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Nigeria’s Supreme Court upholds freeze on sale of Shell’s asset in dispute over 2019 oil spill in 88 Niger Delta communities

Ada Okafor by Ada Okafor
June 21, 2022
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Nigeria’s Supreme Court has upheld a lower court ruling that stopped Shell Plc from selling its assets in Nigeria until a dispute between the oil major and a Niger Delta community over a 2019 oil spill is resolved.

The High Court in March barred Shell from any asset sale in Nigeria until a decision is reached on the dispute.

Eighty-eight communities in Rivers state were awarded $1.95 billion compensation for an oil spill they blamed on Shell and which damaged their farms and waterways.

Shell, which denied causing the spill, appealed the compensation verdict and the ruling blocking the sale of its assets. The company then went on to advertise for bids for the assets after filing an appeal.

But the Supreme Court, in a ruling dated June 16, said the parties should “maintain the status quo” until a hearing of all applications from Shell and the communities later this year.

“What the status quo means here is that there should be no bids, no sales until the hearing of the applications which has been fixed for November 3, 2022,” Mohammed Ndarani, the laywer representing the Delta communities told Reuters on Monday.

A Shell Spokesperson did not immediately respond to a request for comment.

Shell wants to sell its stake in Nigeria’s onshore fields, where it has been active since the 1930s, as part of a global drive to reduce its carbon emissions.

The company, the most significant international oil major operating in Nigeria, has faced a string of court cases in the past over oil spills.

In April, Shell said the volume of crude oil spills caused by sabotage in the Delta more than doubled to 3,300 tonnes last year, a level last seen in 2016.

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Minister Unveils Zamfara Power Policy, Unlocking Solar for 147,000 Homes, Businesses  

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By Gloria Akudoro   The Minister of Power, Joseph Tegbe, has launched the Zamfara State Electricity Policy alongside two commissioned solar plants of 2.5MW capacity to boost electricity supply.  Tegbe also broke foundation for 36 solar minigrids across nine local government areas, projects expected to power nearly 147,000 homes and businesses upon completion.   Speaking in Gusau alongside Governor Dauda Lawal, the Managing Director of Rural Electrification Agency, Abba Aliyu, Development Partners, and Traditional and Community Leaders, the Minister credited the initiatives to the Renewed Hope Agenda of President Bola Tinubu.  "The initiatives put the Renewed Hope Agenda into practice by “turning reform and investment into better public services, cleaner transport and more dependable electricity for homes and businesses,” he said.  The commissioned plants are a 1MW mini grid / 2.4MW BESS at the Ahmed Sani Yariman Bakura Specialist Hospital, which will help doctors operate with greater confidence and preserve essential medicines, and a 1.5MW / 3.6MW BESS for the Government House and its auxiliary facilities which will eliminate dependence on diesel based power generation.   Of the mini grids, the interconnected projects in Gusau and Kaura Namoda will improve supply on the existing distribution network, while the other 34 will serve communities beyond the grid’s present reach.  Zamtaxi, also unveiled, opens opportunities for drivers, technicians and young entrepreneurs in cleaner transport.   According to the statement on Wednesday by the Federal Ministry of Power, Tegbe credited President Bola Ahmed Tinubu, whose assent to the Electricity Act 2023 created greater room for states and investors to participate in the sector. He pledged the Ministry’s support “to translate this policy into effective institutions and improved service.”   The Minister, while congratulating Zamfara on 30 years of statehood,  urged host communities to protect the assets as their own and to report vandalism and theft promptly.  He also commended the Executive Governor for driving and sponsoring the two (2) commissioned minigrid projects amongst other solar powered projects in the state, including solar power for 15 general hospitals 800 schools and 70 Primary Health Care facilities.   The Zamfara 36 minigrid projects form part of President Tinubu’s Renewed Hope Agenda drive to bring electricity to all Nigerians. Alongside strengthening the national grid, the Federal Government is expanding solar power and other viable sources, bringing supply closer to demand and reaching communities previously without access.  For Zamfara, that means a more resilient, more diverse electricity system, and dependable power for the homes, hospitals, farms and markets that depend on it. 

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