The Nigerian government is facing mounting pressure to uphold President Bola Ahmed Tinubu’s decision to block Shell’s controversial divestment of its onshore oil fields. A coalition of 175 international and local organizations, led by Human and Environmental Development Agenda (HEDA Resource Centre), is urging the government to resist Shell’s efforts to push through the sale of its assets under the Shell Petroleum Development Company (SPDC) to Renaissance African Energy—a Special Purpose Vehicle based in the British Virgin Islands with murky ownership.
Concerns raised by the coalition focus on Renaissance’s lack of transparency, questions surrounding its technical and financial capacity, and the potential risks to host communities. Shell is financing 70% of the acquisition, raising further doubts about Renaissance’s independence and ability to manage assets responsible for 30% of Nigeria’s oil production.
The government’s stance is backed by a report from S&P Global, an international consultancy firm hired by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The report highlighted major issues with the deal, particularly Shell’s environmental record in Nigeria. It flagged concerns about Shell’s inadequate estimates of the environmental damage caused by its operations, with the Bayelsa State Oil and Environment Commission estimating cleanup costs in Bayelsa at $12 billion—much higher than Shell’s projections.
In a letter addressed to the NUPRC’s Commission Chief Executive, Engr. Gbenga Komolafe, and copied to President Tinubu, HEDA Chairman Olanrewaju Suraju expressed dismay at the NUPRC’s silence on the Shell-Renaissance deal. The commission had swiftly announced approvals of other divestments, such as the Eni-Oando and Equinor-Project Odinmim deals. This silence suggests alignment with S&P Global’s recommendation to reject Shell’s proposed transaction.
The coalition expressed alarm over reports that Shell may be pressuring government officials to overlook the findings of S&P Global’s assessment. While no direct accusations of bribery have been made, HEDA emphasized that these reports warrant serious investigation. The matter has been referred to relevant regulatory and investigative bodies for review.
HEDA, along with its coalition partners, is calling for the immediate public release of the S&P Global report, emphasizing the need for transparency. “This report was commissioned with public funds, and NUPRC has a duty to ensure accountability in this process,” said Suraju. The coalition is prepared to pursue all legal avenues to protect Nigeria’s environmental and economic interests.
Key members of the coalition include the Civil Society Legislative Advocacy Centre (CISLAC), Youths and Environmental Advocacy Centre (YEAC-Nigeria), Ijaw Elders Forum Lagos, Friends of the Earth International, Greenpeace Africa, and many others from both national and international spheres. Together, they are committed to ensuring that the Shell-Renaissance deal does not move forward without due diligence and full transparency.