Social media posts misleadingly claim Shell is making total exit from Nigeria

“Shell just announced they leaving Nigeria. What is this white people seeing that we are not seeing yet? (sic)” reads a post shared on X on January 16, 2024. 

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A screenshot of the misleading claim, taken on June 18, 2023

Reposted more than 1,000 times, it was penned by an account with a history of publishing content critical of the ruling All Progressives Congress and the Nigerian government. 

Another account claimed that the oil giant was leaving the country because it could not compete with Nigerian-owned Dangote Refinery, which began oil production at the beginning of the year (archived here) to help end the country’s reliance on fuel imports.

Economic hardships, insecurity and rising production costs have forced several companies out of Nigeria in recent years. 

In December, consumer goods firm Procter & Gamble announced plans to discontinue manufacturing in Africa’s most populous country, noting that “it’s very difficult for us as a US dollar-denominated company to create value” (archived here). British pharmaceutical giant GlaxoSmithKline also exited Nigeria last year archived here). 

But the claim that Shell has shuttered all operations in Nigeria is misleading.

Sale of onshore subsidiary

Shell announced on January 16, 2024, that it was selling one of its Nigerian onshore subsidiaries, The Shell Petroleum Development Company (SPDC) of Nigeria Limited, to a consortium of local and international companies (archived here). 

Completion of the sale was dependent on the approval of the Nigerian government and “other conditions”, it said in the statement. 

But while SPDC is Shell’s largest subsidiary in Nigeria (archived here), this does not mean it will be fully leaving Nigeria.  

“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our deepwater and integrated gas positions,” Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said in the January 16 statement.

Shell’s deepwater position in Nigeria refers to its subsidiary with offshore operations, while its integrated gas holdings has both onshore and offshore components.

Three subsidiaries that run these operations for the company were not part of the sale, Shell said. 

These include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Shell Nigeria Gas Limited (SNG), and Daystar Power Group. 

SNEPCo operates the Bonga oil field in the Gulf of Guinea (archived here) from where it explores for oil and gas, while SNG distributes gas for commercial use (archived here). Daystar, which Shell acquired in 2022, provides solar power  (archived here). 

Oil companies’ exits

Over the past few years, several international oil firms have offloaded subsidiaries or left Nigeria completely. 

ExxonMobil announced in 2022 that it was selling its shallow-water assets to a Nigerian company because it found operations in Nigeria “challenging” (archived here).

Italian oil firm Eni made a similar move, selling one of its Nigerian subsidiaries last September (archived here). It still operates at least two businesses in the country. 

Norway's energy giant Equinor sold its subsidiary to Nigerian firm Chappal Energies last November (archived here), exiting the Nigerian market.