Sixty years of oil exploration in Nigeria have led to cases of environmental damage being heard in foreign courts because the Nigerian judiciary is not trusted. This is not the development promised by the oil boom, writes Uche Igwe.
In February 2024, Niger Delta king Godwin Bebe Okpabi, leader of the Ogale community in Ogoni land, sued Shell for decades of oil pollution and the destruction of livelihoods. He is demanding a clean environment and compensation worth £88 million. He argues that leakages from oil exploration and exploitation in his community have had devastating effects on the livelihoods of community members. Farmland and drinking water have been polluted, which has caused devastating implications for people’s health. The case is being heard at the High Court in London where the company is based rather than in Nigeria where the actions took place.
The Nigerian government has a track record of glossing over environmental pollution complaints. The country was once described as the world pollution capital. The government always appears to be on the side of the international oil companies operating in Nigeria, which it relies on for tax revenue. The perception is that the government continuously seeks ways to appease the companies to ensure steady cash flow.
Most Nigerian agreements with oil companies are in the form of joint ventures. In these arrangements, partners have a share in both the profits and the liabilities that come with oil production. As a result, any fines incurred become the responsibility of both parties and must be shared according to the percentage contained in the JV agreement. The government seems to pay less attention to the demands of communities for ecological justice in the Niger Delta partly because such demands will have financial implications on them as well as the oil companies.
Shell and the Ogoni people share a contentious history. In 1994, a chain of events led to the murder of four prominent Ogoni leaders by irate youths. The renowned environmental activist Ken Saro Wiwa and his eight kinsmen were blamed for the killings and subsequently executed by the military junta led by dictator Sani Abacha.
Shell left Ogoniland in 1993, and it did so quickly amidst widespread social unrest and protests. Many of its facilities were not properly decommissioned, and some of their old pipelines, which have not been maintained for decades, reportedly still carry oil through the area.
A loss of confidence in Nigeria’s judiciary
The fact that the case is before a court based in the United Kingdom for an issue that took place in Nigeria confirms the claimant’s lack of confidence in the judiciary in Nigeria. It is a widespread problem. Recently, the World Justice and Rule of Law Index ranked Nigeria 120th out of 130 countries for judicial accountability.
In 2021, a survey conducted by Gallup, a US consulting firm, revealed that only 36 per cent of Nigerians trust their country’s judges. According to a 2020 Judicial System Perception Poll conducted in collaboration with the Nigerian National Bureau of Statistics, 88 per cent of Nigeria’s citizens perceive corruption to be common in the judicial system. Another 63 per cent of the population described their experience with the judicial system as negative, suggesting that justice is for sale to the highest bidder.
This is not the first time that a court case for damages caused by international oil companies has been heard abroad. There is a history of compensation being paid to several communities in the Niger Delta region. In 2015, Royal Dutch Shell announced a financial compensation of £55 million pounds to 15,600 farmers and fishermen in Bodo, in Ogoniland, who were impacted by oil spills in 2008 and 2009. In 2021, the Anglo-Dutch oil giant agreed to pay an equivalent of £81 million pounds (45 billion naira) to end a case of oil spill with Ejama-Ebubu, a community near Eleme in Rivers State. Another £12.2 million was paid to communities, families and farmers impacted by oil spills in Ikot-Ada Udo, Oruma and Goi in the Niger Delta. All of these cases were heard in the jurisdiction where the company is based, not where the actions took place in Nigeria.
Oil exploitation has left undeniable negative ecological footprints in the Niger Delta region. Years of delay and double standards in implementing necessary remediation and restoration have left communities helpless leading to distrust that often precipitates violence. With some of the oil companies already divesting it remains unclear who will take responsibility for the toxic legacy that would be left behind.
The oil boom promised to bring prosperity to Nigeria. While some have undeniably benefited, the wealth has not gone to creating a strong judiciary that would benefit all Nigerians. Meanwhile the environmental cost of the resource extraction is being faced by local people. Demands for compensation by farmers whose livelihoods have been destroyed are valid. It is consistent with the polluter pays principle. However, a more sustainable approach would be a complete restoration of the farmlands so that incoming generations can make use of them years later rather than a simple one-off payment.