Case Study

• • Shell is one of the world's largest oil companies
  • Its headquarters are in the Netherlands, but Shell works in 70 countries around the world
• • Shell has been based in Nigeria since 1937. It started drilling for oil in 1958
  • Ever since then, its operations in the Niger Delta have been controversial
  • The Niger Delta is one of the most difficult places in the world extract oil
  • It is a swampy Marshland
  • Building roads, pipelines and storage tanks here is not easy
  • Shell has invested a lot of money in making this possible
• Shell brings a number of benefits to Nigeria

  • Huge amounts of revenue from oil profits
  • Employment for over 300,000 people
  • 91% of its contracts go to Nigerian companies
• However, Shell has also been responsible for very serious social tension and environmental problems

  • 40 million litres of oil are spilled each year
  • gas and oil flares send toxic gasses into the air
  • pollution from the oil industry has lowered life expectancy in the NIger Delta to 45
  • Shell has built on and polluted land belonging to the Indigenous ljaw group. This has sparked violence, kidnapping and murderers
  • oil theft and sabotage reduce production levels. They cost Shell and the government billions of dollars each year
• Violence in the Niger Delta is a severe problem. It is caused by tension between people who live there and the oil industry. In 2004, the organisation Niger Delta People's volunteer force declared 'all out war' against the government and the industry
• Political

  • Nigeria was part of the British Empire and development was held back until 1960 when Nigeria gained Independence
  • Civil war between 1967 and 1970 further hampered the development.
• Social 


  • multi-ethnic and multi-faith society
  • huge differences in levels of wealth and development
  • GDP is higher in the south due to oil reserves and investments
• Cultural 


  • social diversity has created a rich and varied artistic culture
• Environmental 


  • over 65% of Nigerians are farmers and Nigeria relies on agriculture and farming