Revenue Flow and Human Rights: The Paradoxes of Shell in Nigeria

Abstract

This case describes Shell’s evolution within the context of sensitive human rights issues related to oil exploration and exploitation in Nigeria. Given that much of the revenue from Nigerian oil resources can be siphoned off by corrupt state governors, this case focuses on issues relevant to government transparency and corruption. It describes Shell’s involvement in the Extractive Industries Transparency Initiative (EITI) and its collaboration with the Nigerian Government to instigate a more transparent reporting on oil revenues. However, a decade ago, two senior Shell executives – one Nigerian, and one European – involved in EITI and negotiations with the government retired from the company, and had the prospect of briefing their successors on the complexity of the Nigerian situation. This brought a number of questions that still remained to be answered to the table. The questions concerned the invasive nature of corruption and its effect on human rights, but more specifically the role of a multinational versus the role of the government when trying to deal with such issues. They also concerned the complexity of sustainability issues for corporations – particularly concerning human rights issues – and issues around the scope and limits of corporate responsibility as well as the difficulties that all players face in tough market conditions and on a “non-level playing field”. In a learning context, the case develops new insights on ways of operating responsibly, creating valuable partnerships and interacting in a complex global, socially responsible, context. In an Epilogue, we ask how, in the decade since the retirement of the two executives in question, Shell has evolved in its thinking and acting concerning the Niger Delta and discover that there are still unanswered questions.