Legal strategy for resolving the socio-economic and environmental symptoms of the resource curse in Nigeria: the role of impact and benefit agreements (IBAs)

Abstract

Traditionally, the discovery of natural resources raises the hope of such a state to secure wealth and economic growth. However, history shows that in some developing countries, particularly the resource-rich, many citizens do not actually benefit from the resource revenues. This is due to factors such as mismanagement of the resource revenues, lack of transparency and accountability and corruption among others. All of these factors are characterised by what is known as the ‘resource curse’ phenomenon. This article examines the resource curse phenomenon with reference to Nigeria’s oil-rich Niger Delta region. It considers a potential legal instrument, which is the Impact and Benefit Agreement (IBA) that could be used to resolve some of the problems characterised by the resource curse phenomenon in the region. Using Canada as a reference point, the article demonstrates that the adoption of IBAs can be an alternative legal strategy for resolving the socio-economic and environmental symptoms of the resource curse in Nigeria’s oil-rich region.