Environment, peace and conflict are inseparable phenomena in Nigeria's historical development. Over the years and now environmental problems have taken centre stage of Nigeria political and economic discuss. Sometimes, environmental based issues leads to peace while at other times it contributes to conflict outbreak in Nigeria. Environmental conflict has produced group of scholars known as political ecologists whose aim is to unveil why rich natural resource areas are infested with prolonged conflict or crisis. However, scholars and practitioners of environmental are interested in environment and conflict in isolation of peace thereby neglecting how environmental factors contribute to peace building. To this extent, the study interrogates the nexus between the natural resources embedded in the environment (crude oil production specifically) and violent conflict that emanates thereof in Nigeria. The scope of the study is Niger Delta region of Nigeria and its environment. The study employs mixed method of data collection and analysis. The study concludes that environmental negligence by oil firms and the government on the other hand has contributed to conflict outbreak and retards peaceful coexistence among the people of Niger Delta. The study recommends that the government (whether at the Federal or State or Local Government level) must regulate and monitor the activities of the multinational oil companies and that of the host communities in the Niger Delta region.