News
Shell Hires Standard Chartered for Sale of SPDC, Major Divestment in Nigeria
Royal Dutch Shell has launched a major divestment of its Nigerian assets, several sources familiar with the matter said.
Shell has hired Standard Chartered to sell its Shell Petroleum Development Company of Nigeria Limited (SPDC) subsidiary, two of the sources said.
SPDC operates the company’s shallow-water and onshore asset interests via its 30% interest in the SPDC joint venture, which supplies around 10% of Nigeria’s gas demand.
Sale documents were issued earlier this week and expressions of interest (EOIs) are due by 10 September, the other source said.
The vendor is asking for non-binding offers in the subsequent second phase, this source said.
Shell is selling the business because it no longer views its activities in the Niger Delta as core to its ongoing strategy, which is driven by the ESG pressure from its investors, both sources said, and as intimated by its CEO earlier this year.
Also, several of the oil mining leases (OMLs) have upcoming development costs, which Shell does not intend to fund, one of the sources added.
It will still retain its deepwater assets in the country, this source added.
The business will be worth several billions of dollars, this source said. Shell will want full-value offers for the business but is strategically driven in this disposal and will likely prefer low execution risk to waiting for a knockout offer, this source said.
It is very likely too large for any single acquiror, this and a third source, and a banker following the deal said.
The valuation will ultimately be derived from different views on the separate assets — the shallow-water fields, the onshore fields and the infrastructure, for which there could be separate buyers, one of the sources said.
Alternatively, Shell may sell portions of equity in the whole of SPDC to different consortia of buyers, this source said.
Either way, buyers will need to have a local Nigerian element, this and another of the sources said.
The assets in the Niger Delta region are plagued with security issues and would, in particular, need a very local participant and lender, one of the sources said.
Private equity would struggle with this associated risk and with the expected necessary investment in the portfolio, this source said.
Public-listed companies would struggle to raise equity to execute the deal, given the ESG-derived sentiment for oil and gas in the public markets, this source said. Local sponsors may be interested, but this would constitute a very transformational deal, and would need significant lender support, this source said.
An international, private group with operating expertise, for example Perenco, or a Chinese player might make most sense, this source said.
Shell and Standard Chartered declined to comment.
The SPDC JV is co-owned with Eni [BIT:ENI] via its NOAC subsidiary with 5%, TotalEnergies [EPA:FP] via its Total E&P Nigeria subsidiary with 10%, and Nigeria’s national oil company NNPC with the remaining 55%.
The joint venture owns 360 producing oil wells, 60 producing gas well, and a network of 4,000 kilometres of oil and gas pipelines and flowlines, Shell’s website notes.
On 15 January this year, SPDC completed the sale of its 30% interest in OML 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Ltd, a related company of Heirs Holdings Ltd and Transnational Corporation of Nigeria Plc, for a consideration of USD 533m.
In 2020, output from the SPDC JV, together with Shell’s SNEPCo subsidiary, fell from the record highs of 2019 but, at around 620kbpd of oil equivalent remained close to the five-year average of 625,000.
Nigeria is becoming an increasingly difficult jurisdiction in which to operate, a sector advisor following the sale said. Poor engagement by the government with international energy majors is driving many away, and this is further exacerbated by recent legislation such as the Nigerian Petroleum Bill, this advisor noted.
Shell first announced its plans to sell down its Nigerian onshore interests during its annual general meeting in May. “We have been reviewing positions that continue to be challenged from an environmental perspective … and a particular point of attention has been onshore oil in Nigeria,” its CEO Ben van Buerden said.
“Over the last 10 years we have reduced the total number of licences in onshore Nigeria by half. But unfortunately, our remaining onshore oil operations continue to be subject to sabotage and theft … This means that the balance of risk and reward associated with our onshore oil portfolio in Nigeria is no longer compatible with our strategic ambitions. Because of this, we have started discussions with the Nigerian government to align on a way to move forward.”
“We’ve drawn that conclusion, and we’re now talking to the Nigerian government on the way forward.”
The Senate on Tuesday deplored what it described as violations of the principles of federal character in the appointments, recruitments and promotions in some key federal institutions and agencies.
Specifically, the upper legislative chamber fingered the Nigerian National Petroleum Company Limited (NNPCL), Pension Commission (PENCOM), the Nigeria Deposit Insurance Corporation (NDIC) and several other Ministries, Departments and Agencies (MDAs) as culprits.
The matter was a subject of debate at plenary as Senator Osita Ngwu called the Senate’s attention to the alleged violations through a motion.
Ngwu’s motion, entitled “Urgent Need to Address Systemic Abuse and Ineffective Implementation of the Federal Character Principle in Nigeria’s Public Sector,” got the attention of the lawmakers.
Ngwu, who led the debate, cited Sections 14(3) and 14(4) of the 1999 Constitution, which explicitly prohibit the dominance of individuals from a few states or ethnic groups in federal institutions.
He observed that while recruitment opportunities are limited, promotions are often based solely on years of service rather than merit, leading to the continued marginalisation of certain regions.
According to him, the lack of accountability in enforcing federal character principles has compromised fairness in the public sector, with senior-level recruitments often influenced by cronyism instead of competence.
Ngwu further observed that while the federal capital principle aims to balance merit with equitable state representation, its poor implementation has negatively affected discipline, morale, and institutional efficiency.
According to him, “The federal character principle, entrenched in the 1999 Constitution of the Federal Republic of Nigeria, mandates fair representation in federal appointments to reflect the linguistic, ethnic, religious, and geographic diversity of the nation.”
