Shell faces new N505bn suit by Niger Delta communities over oil spill damage

Business a.m. Reporter

The Ilaje communities, located in the Niger Delta region have filed a lawsuit against Shell Plc, seeking N505 billion in damages.

The suit stems from the oil giant’s recent decision to sell off its onshore assets in the region, a move that the communities claim is in violation of a pre-existing court order.

According to the plaintiffs, Shell’s actions have not only disrupted the communities’ way of life and livelihoods but also caused irreparable damage to the environment, warranting the enormous compensation.

The latest lawsuit against Shell is a direct reaction to the oil giant’s earlier announcement that it was selling off its onshore oil and gas assets in the Niger Delta region.

The deal, initially valued at $2.4 billion but since depreciated to $1.3 billion, was made between Shell and Renaissance, a consortium of local companies. However, the transaction has been met with significant opposition, as it requires approval from the Nigerian government and other key stakeholders.

In a twist to the already complicated narrative, a group of 1,216 representatives from the Ilaje communities in the Niger Delta region have now brought a lawsuit against Shell in the Federal High Court of Abuja, requesting the court to halt the contentious deal.

The plaintiffs, represented by Mohammed Ndarani, a senior advocate of Nigeria (SAN), contended that the oil giant’s decision to sell its onshore assets directly conflicts with a court ruling issued in December 2023, which stipulated that any such sale should be postponed until the completion of a compensation lawsuit filed by the affected communities.

The situation facing Shell in the Niger Delta region continues to grow more intricate, as the Ilaje communities have filed a lawsuit claiming that Shell was responsible for an oil spill that caused damage to their environment, particularly waterways and farms.

Shell, on the other hand, has persistently refuted these allegations, attributing such spills primarily to acts of oil theft and vandalism. The company has argued that the destruction of oil pipelines by local individuals or groups has been a major source of pollution in the region.

In the court filings, the Ilaje community stated that Shell’s decision to proceed with the asset sale, in spite of the existing court ruling, should be met with appropriate sanctions.

The communities, who have been suffering from the adverse effects of the oil spill, expressed their dismay at Shell’s defiance of the court’s order, stating that the company’s actions have compounded their ongoing struggles and denied them a chance at justice.

The Ilaje communities have therefore sought relief from the Federal High Court by demanding that Shell pay N500 billion in damages and an additional N5 billion for legal costs within 48 hours of the court’s judgement.

Shell has found itself entangled in a series of legal battles with communities both domestically and internationally, as the oil giant is accused of environmental damage caused by historical oil spills, including the Permian Basin, a prolific oil and gas region in the United States.

The lawsuits, which seek either environmental restoration or compensation, have been mounting against Shell, as the communities impacted by the spills seek to hold the company accountable for its actions and the resulting damage to their environment.