Foremost global environmental protection watchdog, Amnesty International (AI), has raised concerns over the ability of Boston Consulting Group (BCG) and S&P Global to help scrutinize the purchase (divestment) of Shell’s onshore assets in Nigeria.
Maintaining that BCG and S&P Global have business ties with Shell, it said the contract as approved by Nigeria’s oil regulatory body, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will not benefit Nigerians because of Shell’s business relationship with the firms.
Director of Amnesty International in Nigeria, Isa Sanusi, in a statement issued on Thursday, July 4, 2024, urged the Nigerian government to avoid any perceived conflict of interests by ensuring and guaranteeing the full independence of any consultant it uses to review Shell’s proposed divestment of its assets in the country.
The group stated: “NUPRC’s decision to hire BCG, which already performs a wide range of other works and projects for Shell to help assess the sale process raises serious concerns. It is similarly worrisome that S&P Global, which also plays a key role in rating Shell’s debts and creditworthiness, as well as providing other services to the oil company, is also involved.
“Given the enormous human rights risks at stake, reviews of the sale mustn’t be just independent–but should be seen to be independent. Shell must be held fully to account for the oil spills related to the business it is selling, which for decades have polluted the environment, contaminated drinking water and poisoned agricultural land, fisheries and people.
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“Any assurances from the consultancy groups that their reviews will be divorced from their wider commercial interests with Shell are unlikely to allay worries that they could soft pedal on the remedies required to address the human rights abuses related to Shell’s activities.
“It is also essential that the potential buyers of the business have the ability and financial stability to manage the operations safely and effectively to ensure that local communities are not exposed to further harm. The deal should not be allowed to proceed unless a series of safeguards that fully protect people’s rights are put in place.”
Amnesty International also appealed to the Federal Government not to approve the takeover by Nigerian firms unless a series of safeguards were in place that fully protect people’s rights.
It would be recalled that in January 2024, Shell announced that it had agreed to sell the Shell Petroleum Development Company of Nigeria (SPDC) to the Renaissance Consortium, which comprises four exploration and production companies based in Nigeria and an international energy group, in a deal worth over $2.4 billion, partly financed with a loan from Shell to the buyers.
