurrence of pollution, contamination of the physical environment results in damagesto the affected ecosystems. These damages affect economic wellbeing of people whose livelihood is dependenton the affected environmental goods and services, and compensations are assessed and paid to the affectedwithout considerations for the damages caused to nature due to contamination. This study aims to evaluate thenecessity of liability assessment for restoration of damages in the compensation process, to create room forsound environmental management. The study examines the compensation process and its justification forequivalence in Degema and Gokana which are two Oil Pollution/contamination prone Local Government Areasin Rivers State, Nigeria. Following a review of relevant literature, questionnaire survey was conducted and it isconcluded that statutory provisions does not address compensation for contamination. It is recommendedtherefore that new regime of compensation practice be legislated to incorporate restoration through liabilityassessment.
Keywords: Compensation; Contamination; Environmental goods and services; Liability; Restoration