Brief background
Shell was exploiting the natural reserves of oil and gas from the Nigerian Coastal plains dwelled by an ethnic group of Ogoni. Shell’s Nigerian operation constituted 11-12% of its output and 200 million dollar’s sale of annually. On contrary, Nigeria plummeted economically even 3 decades after independence partly because of political failure that neither could not leverage its competencies and nor reduce its oil dependency. Immature political system ultimately led to Military coup d'état ensuing a totalitarian rule reigning Nigeria brutally and undemocratically. Nigerian state affairs were in shambles. When 110 million Nigerians were victims of the ruthless military regime, ½-million Ogani’s were no exception.
Identification of the Key issues
1. Acts of Shell- failure in performing its social responsibilities and insensitive to Human rights and environmental concerns in the location of its operation
2. Failures on part of Political Economy of Nigeria
3. Hypocrisy of Developed World like US and EU
Analysis of issues
• Acts of Shell
Shell was extravagantly extracting the oil and gas from Ogoni for years. Government had always neglected them and so had Shell, thereby leading to a massive protest targeted at both the parties. They were earning a lot by exploiting the islands but giving almost nothing in returns. Their lands were environmentally degraded; soil and ground water rampantly contaminated mostly pertaining to oil leakage emanating from poorly maintained and dilapidated pipelines. Shell reciprocated this agitation by not clearing its spillages; but rather restricting itself from the region and making allegations of sabotage.
Repeatedl ...