Opinion
Another Indictment Of Shell
In the words of Mark Twain, an American poet and philosopher; “Of all the animals, man is the only one that is cruel”.
Twain concluded thus: “Man is the only one that inflicts pain for the pleasure of doing it”.
This quote is apt when viewed against the activities of International Oil Companies (IOCs) operating, not only in Rivers State, but in the Niger Delta Region.
Only recently, the Rivers State Governor, Chief Nyesom Wike, received two foreign envoys on courtesy calls on him in Government House, Port Harcourt.
Receiving the Ambassador of France to Nigeria, Mr Jerome Pasquier, Governor Wike expressed dissatisfaction with the empowerment of cultists by IOCs through the provision of surveillance jobs.
The governor disclosed that his administration has decided to review all surveillance jobs given to youths by multinational corporations in the state as part of efforts to unveil those youths behind them.
The concern of the government is that such award of surveillance jobs constitutes empowerment of affected cultists who become so rich to buy sophisticated guns to perpetuate violence in society.
The state chief executive did not mince words when he berated the Federal Government for politicizing security issues, noting that politicizing security by the government at the centre was partly responsible for insecurity in the state.
As if that was not enough, Governor Wike, in a minute, summarized the history of oil exploration, exploitation and nefarious activities of oil multinations when he condemned The Shell Petroleum Development Company (SPDC’s) poor community relations with host communities.
Governor Wike told the Netherlands Ambassador to Nigeria, Mrs Marion Kappenye Van De-coppello, on courtesy visit, the negative role of SPDC in the state which is in the habit of not carrying out its corporate social responsibilities to host communities.
He was quoted as saying; “I sat in a meeting with Shell, Agip and Total. It was only Shell that refused to implement Memorandum of Understanding”.
Wike ended thus; “Despite the activities of Shell, we shall continue to protect national assets”.
This is the challenge host communities have had with SPDC over the years.
Interestingly, the negative activities of IOCs to their host communities in Rivers State, Niger Delta and, indeed, the world is not new.
Severally, host communities globally have cried out and, in some cases, suffered betrayal by their own leaders.
It is on record that the IOCs, including Shell Companies, had in the past employed different antics to deliberately create crises, political upheaval and cause community violence to have access to crude oil to the detriment of their host communities.
It is on record that about four years ago, an international television station based in Doha, Qatar, Al-Jazeera, broadcast a four-part documentary series known as the Secret of Seven Sisters. It was a television series revealing the story of a cartel of seven foremost oil companies formed to control the world’s oil. Al-Jazeera listed the seven sisters as Exxon, Mobil, Chevron, Gulf, Texaco, BP and Shell.
Governor Wike’s recent remarks on foreign oil firms empowering cultists with surveillance jobs and Shell not implementing MoU no doubt is another indictment of a Sister among the Seven.
It would be recalled that in history, the Seven Sisters, in a bid to gain access to oilfields, had the penchant to manipulate host communities by causing war during which oil and gas would be transported out to world market, maintain price stability, while host communities languished in abject poverty and penury.
In fact, in the bid to dominate Africa, the Seven Sisters installed a king in Libya, a dictator in Gabon and fought the nationalization of oil resources in Algeria.
Reacting to Governor Wike’s observation to the activities of SPDC and other oil companies, a renowned historian, Professor Emeritus E. J. Alagoa, said Governor Wike was right and likened the behaviour of Shell to the conduct of Royal Niger Company in Nembe Kingdom.
According to Alagoa, the British, French, German and Spanish came to Africa to promote their own business, to tap whatever they could get out of the Black Continent as to develop Europe which they successfully did.
“I can say that Shell has perfected their strategy; they are more efficient than the Royal Niger Company ever did”.
Better still, the people of Kula have corroborated the view of Governor Wike. In fact, the Chairman of Kula Supreme Council of Traditional Rulers, Dr Kruma Amabepi-Eleki, said in a statement that it is a fact that Shell has a history of promoting insecurity, disunity and disharmony among its host communities.
He went further to observe that “Governor Wike has vindicated their position against Shell’s operation of OML 25 Flow Station in the Kula territory for almost four decades with nothing to show for its presence in the area”.
It is, therefore, common knowledge that from Kutei Borneo Basin in the Far East, to Kuwait-Iran in Middle East down to Umuechem in Etche LGA, Ogoni land and Kula community, Shell has not changed.
There is the need for a concerted effort by Rivers people and, indeed, the Niger Delta, to articulate the way out of this quagmire.
Today, even though some of the Seven Sisters have merged to pave the way for new cartel for greater atrocity, the blue print mid-wifed by their founding fathers such as Henry Deterding, co-founder of Royal Dutch, American Walter Teagle of Standard Oil Company and English man, Sir John Cadman, is still in force.
This is where it is necessary to also appeal to political leaders in positions of trust not to use youths for political campaigns and, in turn, dump them after winning election.
This is because politicians have been accused of empowering cult gangs during electioneering process after which they abandon them with guns to cause insecurity in society.
The time to act is now.
Sika is a public affairs analyst.
Baridorn Sika
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
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