Chemistry Division/Soil Microbiology Unit, Nigerian Institute for Oil Palm Research (NIFOR), P.M.B. 1030. Edo State. Nigeria. Department of Agronomy, Soil Microbiology Unit, University of Ibadan, Oyo State, Nigeria. *Corresponding author: +2348035819393, +2348078188155 Email: firstname.lastname@example.org Soil samples impacted with palm oil mill effluent were collected from an oil mill in Benin City, Edo State. Samples were taken from six equidistant positions approximately 15 meters from each other including the point of discharge and the settling point in close proximity to the effluent discharge course. Samples collected at two depths (0-15 cm and 15-30 cm) were analyzed using standard procedures for the dynamics of specialized bacteria including phosphate solubilizing, nitrifying and lipolytic bacteria. Major nutrient compositions of the sampled soil were also determined. Data were analyzed using ANOVA and simple correlation. For the microbial dynamics, nitrifying bacteria were the most affected population, followed by the lipolytic bacteria and the phosphate solubilizing bacteria being the least affected at the soil depths. The results obtained showed that these specialized bacteria are substrate induced and POME serves as a rich substrate source for their proliferation. Their dynamics in POME could be used as a guide in harvesting and utilizing them as nutrient release enhancers and soil amenders for plant growth and increased agricultural productivity.