Niger Delta Communities Demand Alleged Unpaid Shell Land Fees

by Ikeoluwa Juliana Ogungbangbe

KEY POINTS


  • Communities demand alleged unpaid land rentals.
  • Senate ordered uniform compensation rates in 2019.
  • Mediation efforts ended without a settlement.

Several oil-bearing communities across six Niger Delta states have renewed demands for alleged outstanding land acquisition fees and rental payments from Renaissance Africa Energy Company Ltd, formerly Shell Petroleum Development Company of Nigeria (SPDC).

The communities, acting through their representatives and legal advisers, said they had been denied payments they believe are due to them under previous land acquisition and rental arrangements.

The affected communities are represented by Parsley Consults Ltd. and Emagu Nigeria Ltd., which claim that some communities received preferential treatment under a compensation system that allegedly left others with accumulated payment shortfalls.

The dispute dates back to a petition submitted in 2017. The communities said the matter eventually led to a Senate resolution in January 2019 calling for the harmonisation of payments and the adoption of uniform rates for affected communities.

According to the communities, the resolution was intended to address differences in compensation and ensure that oil-bearing communities were treated under consistent payment arrangements.

The aggrieved communities also referred to subsequent interventions by federal authorities.

They said directives issued in 2023 by the Attorney General of the Federation and the Ministry of Petroleum Resources advised the oil company to comply with the Senate resolution and resolve the outstanding payment issues.

Despite those interventions, the communities maintain that the alleged arrears have not been fully settled.

They have now renewed their demand for the payment of what they describe as outstanding land rentals and acquisition-related entitlements.

The dispute has also gone through several mediation attempts involving government and security authorities.

The communities’ representatives said tripartite mediation efforts held in 2025 and 2026 failed to produce an agreement.

One of the meetings was held at the Operation Delta Safe mediation room at the Joint Task Force headquarters in Igbogene, Yenagoa, Bayelsa State.

The meeting reportedly ended in a stalemate, leaving the communities dissatisfied with the progress made towards resolving the dispute.

In a letter dated September 24 and addressed to the Managing Director of Renaissance Africa Energy, the communities’ legal counsel, Chibuzor Obiajunwa, expressed concern over the continued non-payment of the alleged outstanding entitlements.

The legal representatives warned that prolonged failure to resolve the matter could create renewed tensions in the Niger Delta.

The communities are now seeking a swift settlement, arguing that resolving the dispute would help protect community welfare and reduce the risk of disruptions to oil production infrastructure in the region.

The latest demand comes as Renaissance Africa Energy continues operations following its emergence from the divestment of Shell’s onshore Nigerian business.

The communities, through House of Law Attorneys, said they expected the company and relevant government authorities to address their outstanding claims and bring the prolonged dispute to an end.

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