The Federal High Court in Lagos has set May 26, 2025, as the date to hear a lawsuit challenging Shell Petroleum Development Company Limited’s transfer of its mining licence to the Nigerian consortium, Renaissance African Energy Company Limited.
The case, designated FHC/L/CS/651/25, is being heard by Justice A.L. Allagoa. The plaintiff, the Incorporated Trustees of HEDA Resource Centre, has filed the suit, claiming that the deal violates various Nigerian laws, including the Petroleum Industry Act of 2021.
At the heart of the plaintiff’s argument is the concern that Shell, having been responsible for extensive oil pollution in the Niger Delta, is using the licence transfer to evade its environmental liabilities. HEDA, a human rights and anti-corruption organisation, asserts that Shell’s deal with Renaissance is a strategic move to shirk responsibility for the environmental damage it has caused over decades.
In January 2025, Renaissance Africa Energy Holdings announced the completion of a $2.4 billion deal with Shell, which involved the acquisition of Shell’s entire equity in Shell Petroleum Development Company. As a result, SPDC has been rebranded as Renaissance Africa Energy Company Limited, marking the firm’s exit from onshore oil operations in Nigeria.
HEDA, however, argues that Renaissance, established only in 2022, is both financially and technically unqualified to take over Shell’s operations, particularly given the legal and environmental challenges surrounding SPDC’s activities. According to the plaintiff’s legal team, led by Senior Advocate of Nigeria Kunle Adegoke, the deal raises concerns about potential conflicts of interest and improper approval processes by Nigerian authorities.
The lawsuit further points out that SPDC is accountable for 35% of oil spills in the country, amounting to an estimated $4.2 billion in cleanup and remediation costs. HEDA claims that Shell has failed to fulfil its legal obligations in addressing the environmental impact of its operations, and it fears that the deal will allow the company to avoid the financial and legal responsibilities it owes to the Nigerian public.
The defendants in the case include SPDC, Renaissance, the Federal Republic of Nigeria, the Nigerian National Petroleum Corporation (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Ministry of Petroleum Resources. HEDA is calling on the court to intervene and halt the deal, citing the lack of transparency and the potential negative consequences for Nigeria’s oil and gas sector.
The court case has sparked widespread concern among environmental advocates and legal experts, who argue that the outcome could set a significant precedent for the future of the Nigerian oil industry, especially with regard to corporate responsibility and environmental protection.
