International Journal of Management Science 2015; 2(5): 84-92 Published online September 10, 2015 (http://www.aascit.org/journal/ijms) ISSN: 2375-3757 Keywords Niger Delta, Environmental Degradation, Environmental Regulation, Policy, Rural Communities Received: July 30, 2015 Revised: August 13, 2015 Accepted: August 14, 2015 The Dilemma in Nigerian Petroleum Industry Regulations and Its Socioeconomic Impact on Rural Communities in the Niger Delta Philip E. Agbonifo University of Wales/Greenwich School of Management, London, UK Email address philipagbonifo@yahoo.co.uk Citation Philip E. Agbonifo. The Dilemma in Nigerian Petroleum Industry Regulations and Its Socioeconomic Impact on Rural Communities in the Niger Delta. International Journal of Management Science. Vol. 2, No. 5, 2015, pp. 84-92. Abstract Environmental protection has considerable socioeconomic benefit, because the consequences of non protection like the situation in the Niger Delta communities are enormous. Regulations ought to be an intervening vehicle and a solution to the problem of environmental degradation. However, there is a manifest and continuing environmental degradation by oil and gas industry activities which points towards serious weaknesses in environmental regulations and standard setting. The failure of the environmental protection agencies to account for community’s perspectives provides a fertile ground for environmental degradation to persist. Thus, this paper identifies various shortcomings of the regulatory agencies, such as funding, inefficient allocation of resources, skilled manpower, institutional weaknesses, over centralisation and lack of political will as the plausible explanations that militate against the achievement of quality environment and sustainable development in the Niger Delta. The paper concludes that the lack of stringent measure left the oil and gas producing communities vulnerable with a long term social and economic consequences. 1. Introduction Oil and gas is the ultimate revenue source and the mainstay of the Nigerian economy as there is over dependence on oil and gas resources by all tiers of government (Federal, State and Local). But there appear to be a manifest and continuing environmental problems in the Niger Delta rural communities, the main source of the oil and gas wealth, which point towards weaknesses in policy regulation, standard setting and even policy failure. This is caused by a number of factors including weak or ineffective policy enforcement, lack of political will, and over centralization of regulation which provides a fertile ground for environmental degradation to persist. It is the assumption in government circles that “exercising the will power for defaulting multinational oil companies (MNOCs) degrading the environment might inevitably reduce government revenue from oil and gas and put many Nigerians out of employment” (Ogbonnaya 2011, p. 74). Continuing, he argued that it is deliberate government policies which aim to encourage inflows of direct foreign investment in the oil and gas industry, particularly against the backdrop of the continuous shifting of the gas flaring deadlines and the meagre penalties paid as fines for gas flaring in Nigeria”. Therefore, government inaction for environmental damage resulted loses in agricultural productivity, health hazard, poverty, conflict, migration and population displacement and other socioeconomic impact.