By
Peterside Rejoice Eneky
The Federal High Court in Lagos has scheduled May 26, 2025, to hear a lawsuit filed to stop Shell Petroleum Development Company Limited (SPDC) from transferring its mining licence to Renaissance African Energy Company Limited.
The suit, marked FHC/L/CS/651/25 and assigned to Justice A.L. Allagoa, was filed by the Incorporated Trustees of HEDA Resource Centre. The group argues that the licence transfer violates key provisions of the Petroleum Industry Act 2021 and other Nigerian laws.
HEDA alleges that Shell is using the transaction to avoid liability for decades of environmental pollution in the Niger Delta. In January, Renaissance announced the completion of a $2.4 billion deal to acquire SPDC’s full equity, signaling Shell’s move to offshore operations and a rebrand to Renaissance Africa Energy Company Limited.
According to HEDA, the 2nd defendant, Renaissance, incorporated in 2022, lacks the expertise and financial strength to operate in the upstream oil and gas sector. The group also claims that relevant authorities compromised the approval process.
SPDC and Renaissance are named as 1st and 2nd defendants respectively. Also joined in the suit are the Federal Republic of Nigeria, the Attorney General of the Federation, the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission, and the Ministry of Petroleum Resources.
The plaintiff, represented by Senior Advocate of Nigeria Kunle Adegoke, seeks an order reversing the transfer of SPDC’s oil exploration licence. HEDA accuses Shell of being responsible for 35% of Nigeria’s oil spills, estimating its environmental liability at over $4.2 billion.
They further allege that Shell has failed to provide adequate cleanup, has not conducted annual environmental liability assessments, and has not increased its financial contributions as mandated by law.
HEDA urged the court to intervene, warning that the licence transfer sets a dangerous precedent in the oil and gas industry and undermines the national interest. It also referenced several pending lawsuits against Shell in Nigeria and the UK, including a class action involving 15,000 victims of oil spills.
The outcome of the hearing is expected to have significant implications for environmental accountability and corporate responsibility in Nigeria’s oil sector.
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