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Environmental and human rights activists have called on the Nigerian government to hold off on approving plans by London-based oil giant Shell to sell its operations in the Niger Delta unless the oil giant does more to tackle pollution in the region caused by the industry.

Foreign energy companies have mined hydrocarbons in the Niger Delta for decades, with Shell by far the largest investor. It earns these companies and the Nigerian government billions of dollars. However, locals have long complained of severe environmental damage.

“You can’t grow crops. You can’t drink water. You can’t fish because the fish are dying or they’re already dead,” said Florence Director for Nigeria, the Stakeholder Democracy Network, a civil society organization based in Port Harcourt, the Niger Delta. Kayemba said.

Shell announced in January that it would exit onshore and shallow water operations in the region. It intends to sell its Nigerian subsidiary Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium consisting mainly of five local companies. The sale will include existing mining licenses and infrastructure. Shell says this is part of a plan to transition away from fossil fuels.

Civil society groups say Shell must do more to clean up the environment before leaving. A recent report from the Dutch Center for the Study of Multinational Corporations (SOMO) warned that the divestment plan was a “ticking time bomb”.

“Communities fear that once Shell withdraws, they will never see their environment restored or be compensated for the loss of their livelihoods,” the SOMO report said. “Most people in the delta make their living from agriculture and fishing, and when soil and waterways are damaged, These careers are impossible when there is severe pollution.”

Florence Kayemba of the Stakeholder Democracy Network, a contributor to the SOMO report, told VOA the Nigerian government must scrutinize the sale more carefully.

“We are very concerned about the legacy of pollution left by Shell – not just Shell but other oil companies that have divested assets from the Niger Delta,” she said.

“We think it’s important that the federal government investigates these issues because oil won’t flow forever,” Kayemba added. “You’re going to have a post-oil Nigeria. You’re going to have a post-oil Niger Delta. We need a fully functional environment.”

Oil companies such as Shell often blame oil spills on theft and vandalism, but environmental groups have disputed that assertion. Kayemba said locals also seek to make money through unlicensed, small-scale production known as “artisanal refining.”

“What’s happening is that artisanal refining is just exacerbating what’s going on,” she said. “Yet this contamination is already there. So when you try to solve this problem, it becomes very difficult. Who is to blame?”

A report commissioned in May 2023 by Bayelsa state, one of the main oil-producing regions of the Niger Delta, estimated that cleaning up the state’s decades-old oil spill would cost about $12 billion over 12 years. It blamed Shell and Italian oil company Eni for most of the losses.

Both Shell and Eni disputed the findings.

SOMO reports that Shell is currently selling its operations to domestic companies that may not be equipped to deal with aging infrastructure and the legacy of oil exploration.

“Shell is selling its oil blocks and infrastructure as going concerns to companies that in some cases appear to lack the funds and inclination to deal with old and damaged infrastructure and, if necessary, responsibly Closure and decommissioning,” the report said.

It added: “Shell’s withdrawal exposes Niger Delta communities to significant ongoing risks to the environment, health and human rights, long after the oil industry has ceased, and potentially for generations to come.”

In a statement to VOA, Shell said: “The divestment of international energy companies onshore is part of a broader restructuring of Nigeria’s oil and gas industry, with domestic companies playing a role in helping the country after decades of capacity building. an increasingly important role in delivering on its expectations for the industry.”

“As divestments occur, mandatory submissions to the federal government allow regulators to review a wide range of issues and recommend approval of these divestments provided they meet all requirements,” the statement said.

Shell added that it would continue to deploy its “technical expertise” under the terms of the sale to the new buyer.

The Nigerian government has signaled its intention to approve Shell’s divestment plan. Nigeria’s oil minister, Heineken Lokpobiri, told the World Economic Forum in Davos that the government was committed to “fostering a business-friendly environment” in the industry.

According to Reuters, Lokpopiri said in Davos on January 18: “As far as the government is concerned, once the necessary documents are obtained, we will not waste time in giving the necessary considerations and consents.”

Nigeria’s Ministry of Petroleum Resources did not respond to VOA’s request for comment.