Global and national records have shown that petroleum stands out as the mainstay of the Nigerian economy over the decades. This resource has significantly improve the national income of the nation and relatively provide gainful employments for significant citizenries. However, the continuous crude oil exploration and exploitation activities continues to gain global attention. This is as a result of the incessant environmental degradation, which have directly and indirectly tampered with the means of livelihood. In view of this, the study socio-economic implications of oil exploitation in Ilaje local government area of Ondo State, Nigeria. unimaginably impacted on the growth, development, civilisation and sustainability of the Nigeria’s spatial development than any other natural resources recorded in the past decades. However, the impacts recorded over the decades do not translate to sustainable land utilisations, management and development in the coastal areas of Nigeria, where oil exploitation processes have resulted into intense environmental degradation, ecological devastation and the diverse physical planning distortion in Ilaje Local government area. The paper adopted direct observation, questionnaire administration and oral interview respectively in the quest to obtain the needed data. The paper identified distortions in land uses, land degradation, increased poverty and difficulty in land use planning. The paper therefore as a result of the effects of oil exploitation, advocated for land appropriation in the coastal area, use of bioremediation approach, and empowering interviewing organisation towards revamping the deplorable ecological landscape of the area. Keywords: Physical Planning, Oil Exploitation, Degradation, Poverty. The continuous degradation of environmental ecosystems (land, water and soil) resulting from crude oil exploration and exploitation activities continues to gain global attention. This study investigates the effects of crude oil exploration and exploitation activities on soil, water and air in the study area.