The Federal High Court in Yenagoa has dismissed a suit challenging the divestment of Shell Petroleum Development Company Nigeria Ltd from its onshore assets. Justice Ayo Emmanuel delivered the ruling on Friday, striking out the case on multiple grounds, including that it was filed outside the statutory time limit.
Background of the Case
The suit was filed by Bubaraiye Dakolo, the traditional ruler of Ekpetiama in Yenagoa Local Government Area of Bayelsa State. Mr Dakolo sought redress and remediation for cumulative pollution in the local government area spanning 40 years. He alleged that Shell's divestment did not comply with the stipulated guidelines under the Petroleum Industry Act (PIA) 2021.
Court's Ruling
Justice Ayo Emmanuel dismissed the case for being filed out of time, holding that under the statute, any objections to divestment must be filed within three months. The judge also ruled that the traditional ruler lacked 'locus standi' to institute the case, as he had no role in the divestment process.
The court further stated that Mr Dakolo failed to explore and exhaust the conflict resolution mechanisms provided by the Nigerian Upstream Petroleum Regulatory Commission. According to the judge, this failure, as per the PIA, rendered the suit invalid.
In his ruling, Justice Emmanuel noted: "Plaintiff's failure to satisfy the mandatory statutory conditions precedent under the Petroleum Industry Act (PIA) strips this Court of jurisdiction." He also addressed the plaintiff's argument that the injuries constituted a "continuing injury," saying: "A continuous injury means a recurrence of the legally wrongful act itself, not the continuous persistence of the injurious effects of a singular past act."
The judge added that claims against public officers arose outside the mandated three-month period, and tortious claims were caught by the five-year limitation threshold under Section 16 of the Limitation Law of Bayelsa State.
Reactions to the Ruling
After the ruling, Lawrence Edet, counsel to the Minister of Petroleum Resources, thanked the court for dispensing justice in his client's favour. Meanwhile, counsel to Mr Dakolo stated that his client will pursue the case at the Court of Appeal.
An environmental group, the Resource Justice and Social Action, expressed regret over the ruling. Prince Edegbuo, resource justice manager of the group, said: "It is very unfortunate. The pollution has devastated the environment and denied people of their livelihoods and even affected the reproductive health of the people, it is heartbreaking that the Federal High Court struck out this case." He added: "We will meet at the Appeal Court. We will not relent. We will continue to support the Ekpetiama people in this litigation, this is just the court of first instance."
Defendants in the Suit
Listed as defendants in the suit were Shell Petroleum Development Company of Nigeria, Shell Petroleum N.V., Shell UK PLC, the Attorney-General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission, the Minister of Petroleum Resources, and Renaissance Energy Africa Ltd.
Renaissance Energy Africa, a consortium of indigenous oil firms, acquired in March 2025 the onshore and shallow-water oil and gas assets previously operated by Shell Petroleum Development Company of Nigeria, following the divestments by Shell UK PLC, the parent company of SPDC.
