The Nigeria Supreme Court recently decided to permit the multinational oil and gas corporation, Shell Plc, a hearing associated with its alleged involvement in an oil spill in the Niger Delta. This verdict effectively overturns that of the Court of Appeal which had previously halted Shell’s local asset sale and instructed the payment of a judgment claim before the appeal could proceed.
The litigation against Shell originated in November 2020 in the High Court, which had subsequently ordered the company to pay NGN 800 billion as compensation to the Ebubu community in River state, who claimed that an oil spill from Shell had resulted in detrimental effects to their waterways and farms.
Shell’s legal challenges are not restricted to Nigeria. In May 2023, the United Kingdom Supreme Court in Jalla v. Shell International Trading and Shipping Company ruled in favor of the company, concluding the petitioners were “too late” in filing the case against Shell for the 2011 offshore oil spill.
In contrast, the Dutch Court of Appeal in a 2021 ruling held Shell liable for oil pollution in Nigeria and validated the claims of four Nigerian farmers and Friends of the Earth, an environmental organization. Following the ruling, Shell agreed to pay EUR 15 million to the affected Nigerians in December 2022.
Concerns aren’t only judicial. The United Nations Environment Programme (UNEP) in 2011 released a report outlining the devastating impacts of these oil spills in Ogoniland, Nigeria. The report suggested immediate clean-up measures with an initial investment of USD 1 billion for the first five years, a recommendation that has not been successfully implemented as per a 2020 report by Amnesty International.
Another report from Amnesty International published in May 2023 highlighted flaws in the process of preparing “Joint Investigation Visit” reports, a requirement under local regulations for assessing the extent and impact of oil spills. This flawed process, along with recurrent oil spills, infringes upon the human rights of local communities, as Amnesty International Nigeria’s Director, Osai Ojigho, voiced concern about in February 2023.
As the final ruling from the Nigeria Supreme Court is anticipated, the case’s repercussions will be closely tracked by both local communities and international environmental organizations, marking another chapter in the ongoing narrative of corporate accountability for environmental harm.