Environmental damages: Niger delta communities sue shell corporation for N500 billion

Communities in the oil-rich Niger Delta are demanding 505 billion naira ($310 million) in damages from Shell, alleging that the company breached a court order by continuing with the sale of its onshore assets in the region. The legal action, initiated on Friday, accuses Shell of flouting a December 2023 court ruling that prohibited any asset sales until a compensation lawsuit was resolved.

Shell, which has committed to exiting Nigeria’s onshore oil and gas sector, announced in January its plan to sell its operations to a consortium of five mostly local firms for $2.4 billion. This is part of Shell’s broader strategy to divest from its onshore activities in Nigeria.

However, over 1,200 representatives from the Ilaje communities in the Niger Delta have filed a petition with the Federal High Court in Abuja to stop the transaction. They argue that Shell’s actions violate the court’s suspension of the sale pending the resolution of the compensation case.

The communities are suing Shell for alleged environmental damage caused by oil spills that they claim have ruined waterways and farmland. Shell has consistently argued that the spills are primarily due to theft and vandalism, rather than operational failures.

Despite these claims, the communities believe that Shell’s decision to continue with the asset sale is a direct defiance of the court’s orders and an attempt to avoid accountability. They are seeking penalties for Shell’s disregard of the court’s preservation orders and argue that the ongoing suffering of their members results from Shell’s non-compliance with judicial directives.