The Federal High Court in Lagos has scheduled May 26, 2025, to hear a suit aimed at halting Shell Petroleum Development Company Limited (SPDC)’s controversial transfer of its oil mining licence to Nigerian consortium, Renaissance Africa Energy Company Limited.
The case, filed by the Incorporated Trustees of HEDA Resource Centre, has been assigned to Justice A.L. Allagoa and registered under suit number FHC/L/CS/651/25.
HEDA, a prominent human rights and environmental advocacy group, is challenging the legality of the $2.4 billion deal, claiming it violates provisions of Nigerian law, including the Petroleum Industry Act (PIA) 2021. The group alleges that Shell’s divestment strategy is a calculated move to sidestep accountability for decades of environmental damage linked to its operations in the Niger Delta.
In January, Renaissance Africa Energy Holdings announced the completion of its acquisition of SPDC’s full equity. As part of the transaction, SPDC would be renamed Renaissance Africa Energy Company Limited, marking a strategic pivot by Shell towards offshore operations and away from its onshore assets.
HEDA, however, argues that SPDC responsible, according to the group, for 35% of all oil spills in Nigeria must not be allowed to transfer its liabilities along with its licence. The group claims Shell owes up to $4.2 billion in environmental repair costs and has consistently failed to meet regulatory obligations concerning environmental remediation and community welfare.
In its court filing, HEDA seeks an order to reverse or nullify the divestment, alleging that Renaissance, incorporated in 2022, lacks the technical experience and financial capacity to manage upstream oil operations. The plaintiff further accuses the Nigerian government and its agencies of failing to conduct proper oversight, thereby enabling the transaction in violation of due process and national interest.
The suit names Shell as the first defendant and Renaissance as the second defendant, while also including as co-defendants the Federal Republic of Nigeria, the Attorney General of the Federation, the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Ministry of Petroleum Resources.
HEDA’s lead counsel, Kunle Adegoke, SAN, told the court that SPDC has ongoing legal liabilities both in Nigeria and abroad, including a major class-action suit involving over 15,000 Niger Delta residents. The group contends that allowing the transfer would set a dangerous precedent in Nigeria’s oil and gas sector, effectively granting multinational corporations an exit route from environmental justice.
“It is imperative for the court to act swiftly and decisively,” the plaintiff argued. “This is not just a matter of law it is about safeguarding the rights of communities that have borne the brunt of pollution, neglect, and corporate impunity for decades.”
HEDA further accused Shell of failing to transparently disclose whether it has annually assessed and updated its environmental liabilities, as required by the PIA, before seeking to offload its assets and obligations.
The court is expected to decide whether Shell can lawfully transfer its interests to Renaissance without first addressing its alleged environmental debts, and whether the Nigerian government acted properly in approving the transaction.
As the date for hearing approaches, the case promises to test both the strength of Nigeria’s environmental laws and the government’s willingness to hold major oil corporations accountable.
