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The paper investigated the perceived relationship between oil exploitation and environmental degradation and its’psychological implications in the Niger Delta region. Two groups of participants were sampled for the study. The first group was fifteen adult males and females, eight farmers, four males, four females, four fishermen and three fisherwomen. The age range was (53-65) years, with a mean age of 59 years. The first group provided the preliminary information through interviews and discussion. The second group was one hundred adult male and female workers, age 50-63 years, with a mean age of 56.5 years; one hundred male and female students, age range 27-35 years, with a mean age of 31 years. The second group of participants was drawn from the University of Nigeria, Nsukka. In all 215 freely participated in the study. An instrument named Perceived oil exploitation and environmental degradation (POEED) developed and validated by the author was used. It was a correlation research design and the Pearson Product Moment Correlation
was used. The item analysis and the correlation indices ranged from 0.37 to 0.84. The Alpha reliability coefficient was .92. Three hypotheses were tested. The result was highly significant r=.86 P