Amnesty International Questions Potential Bias In NUPRC’s Review Of Shell’s Asset Sale

Amnesty International has raised serious concerns about the impartiality of Shell’s proposed sale of its onshore assets in Nigeria. This is due to potential conflicts of interest. The Nigerian Upstream Petroleum Regulatory Commission has hired Boston Consulting Group (BCG) and S&P Global to review the $2.4 billion transaction, but Amnesty International notes both firms have existing ties to Shell.

Isa Sanusi, Amnesty International Nigeria Director, stressed the importance of an unbiased review due to the significant human rights risks involved. He pointed out that the involvement of BCG and S&P Global, both of which have worked with Shell, could compromise the review’s independence.

The government regulator must avoid any perceived conflict of interests and ensure the full independence of any consultants used to review Shell’s proposed sale, Sanusi said.

The controversy surrounding Shell’s sale stems from the company’s history of oil spills and environmental damage in the Niger Delta. As earlier reported, Activist Mikaela Loach has criticised Shell for profiting from severe pollution that has drastically impacted the health and livelihood of local communities. Loach highlighted that life expectancy in the Niger Delta is now between 41 and 46 years due to Shell’s fossil fuel production. She also accused Shell of evading accountability by selling off its onshore assets.

Shell announced the sale of its Shell Petroleum Development Company of Nigeria to the Renaissance consortium in January. Amnesty International called for assurances that potential buyers have the ability and financial stability to manage operations safely and effectively and that safeguards are in place to protect local communities from further harm.

Given the enormous human rights risks at stake, it is essential that reviews of the sale are not just independent but seen to be independent, Sanusi warned.

He further emphasised the need for Shell to be held accountable for the environmental damage caused by its operations.

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