HEDA, 175 Organisations Urge Nigerian Govt to Uphold Rejection of Shell’s Divestment Deal
September 9, 2024 By Okafor Joseph
The Human & Environmental Development Agenda (HEDA) Resource Centre, alongside over 170 local and international organizations, has issued a petition urging the Nigerian government to stand firm against pressure from oil giant Shell to reverse its decision regarding the company’s divestment of onshore oil fields. This petition is particularly directed at Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The focus of the petition is Shell’s attempt to sell its Nigerian onshore oil assets to Renaissance African Energy, a company registered in the British Virgin Islands. However, the Nigerian government, under the leadership of President Bola Tinubu, has declined to approve the transaction, based on recommendations made by S&P Global, an international assessor.
The petitioners, which include both Nigerian and global organizations, have expressed concerns about the transparency and integrity of the proposed deal. Renaissance African Energy, the company looking to purchase Shell’s Nigerian subsidiary Shell Petroleum Development Company (SPDC), has raised alarm due to its opaque ownership and registration in an offshore tax haven. This, combined with the red flags raised in S&P Global’s assessment, has led to widespread opposition to the deal.
While the NUPRC has approved similar divestments by companies such as Eni-Oando and Equinor-Project Odinmim, it has remained silent on the Shell-Renaissance transaction. According to HEDA and its coalition partners, this silence indirectly affirms the rejection recommended by the international assessor.
Olanrewaju Suraju, representing HEDA and the other groups, stressed the need for the Nigerian government to uphold its initial decision, which he believes is crucial for protecting Nigeria’s energy security and maintaining transparency in the country’s oil sector.
“The coalition is calling for the immediate public release of the S&P Global report on the proposed divestment of SPDC, which was commissioned using public funds. NUPRC has a responsibility to ensure transparency and accountability in this process,” Suraju stated.
The coalition has reported its concerns to the International Corruption Unit of the UK’s National Crime Agency, the FBI, and the U.S. Department of Justice, urging a thorough investigation into any undue influence by Shell on Nigerian government officials.
In addition to HEDA, other members of the coalition include the Civil Society Legislative Advocacy Centre (CISLAC), Youths and Environmental Advocacy Centre (YEAC-Nigeria), Ijaw Elders Forum, and Policy Alert, among others. International partners include Friends of the Earth International, Polluters Pay, Greenpeace Africa, and several others.
The coalition remains committed to pursuing all necessary legal avenues to ensure justice and environmental protection in Nigeria’s oil sector.
