• NUPRC mum as SOMO alleges external pressure
• NUPRC, Shell may face charges over contempt of court
• Host communities to petition NSA, others over possible unrest 

The reported approval of Shell Petroleum Development Company’s (SPDC) $2.4 billion asset divestment to Renaissance Africa Energy Holdings continues to face widespread criticism, as concerns rage over ongoing litigations and outstanding liabilities of the multinational.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and President Bola Tinubu are also facing backlash for allegedly undermining accountability, the rule of law and the rights of oil-producing communities over the development.The Guardian learned that some organisations are planning legal action against Shell and NUPRC for contempt of court. The groups have vowed to reverse the deal.

The Centre for Research on Multinational Corporations (SOMO) has also alleged that undue pressure was exerted on Nigerian authorities to approve the divestment.

NUPRC, late last year, said the deal was rejected because it could not scale a “regulatory test”. The recent announcement on the sale came only from Shell and Renaissance, unlike other divestments in the country.

Chief Executive of NUPRC, Gbenga Komolafe, did not respond to The Guardian’s enquiry on the veracity of the claim that the divestment has secured regulatory approval.

Currently, local communities are asking for over N500 billion in environmental damages amidst calls for clean-up of areas allegedly polluted by Shell. At the same time, a company, Global Gas & Refining Limited (GGRL) among others, is charging the company $500 million over a failed gas supply deal.

Stakeholders expressed fear the Nigerian consortium, comprising ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited and Waltersmith Group, may have to bear the burden of the liabilities.

More than 1,216 residents from host communities have filed a N500 billion lawsuit against Shell, citing violations of an existing Mareva injunction.  A Federal High Court sitting in Abuja, in a lawsuit No: FHC/ABJ/CS/1300/2024, had earlier barred Shell from proceeding with the sale pending the determination of an ongoing litigation.

However, the Anglo-Dutch oil giant went ahead with the transaction, disregarding its legal obligations. A document made available to The Guardian also showed that Shell had previously committed not to take any actions that could affect the subject matter of Suit No: FH/ABJ/CS/413/2024, filed by Global Gas & Refining Limited (GGRL).

Komolafe had also signed an undertaking to respect the court’s directive but allegedly facilitated the deal’s approval in a clear violation of the order.

In a development that appeared like one of the many past controversial divestments, a coalition of 40 NGOs, including Amnesty International, had raised concerns over the transaction, urging that the sale should not be approved until Shell’s environmental damage has been thoroughly assessed.

Acting Co-Executive Director of SOMO, Joseph Wilde, condemned the sale, calling it a “devastating blow” for Niger Delta communities suffering from decades of oil pollution.

“The regulator’s decision raises serious questions about the pressure exerted on Nigerian authorities. This is not the end of the story. With our Nigerian and international partners, we will continue the fight to hold Shell accountable and ensure the company cleans up and pays up,” Wilde said.

Executive Director of the Health of Mother Earth Foundation (HOMEF), Nnimmo Bassey, described the development as disturbing, arguing that it reflects the overwhelming influence of multinational corporations over Nigeria’s regulatory agencies.

“The deal lacks clarity concerning Shell’s historical socio-ecological devastation of the Niger Delta and ongoing environmental ecocide. The Nigerian government must assure citizens that corporations cannot evade accountability without due consultation with affected communities,” Bassey stated.

A renowned geologist and publisher, Toyin Akinosho, also expressed concerns, saying: “I should be worried about anything that bypasses court orders.” An energy business analyst, Dr Kaase Gbakon, acknowledged the move as part of a broader effort to deepen local participation in Nigeria’s oil and gas sector but noted lingering challenges.

“Initial concerns over the asset sale revolved around the technical capacity of the consortium and responsibility for environmental remediation. In October last year, the regulator indicated it would only approve the deal if Shell accepted responsibility for oil spills and committed to clean-up efforts. It is unclear if that condition was met,” he said. Gbakon added that the new owners must now address legacy environmental and legal issues while securing substantial investment.

“The government’s primary focus is to boost oil production. However, supporting this objective will require overcoming significant hurdles, including security concerns, environmental damage, and legal disputes. The government may also face pressure to provide financial incentives,” he warned.

Chairman of the Board of Trustees for the Community Development Committees (CDC) of Niger Delta Oil and Gas Producing Areas, Joseph Ambakederimo, condemned the federal government’s handling of the deal, questioning why the announcement was made by the transaction beneficiaries rather than the regulator.

“Why has NUPRC abdicated its oversight role? No engagement has taken place with the communities affected for over six decades. This is yet another instance of the regulator’s failure to deliver on promises,” he said.  Ambakederimo warned of potential unrest, adding that impacted communities may take drastic action if their concerns are ignored.

“Prioritising financial gains over the health and well-being of affected communities is criminal. We will resist this oppression. If Shell, with all its technological expertise, could not clean up its mess, how can Nigerian operators do better? The communities have waited for over sixty years, and we will not remain silent. If necessary, we will mobilise our people to shut down these oil wells,” he declared.

According to him, a formal petition will be submitted to the National Security Adviser, Department of State Security (DSS), Nigeria Police Force and the military to inform them of potential community action.

Renaissance Spokesman, Tony Okonedo, who was asked the plan of the company regarding the many pending litigations and liabilities, did not respond to The Guardian at press time.