He continued, “Section 14(3) and (4) of the Constitution unequivocally stipulate that ‘no predominance of persons from a few states or a few ethnic or sectional groups’ should exist within the federal government or its agencies.”
Ngwu listed the NNPCL and its subsidiaries, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the National Agency for Food and Drug Administration and Control (NAFDAC), the Nigerian Ports Authority (NPA), PENCOM, NDIC, the Federal University of Technology Akure (FUTA), the National Library of Nigeria (NLN), the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Energy Commission of Nigeria (ECN), the Solid Minerals Development Fund (SMDF), and the Nigerian Nuclear Regulatory Authority (NNRA) as non comliant entities.
He accused them of consistently failing to adhere to federal character Mandates, and often bypassing regulations in their recruitment exercises.
Ngwu warned that unchecked violations of federal character laws would continue to erode the effectiveness of key legislative provisions.
He listed the affected legislative provions to include Section 14(d) & (e) of the Legislative Houses (Powers and Privileges) Act, 2017, Part I(1)-(2) of the Subsidiary Legislation 23 of 1997, and Section 11(2) of the Freedom of Information Act, 2011.
He also raised concerns about the lack of independence of the Federal Character Commission (FCC).
Ngwu observed that despite the Commission’s constitutional mandate, it remains weakened by underfunding, political interference, and a lack of enforcement power.
While approving the probe of the affected entities, the Senate directed its Committee on Federal Character and Inter-Governmental Affairs to conduct investigative hearings into their activities.
The committee is expected to submit its findings within four weeks.
The Lagos State Police Command has arrested four bank employees over their alleged involvement in a sophisticated fraud and money laundering scheme that diverted over £138,924 (more than ₦270 million) from international airline accounts.
CSP Benjamin Hundeyin, command’s spokesperson, disclosed the arrests on Monday during a press briefing at the state police headquarters in Ikeja.
According to CSP Hundeyin, “The suspects conspired to siphon funds from domiciliary accounts into personal accounts before redistributing them to multiple destinations.
“The fraud was uncovered when the affected bank detected unauthorized transactions and alerted the police.”
Explaining further, the spokesperson said: “Subsequent investigations led to the arrest of the following suspects: Oluwatobiloba Olaleye, male, aged 27, was arrested on March 12, 2025, in Ogun State. A Toyota Camry 2012/2013, suspected to be a proceed of the crime, was recovered from him.
Oladunjoye Adegoke, male, aged 33, was arrested on March 13, 2025, in Victoria Island, Lagos. A Toyota Camry (Pencil Light), suspected to be another proceed of the stolen funds, was also recovered.
Further investigation led to the arrest of Austin Alfred, male, aged 38, the Supervisor of the Trade Services Department, and Jude Uzobuaku, male, aged 36, a processor in the same department. Both facilitated the illegal transfer of funds to foreign accounts.”
Police investigations revealed that the stolen funds were initially funneled into an account belonging to one of the suspects before being transferred to multiple other accounts, making it harder to trace. Authorities are now working to track down additional accomplices and recover the remaining funds.
“The suspects are in custody and will face prosecution as the investigation continues,” CSP Hundeyin stated.
Tony Elumelu Foundation (TEF) has announced a $15 million grant to support 3,000 budding entrepreneurs from 52 African countries.
Tony Elumelu, founder, TEF, made this known on Sunday in Abuja during the unveiling of the 2025 cohort of the foundation’s Entrepreneurship Programme.
He stated that each beneficiary would receive a $5,000 seed grant to kick-start their businesses.
Elumelu, who is also chairman of Heirs Holdings, Transcorp, and United Bank for Africa (UBA), reaffirmed his commitment to empowering African entrepreneurs and transforming the continent’s economic landscape.
According to Elumelu, the foundation aims to democratise opportunity across the continent, fostering economic growth and providing young Africans with access to funding and mentorship.
“We had a vision that started in 2010; one that envisions a self-sustaining Africa, driven by the energy, vision, and resilience of young entrepreneurs.
“We understand the challenges they face in contributing to Africa’s economic transformation.
“If empowered and encouraged, these young Africans can drive meaningful change,” he said.
He noted that capital alone was not enough, highlighting the importance of business education, mentorship, and training in building successful entrepreneurs.
The entrepreneurship programme, which began in 2015, originally set out to economically empower 10,000 young Africans over 10 years, each receiving $5,000 in seed capital.
“This year marks the 15th anniversary of the foundation, and we have made a considerable impact across all 54 African countries.
“In the 21st century, Africa does not need aid; what it needs is investment in its youth,” Elumelu said.
Somachi Chris-Asoluka, chief executive officer (CEO), TEF, noted that since the programme’s launch in 2015, the foundation had.disbursed over $100 million to more than 21,000 young entrepreneurs across Africa.
According to Chris-Asoluka, these businesses have collectively created 1.5 million enterprises, and generated $4.5 billion in revenue.
“Our entrepreneurs have demonstrated that ideas are the lifeblood of the African continent.
“For the 2025 cohort, we received over 200,000 applications, and from this pool, 3,000 entrepreneurs from 52 African countries will receive $15 million in funding.
“Each entrepreneur will receive a $5,000 non-refundable seed grant; this is neither a loan nor equity,” she stated.
She further assured that the foundation had a monitoring and evaluation platform in place to track progress after disbursement, ensuring that beneficiaries adhered to their approved business plans.
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