Shell, Nigeria and the Ogoni. A study in unsustainable development: I. The story of Shell, Nigeria and the Ogoni people – environment, economy, relationships: conflict and prospects for resolution1

Abstract

AbstractThe Shell Petroleum Development Company (SPDC) and its joint‐venture partners – particularly the Nigerian National Petroleum Corporation – have earned billions of dollars from the oil extracted from the land of the Ogoni in the Niger Delta. The Ogoni however complain that they have not seen adequate benefits; rather the oil has cost them dearly in terms of a deteriorating environment and underdevelopment and mobilized a successful national and international campaign against the Nigerian government and Shell. Despite the avowed non‐violent nature of the campaign, military repression resulted in thousands of Ogoni killed, raped, beaten, detained and exiled and the main leaders executed. Under pressure from the Ogoni, Shell was forced to pull out from Ogoniland in 1993. Since then, Shell International has re‐invented its corporate strategy in line with principles of sustainable development and it has committed itself to a level of stakeholder engagement on its environmental and social performance which would have been unthinkable in 1995. So for Shell, a return to Ogoni would be a powerful symbol that their corporate commitment to being a socially responsible company is being translated into action on the ground. However, there is still little trust between the company and the Ogoni people and their representative organization, the Movement for the Survival of the Ogoni People (MOSOP). Many of the issues raised by the Ogoni (such as the need for locally sustainable development, distribution of oil wealth, community projects and environmental issues) have yet to be addressed. This paper is the first of a trilogy examining the issues, relationships, management and strategic implications of the case. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment