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Home Business News

Court orders Shell to pay Ogoni communities N45.9 billion in 21 days

Chike Olisah by Chike Olisah
August 11, 2021
in Business News, Energy, Spotlight
Shell, Peremabiri Flow Station, Bayelsa
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A Federal High Court sitting in Abuja has ordered Shell Petroleum Development Company (SPDC) to pay the sum of N45.9 billion to the people of Ogoni in Rivers State within a period of 21 days.

The amount awarded against Shell is to serve as monetary compensation to affected communities for oil spillage. The order was given by Justice Ahmed Mohammed on Wednesday while ruling on the case in the court.

In his submission, the lawyer to SPDC, Aham Ejelamo, informed the court that his client had agreed to make the payment.

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He proposed that the money be paid through the Registrar of the court in a bank about to be opened for the purpose.

But Justice Mohammed ruled against the request and ordered that the payment be made within the period given through the account of the lawyer to the Ogoni people, Mr Lucius Nwosu.

He explained that this was in line with the decision of both the high court and the Supreme Court.

What you should know

Ogoniland is located in the south-east senatorial district of Rivers in the nation’s Niger Delta region and has seen its people and the community become victims of several years of environmental degradation caused by oil spillage.

Their plights caught international attention following a massive public protest campaign against Shell Petroleum Company, led by the Movement for the Survival of the Ogoni People (MOSOP) – a body that is a member of the Unrepresented Nations and Peoples Organisation (UNPO).

The case between the Ogoni people and shell has lasted for about 31 years.

A Lagos Division of the Federal High Court presided by Justice Ibrahim Buba awarded the cost against Shell Petroleum Company in a judgement delivered on June 14, 2010, in a suit brought by representatives of the communities, for the sufferings inflicted on the people of Ogoniland.

After several years of legal tussle, the Supreme Court upheld the judgement of the lower court – but Shell Petroleum Company was not satisfied as it sought for some considerations.

When the matter came up on Wednesday, Justice Mohammed explained that it would amount to burying the judgement of the apex court to rule otherwise.

Tags: Shell Petroleum Development Company (SPDC)
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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