CSOs hail NUPRC’s decision to reject Shell’s Onshore Oilfields Sale, want Niger Delta mess fixed

BENIN CITY, NIGERIA – October 16, 2024 – The Peoples AGM, a broad coalition of over 60 Civil Society Organisations (CSOs) committed to environmental and social justice, has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its decision to reject Shell’s proposed $1.3 billion sale of its onshore oilfields to the Renaissance Group and called on Shell to fix its mess before running away.

Executive Director of Africa Network for Environment and Economic Justice, (ANEEJ) and Convener of the group, Rev David Ugolor while applauding NUPRC’s decision said the rejection of the sale of Shell’s onshore oil fields is not only a win for environmental accountability but also a signal that oil companies will no longer escape the consequences of their actions.

“NUPRC’s refusal to approve the sale, citing Renaissance Group’s inability to manage even 50% of their existing assets, marks a significant win for environmental oversight in the Niger Delta, where Shell’s operations have historically led to environmental degradation and persistent human rights violations. We applaud NUPRC for rejecting this deal, which would have transferred critical oil assets to entities without proven capacity to manage them responsibly. This decision is a victory for Niger Delta communities, who have long endured the devastating environmental impact of oil exploration by Shell and other Multinational Oil Companies. Shell has to remain in Nigeria to fix their mess! It’s time for the Nigerian government to ensure that Shell and other oil multinationals do not evade their environmental responsibilities,” Ugolor remarked.

Inyingi Irimagha, Senior Programme Officer at Gender and Development Action (GADA) and member of the Peoples AGM, stressed the urgent need for a robust regulatory framework to hold oil companies accountable. She noted that NUPRC should include clauses in the sale of Shell’s onshore assets to address unresolved environmental and social issues, ensuring these liabilities are not passed to domestic companies. Irimagha warned that Nigeria’s judiciary, vulnerable to financial inducements, may not provide fair justice to affected communities, making it crucial to resolve these grievances before the sale.

“It is important that the NUPRC includes provisions in the sale of Shell’s onshore assets to ensure that any outstanding grievances or environmental concerns are adequately addressed prior to any sale or transfer. These liabilities should not be shifted to domestic companies. In a context where the judicial system faces challenges related to financial influence, there is a risk that affected communities may not receive fair redress through national legal channels. To promote fairness and sustainable outcomes, it is essential that all environmental and social issues linked to Shell’s operations are resolved before ownership is transferred to indigenous companies. Well-known Civil Society Organisations must affirm this before they are allowed off the hook,” Irimagha added.

Lending his voice to the development, Pastor Promise Anagbara, Coordinator of International Affairs at the Ogoni Indigenous Ministers’ Forum, stressed the importance of holding oil companies accountable for the extensive damage caused by years of pollution in the Niger Delta. He emphasized that the government must enforce the ‘polluter pays’ principle on multinational oil companies and ensure that any sale of oil assets is contingent upon full remediation of environmental damage. Anagbara further noted that justice and restoration for Niger Delta communities can only be achieved if companies like Shell are held fully accountable for their actions.

“The Ogoni people reject all attempts by Shell and its associated companies to silently run away from environmental crimes. We thank NUPRC for understanding our pain and agony in the hands of shell and we urge our government and the international community to monitor the environmental devastation and cleanup exercise in the Niger Delta, especially in Ogoni land,” said Pastor Promise Anagbara.

The coalition cautioned that without a strong framework for environmental liability, oil companies will continue prioritizing profits over people, leaving communities to suffer from pollution, ecosystem collapse, and climate-related disasters. The Peoples AGM reiterates its commitment to climate and environmental justice from a grassroots perspective and urged the government to ensure that local communities and indigenous groups are actively involved in crafting climate policies and measures to guarantee that these policies genuinely address their needs and priorities.

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