Amnesty International has exposed a conflict of interest in the Nigerian government’s handling of the sale of onshore assets of Shell Plc in the country.
The global human rights organization alleged that the government regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), hired Shell’s consultants, Boston Consulting Group (BCG), and S&P Global to review the proposed sale.
In a statement on Wednesday, it argued that BGC and S&P Global may prioritise Shell’s interests rather than conducting a rigorous and impartial review of the sale.
“The decision by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to hire BCG, which already performs a wide variety of other work for Shell, to help assess this sale is concerning.
“It is similarly worrying that S&P Global, which also plays a key role in rating Shell’s debt and creditworthiness as well as providing other services to the oil company, is also involved by the Nigerian government,” the statement read.
Amnesty International noted that S&P Global provides services to Shell, including rating its debt and creditworthiness.
The international organisation expressed concerns that human rights abuses related to Shell’s activities may not be addressed during the review of the sale.
It should be noted that several cases of human rights violations and environmental degradation have been attributed to Shell operations, especially in the Niger Delta region.
The organisation said, “Amnesty International has documented grievous and enduring human rights abuses resulting from oil contamination in the area, where Shell has operated since the 1950s.
“Shell must be held fully to account for the oil spills related to the business it is selling in the Niger Delta region.”
It emphasized the need for an independent and impartial review of the sale. “Given the enormous human rights risks at stake it is essential that reviews of the sale are not just independent,” it stressed.
Backstory
Nairametrics reported the proposed sale of Shell’s onshore oil assets in Nigeria to a local consortium for over $1.3 billion, subject to government approval.
Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, said the company was shutting down onshore operations to focus on deepwater and integrated gas projects in Nigeria.
Experts say the decision, like that of other oil companies who are leaving onshore operations in the country, is due to issues of insecurity and pipeline vandalism in the Niger Delta region.
Various companies including the Renaissance Group, have shown interest in the deal but the NUPRC is yet to approve any sale.
What you should know
- Amnesty International alleged that the NUPRC hired Shell’s consultants, Boston Consulting Group (BCG) and S&P Global to review Shell’s proposed sale of its onshore assets in Nigeria.
- This, according to the human rights organisation, is a case of conflict of interests.
- Amnesty International fears that issues of human rights abuses by Shell Plc may not be addressed in the review of the sale.
- The organization is calling for a truly independent review of the sale, one that is free from the influence of Shell’s consultants and interests.
