Shell Companies in Nigeria work with government, communities and civil society to fund and implement social programmes that have a lasting impact on people’s lives in the Niger Delta and Nigeria as whole. Some of these investments are mandated by federal legislation, such as requiring all oil and gas producing companies in Nigeria to contribute funds from their annual budgets to the Niger Delta Development Commission, which undertakes sustainable development projects in the Niger Delta.
Shell Companies in Nigeria undertake two types of social investment activities:
- Community-driven development programmes and initiatives, which focus on various themes as determined by benefiting communities such as community health, education, enterprise development, and infrastructure development.\
- Direct social investment, which focuses on community and enterprise development, education, community health, access-to-energy, road safety, and since 2018, bio-diversity.
GLOBAL MEMORANDUM OF UNDERSTANDING COMMUNITY DEVELOPMENT PROGRAMMES
Global Memorandum of Understanding (GMoU)
- Since 2006, The Shell Petroleum Development Company JV has supported community-driven development programmes in the Niger Delta that are delivered through the Global Memorandum of Understanding (GMoU).
- A GMoU is an agreement that brings a group (or cluster) of communities together with representatives of state and local governments, SPDC and NGOs.
- Under the terms of the GMoUs, the SPDC JV provides secure five- year funding for communities to implement development projects of their choice, which are managed by Cluster Development Boards (CDBs) under the guidance of mentoring NGOs.
- Currently there are 39 active GMoU clusters in Rivers, Delta, Bayelsa and Abia States and since inception in 2006 a total of $239 million (N44.36 billion) has been disbursed to these clusters to fund development projects.
Types of community development projects
- Projects funded under the GMoU model cover community health, education, enterprise development and social infrastructure (water and power supply improvement, construction of market stalls, sanitation and community centres).
- This partnership model is aimed at bringing about sustainable initiatives; improving the business interface with communities; and engendering socio-economic development in communities where we operate.
- LiveWIRE is Shell’s flagship youth enterprise development programme that provides training and finance to young people between the ages of 18-35 to start or expand their own businesses.
- Launched in Nigeria in 2003, this programme enables young entrepreneurs to convert their bright ideas into sustainable businesses creating wider employment and income generation opportunities.
- Three hundred and thirty people were trained in 2018 and to date, the LiveWIRE programme has trained 7,072 Niger Delta youths in enterprise development and provided business start-up grants to 3,817.
Shell LiveWIRE in Ogoniland
- LiveWIRE was extended to Ogoniland in 2014, with the objective of raising living standards and reducing crude oil theft through the promotion of sustainable alternative livelihoods.
- Supporting Ogoni youths in sustainable alternative livelihoods is in line with one of the recommendations of the 2011 United Nations Environmental Programme (UNEP) Report for the restoration of the Ogoni environment.
- More details about this programme and other initiatives can be found in the Ogoniland section of the Briefing Notes.
Shell LiveWIRE 2018 Top Ten Innovators Awards
- For the second year running two Nigerian companies received awards in a Shell LiveWIRE global competition called the ‘Top Ten Innovators Awards' aimed at creating role models for other young entrepreneurs and demonstrate that innovation supports growth and job creation.
- De Rabacon Plastics, a Bayelsa State-based recycling company won an outstanding achievement award of $10,000 (N3 million23) while another Nigerian firm, Alternate Energy Limited emerged as the second runner-up in the Energy Solutions category to also win $10,000.
- De-Rabacon Plastics recycles end-consumer plastics into viable commercial products, while Alternate Energy provides solar and wind powered community solutions, including water treatment and off-grid solar farms.
Shell Companies in Nigeria have a long history of supporting education through scholarships and other initiatives. Since inception in the 1950s, the Shell scholarship scheme has supported several thousands of “Shell Scholars” many of whom are among today’s captains of industry, thought leaders, traditional rulers, and officials of various arms of government.
Key educational data
- In 2018, approximately $5.9 million (N1.78 billion24) was invested in scholarships by The Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) and Shell Nigeria Exploration and Production Company (SNEPCo).
- Grants were awarded to 532 secondary school students and 430 university undergraduates in 2018.
- Shell Companies in Nigeria have awarded 8,758 secondary and 5,165 university educational grants between 2011 and 2018. This includes 287 secondary school scholarships to people with special needs and physical challenges.
Both the SPDC JV and the SNEPCo continue to invest in the Cradle- to-Career scholarship programme, which pays for children from rural communities to attend some of the country’s top secondary schools.
- Since 2010, a total of 540 students have received scholarships, which targets pupils from the Niger Delta.
