Shell faces legal storm over pollution after N/Delta onshore exit

Mkpoikana Udoma

Port Harcourt — A major legal showdown has begun at the Federal High Court in Yenagoa as communities and civil society groups sue Shell and the federal government over the oil giant’s divestment from its onshore assets in the Niger Delta, accusing the company of abandoning environmental responsibilities after decades of pollution.

The suit, spearheaded by His Royal Majesty, King Bubaraye Dakolo of the Ekpetiama Kingdom and Chairman of the Bayelsa State Council of Traditional Rulers, challenges Shell’s divestment of its interests in the Shell Petroleum Development Company, SPDC, without first undertaking environmental cleanup, infrastructure decommissioning, or paying compensation to affected host communities.

“This divestment is a crude attempt by Shell to run away from the disaster it created. We demand justice, not abandonment. Shell must clean up, compensate, and decommission. Only then can it leave,” Dakolo declared.

Communities seek legal redress after Shell’s exit

Shell, Nigeria’s largest oil operator for decades, has already completed the sale of its onshore oil assets. But the Ekpetiama people, through this suit, are insisting that the oil major’s exit should not serve as an escape route from environmental liabilities accumulated over 60 years of operation in the Niger Delta.

According to the statement of claim, Shell’s activities in the Gbarain oilfields within the Ekpetiama Kingdom in Bayelsa State led to repeated oil spills, routine gas flaring, and widespread environmental degradation.

The plaintiffs accuse Shell of devastating rivers, forests, and farmland, effectively crippling traditional livelihoods dependent on fishing and agriculture.

They are urging the court to declare the completed divestment unlawful in the absence of environmental remediation and decommissioning.

The suit also demands that regulators and the Nigerian government, particularly the Minister of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and the Attorney General of the Federation, be held accountable for failing to prevent the asset sale without due compliance.

The plaintiffs seek a court order to: “Restrain Shell and its successors from finalizing further asset transfers without fulfilling legal obligations;

“Compel the NUPRC and the Minister of Petroleum Resources to enforce environmental regulations under the Petroleum Industry Act;

“Protect the constitutional rights of Niger Delta communities to life, dignity, and a healthy environment.”

The Bayelsa Commission Report as evidence

The lawsuit draws heavily on the damning findings of the Bayelsa State Oil and Environmental Commission, BSOEC, which included experts from Africa, Europe, and North America. The Commission’s report painted a dire picture of oil pollution in Bayelsa State and identified Shell as a principal contributor.

It found that over 1.5 million people in Bayelsa are affected by severe hydrocarbon pollution. Communities were shown to be exposed to dangerous levels of carcinogens such as benzene and chromium, far beyond World Health Organization safety limits.

Contaminated creeks and ponds have become the only water sources for many, while soil samples revealed petroleum hydrocarbon concentrations that rendered farmlands infertile. Air quality readings near Shell’s former facilities showed particulate matter levels above health thresholds. Fish stocks have dropped by more than 70% in some areas, jeopardizing food security and livelihoods.

The report also found that Shell and other operators consistently failed to decommission aging infrastructure, leaving behind leaking pipelines, rusting equipment, and abandoned wellheads that continue to pollute the environment long after the cessation of operations.

Legal and moral accountability

“This action is about the right to a clean and healthy environment. Shell and its successors cannot evade liability by hiding behind asset transfers. The Nigerian Constitution and the African Charter are clear, corporate actors must be held to account,” said lead counsel to Ekpetiama community, Barrister Chuks Uguru.

Civil society groups supporting the case include Social Action Nigeria, the Health of Mother Earth Foundation, HOMEF, HEDA Resource Centre, Kebetkache Women Development Centre, and the International Working Group on Petroleum Pollution and the Just Transition in the Niger Delta, IWG.

“Shell wants to exit with profit, leaving behind toxic air, poisoned water, and broken communities,” said Dr. Isaac Asume Osuoka, Director of Social Action Nigeria. “We are here to say: no more.”

HOMEF Executive Director, Reverend Nnimmo Bassey, described the case as “a fight for justice in the most polluted oil region in the world. Shell must be compelled to restore what it destroyed.”

Dr. Kathryn Nwajiaku‑Dahou, co-convener of the IWG and Director at ODI Global, emphasized the global significance of the case: “If just transition is to be more than just a slogan, clean-up, restoration, and repair must be mandatory before companies walk away from fossil fuel sites.”

Professor Engobo Emeseh of the University of Bradford in the UK added: “This is not just a national matter. The outcome of this case could set a precedent across the Gulf of Guinea region and globally. It makes clear that divestment without accountability is unacceptable.”

Call for judicial action

With the matter now before the court, the coalition is calling on the Nigerian judiciary to take decisive action to uphold environmental law and the rights of indigenous communities.

“This is a defining moment for environmental justice in Nigeria. The judiciary has a unique opportunity to protect human rights, reinforce the rule of law, and show that no corporation is above accountability,” said Olanrewaju Suraju, Director of HEDA Resource Centre.

As legal proceedings continue, the case is expected to shape the future of environmental accountability in Nigeria’s oil sector and serve as a benchmark for corporate exit strategies across the developing world.

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