A Federal High Court in Yenagoa has dismissed a lawsuit filed by the traditional ruler of Ekpetiama Kingdom, King Bubaraiye Dakolo, challenging Shell’s divestment from its onshore oil assets and seeking remediation for decades of environmental pollution in his community.
Justice Ayo Emmanuel, who delivered the ruling on Friday, held that the action was incompetent because it was filed outside the period permitted by law and failed to satisfy mandatory legal requirements under the Petroleum Industry Act (PIA), 2021.
The suit, marked FHC/YNG/CS/81/2025, questioned the legality of Shell’s divestment process, with the plaintiff alleging that the transaction did not comply with procedures stipulated in the PIA.
Dakolo also sought judicial intervention over what he described as more than 40 years of cumulative environmental degradation affecting Ekpetiama Kingdom in Bayelsa State.
In his judgment, Justice Emmanuel ruled that objections to a divestment under the Petroleum Industry Act must be brought within three months, adding that the plaintiff failed to institute the action within the statutory timeframe.
The court further held that the monarch lacked the legal standing (locus standi) to challenge the divestment, noting that he was not directly involved in the transaction.
Justice Emmanuel also faulted the plaintiff for failing to first utilise the dispute resolution mechanisms provided by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) before approaching the court.
According to the judge, compliance with those statutory procedures is a prerequisite for instituting legal action.
“The plaintiff’s failure to satisfy the mandatory statutory conditions precedent under the Petroleum Industry Act strips this court of jurisdiction,” the judge held.
The court also rejected the argument that the alleged environmental damage constituted a continuing injury capable of extending the limitation period.
Justice Emmanuel explained that while the effects of environmental pollution may persist, the law distinguishes between the continuous consequences of an earlier act and the recurrence of a fresh wrongful act.
He noted that the allegations against the public officials named in the suit related to events that occurred outside the statutory period allowed under the Public Officers Protection Act (POPA).
The judge further ruled that claims relating to alleged tortious liability were equally caught by the five-year limitation period provided under the Bayelsa State Limitation Law.
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Reacting to the judgment, counsel representing the Minister of Petroleum Resources, Lawrence Edet, welcomed the decision, describing it as a just outcome.
On his part, Dakolo’s lawyer expressed dissatisfaction with the ruling and disclosed that the legal team would challenge the decision at the Court of Appeal.
Environmental advocacy organisation Social Action also criticised the judgment, arguing that procedural technicalities had overshadowed the substantive issues relating to environmental justice.
Speaking after the ruling, the group’s Resource Justice Manager, Dr Prince Edegbuo, described the decision as disappointing, saying communities affected by decades of pollution deserved judicial protection.
According to him, oil pollution has severely damaged the environment, destroyed livelihoods and affected the health and wellbeing of residents of Ekpetiama Kingdom.
He insisted that the legal battle was far from over, pledging continued support for the community as the matter proceeds to the appellate court.
Ekpetiama Kingdom is among the host communities to the Gbarain-Ubie Gas Plant and the Gbarain oilfields in Bayelsa State.
The defendants in the suit include Shell Petroleum Development Company of Nigeria (SPDC), Shell Petroleum N.V., Shell UK PLC, the Attorney-General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Minister of Petroleum Resources, and Renaissance Energy Africa Limited.
Shell’s onshore and shallow-water assets were acquired in March 2025 by Renaissance Energy Africa, a consortium of indigenous energy companies, following the multinational’s decision to divest from its Nigerian onshore operations.