- Each year 60 students receive scholarships at four top private secondary schools in Port Harcourt - Brookstone Secondary School, Jephthah Comprehensive College, Archdeacon Brown Educational Centre and Bloombreed High School.
- A national version of the programme was expanded to the entire country by SNEPCo in 2014, which has benefited 375 students mostly from public primary schools.
- For the 2019/2020 academic year, 108 students will receive scholarships from seven leading private schools across Nigeria – Lead Forte Gate College, Lagos; Premiere Academy, Abuja; Nigerian Tulip International College, Kaduna State; St Francis Catholic Secondary School, Lagos; Top Faith International Secondary School, Akwa Ibom State; Edgewood College, Lagos; and Grundtvig Secondary School, Anambra State.
Development of school infrastructure
Shell Companies in Nigeria also support initiatives to provide a positive learning environment for students and teachers, as well as enhance curriculums.
Shell Nigeria Gas (SNG)
SNG recognizes that education is a critical need for communities in its areas of operations and is currently constructing a block of five classrooms and a water system for the Ilogbo-Asowo Community High School, the only public school situated in Ilogbo, Ogun State.
Shell Nigeria Exploration and Production Company (SNEPCo)
- In 2018, SNEPCo donated four ultramodern science laboratories to Eruku Secondary Commercial School in Ekiti Local Government Area of Kwara State.
- The well-equipped laboratories will enable students to develop their potential in science, technology, engineering and mathematics.
A lack of world class research institutions and limited access to technology are key challenges in enabling Nigerians and Nigerian companies to play an even greater role in the oil and gas value chain. Therefore, Shell Companies in Nigeria, through scholarships and partnerships with universities, focus on promoting educational advancement and the pursuit of academic excellence for Nigerians.
- The SPDC JV awards scholarships under two broad categories:
- The National Merit Award, which is open to every first year Nigerian undergraduate; and
- The Areas of Operation Merit Award, which specifically targets students from communities where SPDC operates.
- More than 16,000 applications were received in 2018 from prospective candidates in Nigerian universities.
- At a post-graduate level, the SPDC JV Niger Delta Post Graduate scholarship programme has benefited 79 individuals since it was introduced in 2010. More details on this programme can be found in the Nigerian Content Development section.
- In 2016, SNEPCo launched its National University Scholarship (NUS) programme to provide awards to students, through their undergraduate studies, premised on consistent high performance.
- Today, SNEPCo is supporting 298 undergraduates towards achieving their degrees.
- In 2017, SNEPCo launched its first Post Graduate Scholarship Award programme for qualifying applicants nationwide to further their education in courses that are relevant to the oil and gas industry, with specific focus on Geotechnical Engineering and Hydrography.
- Three scholarships were awarded for a one-year Master’s Degree programme in partnership with three UK universities - the University of Birmingham, Newcastle University and Plymouth University - for the academic year commencing 2017.
Centres of Excellence
To promote the emergence of industry ready graduates at university level, Shell Companies in Nigeria also invest in specific initiatives at Nigerian universities. To this end, the SPDC JV is collaborating with two universities to support two centres of excellence:
University of Benin: Geosciences and Petroleum Engineering
- Established in 2012, a Centre of Excellence (CoE) in Geosciences and Petroleum Engineering at the University of Benin offers three specialised postgraduate degrees in Geology, Geophysics and Petroleum Engineering.
- Each programme runs for 18 months, six of which are spent acquiring practical industry experience.
- More than 85 students have graduated since 2012, seven of whom have been employed by Shell while others have gained employment in other companies within the industry.
Rivers State University of Science and Technology: Marine and Offshore Engineering
- Established in 2017, the Marine and Offshore Engineering CoE at the Rivers State University of Science and Technology runs an 18-month Master’s and Diploma programmes in Marine Engineering, Naval Architecture as well as Offshore and Subsea Engineering.
- Ten students are currently participating in the programme, which covers classroom lectures, practical sessions, term project modules and a 6-month internship in the oil and gas industry.
Shell Professorial Chair Programme
Another highly regarded initiative sponsored by Shell Companies in Nigeria that supports learning and research at a tertiary level is the Shell Professorial Chair Programme.
- The SPDC JV has endowed six active Professorial Chairs at the following Nigerian universities: Obafemi Awolowo University, University of Nigeria in Nsukka, Ahmadu Bello University Zaria, University of Uyo and the Federal University of Petroleum Resources in Effurun (FUPRE).
- The Chairs are in the fields of Geophysics, Petroleum Engineering, Mechanical Engineering, Environmental Management and Control as well as Climate Change & Biodiversity Conservation.
- The Chair in Light Weight Automobile Engine Development at FUPRE is the most recent endowment and is expected to contribute to the growth of local content in Nigeria’s automobile industry.
