The primary goal of this study was to isolate hydrocarbon-degrading organisms and assess their ability to bioremediate petroleum-contaminated soil and water. Nigeria is one of the major oil producing countries and petroleum contamination is widespread in agricultural soil. Alcaligenes sp. strain 3k was isolated from a kerosene-polluted soil in Ilorin, Nigeria. We also assessed its ability to degrade plant lignin, as lignin is a complex aromatic heteropolymer commonly found in soil and aquifer environment.  Strain 3k was originally grown on mineral salts medium with kerosene as a sole energy and carbon source. The capacity of the isolate to degrade both aromatic, aliphatic hydrocarbons and lignin-like compounds was tested. Among the tested compounds, the organism utilized kerosene, hexadecane, cyclohexane, phenol and benzoate as the sole sources of carbon. In addition, strain 3k also degraded various lignocellulose compounds as the sole source of carbon.  However, hexane, benzene, toluene, ethylbenzene and xylene were not metabolized. Our study demonstrates that soil organisms like Alcaligenes could play important role in the reclamation of petroleum-contaminated soil and water.  Utilization capacity of lignin as the sole carbon source suggest that these organisms can survive on plant detritus and also have the ability to degrade hydrocarbons upon accidental or deliberate contamination of agricultural soil and water.