Shell, Niger-Delta Village Agree To $83.5 million Compensation For Huge Oil Spill

15,600 Ogoni farmers and fishermen whose lives were devastated by two large Shell oil spills in 2008 and 2009 will be celebrating on Wednesday as the company’s Nigerian subsidiary announces a  $83.5 million settlement.

British banks will start to transfer 600,000 naira (about £2,100) into each of the local people’s accounts and the community will be given millions to build health clinics and refurbish its schools.

Wednesday's agreement ends a three-year legal battle in Britain over two spills in 2008 that destroyed thousands of hectares (acres) of mangroves and the fish that sustained villagers of Bodo, in southern Nigeria.


London lawyers Leigh Day say it "is thought to be one of the largest payouts to an entire community following environmental damage."

Shell says it always wanted to compensate the people of Bodo fairly. But the company originally offered the entire community just 4,000 pounds ($6,000).

The settlement, split £35m for individuals and £20m for the Bodo community, avoids Shell having to defend a potentially embarrassing London high court case which was due to start shortly. It is thought to be the largest payout to any African community following environmental damage and the first time that compensation for an oil spill has been paid directly to affected individuals rather than to local chiefs.

“It’s several years’ earning. I don’t think I have ever seen a happier bunch of people. The minimum wage in Nigeria is 18,000 naira a month and 70% of the Bodo population live below the poverty line.
Every single one of the 15,600 has said yes to the deal,” said London lawyer Martyn Day whose team of 20 has just returned from the delta after negotiating the settlement and helping to set up thousands of bank accounts for Ogoni people who did not have one.

Shell also agreed to a cleanup.

Community leader Chief Sylvester Kogbara says the money will build health centers, provide clean water and refurbish schools.