Oil clean-up ‘scam’ warnings were ignored by Shell, according to a BBC investigation. The energy giant allegedly disregarded repeated alerts that a contentious cleanup effort of oil-polluted areas in southern Nigeria was beset by corruption and poor management.

The Nigerian government organized the cleanup, which began in Ogoniland about eight years ago and was paid for with $1 billion (£805 million) from several oil companies, including Shell. However, new evidence uncovered by the BBC suggests that both Shell and the Nigerian government were repeatedly warned of serious issues with the cleanup project over the years but failed to take effective action.

According to one observer, the cleanup effort was a “scam” and a “con” that squandered funds while leaving the residents of Ogoniland to endure the terrible effects of oil pollution. Not much has changed thirteen years after a groundbreaking United Nations study brought attention to the dire circumstances. Many affected communities report that little to no progress has been made in restoring their environment or improving their living conditions.

Internal documents obtained by the BBC reveal that Shell and Nigerian government representatives were frequently alerted to suspected fraud within the cleanup organization, the Hydrocarbon Pollution Remediation Project (Hyprep). The documents indicate a consistent pattern of negligence and mismanagement that has undermined the cleanup effort.

The allegations include contracts awarded to unqualified firms, falsified test reports that falsely labeled contaminated water and soil as clean, exaggerated project costs, and blocking external auditors from accessing cleanup sites. In 2022, the United Nations sent a letter to Nigeria’s environment minister warning that the cleanup would continue to suffer from “extremely poor standards” unless urgent reforms were implemented.

Despite the enormous financial resources allocated to the project, the lack of accountability and transparency has left Ogoniland’s residents struggling with the devastating consequences of oil pollution. Critics have called for international oversight and stronger measures to ensure that funds are used effectively and that the cleanup achieves meaningful results.

Impact on Local Communities

Shell allegedly ignored warnings about corruption and mismanagement in the oil clean-up efforts in Ogoniland, leaving local communities suffering from persistent pollution, severe health crises, and worsening economic hardships. Shell has denied any wrongdoing, attributing the oil leaks to theft, sabotage, and illegal refining activities. However, allegations persist that the company disregarded repeated alerts about systemic corruption and inefficiencies within the cleanup operations.

Since 1958, the Niger Delta has seen at least 13 million barrels (1.5 million tonnes) of crude oil leaked, according to UN figures. Because of the tainted drinking water, some locals, like Paulina Agbekpekpe, have suffered greatly, losing family members and dealing with health problems.

“Most of the children – from the drinking water – have got diseases. Many have died. I’ve lost eight kids. My husband is sick.” Paulina said.

According to a 2011 UN Environment Programme (UNEP) report, benzene levels in the drinking water of some Ogoniland villages were more than 900 times higher than the WHO-recommended threshold. Throughout the region, the same chemical was found in air samples.

BBC inspections of the impacted areas revealed that crude oil was still present in the soil and streams, despite Shell’s statements that cleanup efforts were progressing. Oil contamination has caused crop failure for farmers like Patience Ogboe, exacerbating their financial difficulties.

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Legal Battle and Shell’s Exit Strategy

Attorneys for two Ogoniland towns, totaling over 50,000 residents, are contending that Shell should be held accountable for pollution from 1989 to 2020 in a civil trial that is presently taking place at the London High Court. The villages allege that spills have endangered their livelihoods, ruined their ecosystem, and left them without access to clean water.

Shell has stated that it will defend itself in court as it moves to sell its Nigerian assets to concentrate on onshore gas and offshore drilling. The business maintains that oil theft and sabotage are to blame for spills, denying responsibility for the pollution.

Meanwhile, locals, worry that Shell’s departure will enable the company to evade responsibility while carrying on making money from the area through the sale of crude oil. The impacted communities’ UK-based legal firm, Leigh Day, has voiced worries about the lack of transparency around the future cleanup activities to be carried out by Renaissance Africa, the company that will take over Shell’s operations.

90% of Nigeria’s exports are oil, primarily from the Niger Delta, and local populations continue to suffer without assistance due to the struggle between commercial interests and environmental protection.

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