Sabbatical and Internship Programme
The SPDC JV’s sabbatical and internship programme, which was established in 1980 is another initiative that contributes to the development of higher education in Nigeria.
- In January 2018, 10 professors and 15 research interns commenced a one-year research programme and will share their findings with SPDC in fields such as biodiversity, petroleum engineering, geophysics, impact assessment, community health and oil and gas exploration.
- The beneficiaries are from the Universities of Benin, Ibadan, Calabar, Port Harcourt, Rivers State University, Niger Delta University, Michael Okpara University of Agriculture, Federal University of Petroleum Resources Effurun, Federal University of Technology Owerri, Enugu State University of Technology and Obafemi Awolowo University.
Youth and Sports Development
Shell Companies in Nigeria also strive to develop youths in their host communities by equipping them with the appropriate tools and skills necessary for jobs.
Port Harcourt Public Library
- To mark Nigeria’s centenary anniversary, SPDC and its JV parties donated a modern public library to the Port Harcourt Literary Society in November 2016.
- Equipped with books, internet access and reliable power supply the library, to which SPDC contributed around $5 million (N1.58 billion25), will deliver significant benefits and positively impact the lives of many residents of Port Harcourt.
NNPC/Shell Cup Football Tournament
- Another initiative helping to develop Nigerian youths is the NNPC/Shell Cup Football Tournament, a nationwide platform established in 1998 to discover and nurture teenage football talent from secondary schools.
- Now in its twentieth year, we are proud that the tournament played a role in reducing the number of boys who might have otherwise abandoned their education.
- In 2014, we launched a partnership with one of the most successful youth academies in the world, the Feyenoord Rotterdam’s Youth Academy of The Netherlands.
- In 2016 and 2017, Feyenoord Rotterdam held coaching clinics in Lagos for the four semi-finalists of the tournament as well as coaching sessions with the games masters and coaches of the state champions of the 36 states and the Federal Capital Territory.
- In addition to coaching in Nigeria, the two most valuable players (MVPs) in the tournament in 2016 and 2017 were sponsored to visit Feyenoord Rotterdam’s Football Academy for week-long coaching clinics. One of the MVPs was also awarded an International Summer School Scholarship at the University of Sussex in the United Kingdom.
Collaboration between Shell Nigeria Gas and Federal Road Safety Corps
- In 2018, SNG continued to demonstrate its commitment to road safety in Ogun State by collaborating with the Federal Road Safety Corps (FRSC) to launch the Ogun Gateway Road Safety Strategy from 2017 – 2030.
- The initiative, which is in line with the UN Decade of Action Declaration for Road Safety, is expected to drive the long-term plan of road safety management in Ogun State.
- SNG and the FRSC also held several road safety campaigns at motor parks and a road safety stakeholder forum which have reached over 500 people.
Training of firefighters in Ogun and Abia State
- SNG held a 1-day hydrocarbon training for firefighters from Ogun State Service and Abia State Fire Service and firefighting equipment to further strengthen the capability of the service.
Shell Companies in Nigeria have supported community health projects and programmes in the Niger Delta and other parts of Nigeria since the 1980s, with equipment and pharmaceutical donations, emergency care and screening services. This includes cancer care as well as health systems strengthening initiatives, health financing programs, maintenance of hospitals and public health interventions in HIV/AIDS and malaria control.
Today, SNEPCo and SPDC JV support 20 health centers and five signature health intervention projects throughout the country. This has empowered the people to thrive and perform optimally.
Health-In-Motion community care programme
- Partnerships with the Federal and State Ministries of Health have been instrumental to community health programmes undertaken by Shell Companies in Nigeria.
- Health-In-Motion (HIM) is a flagship mobile health outreach programme that takes free medical services to the doorsteps where people live and work.
- Its services have expanded to include the provision of resilience care and support to communities.
- Since 2010, more than 640,000 people have benefited from this activity reaching an average of 50 communities annually in the Niger Delta and other parts of Nigeria.
- In 2018, SPDC JV, SNEPCo, and SNG conducted HIM programmes and other interventions in Imo, Bayelsa, Delta, Rivers and Ogun States where over 34,608 people have benefitted from the services.
Community Health Insurance Scheme (CHIS)
Description of CHIS and health services offered
- The Community Health Insurance Scheme (CHIS), which was established in 2010 in partnership with the Rivers State Government, is an SPDC JV flagship project that delivers affordable integrated health care to beneficiaries.
- Clients in the scheme pay an annual premium which is well below the usual cost of treatment - equivalent to $30 per annum (N10,00026) - a figure which has not changed in the last five years.
- The CHIS package covers about 95% of the people’s health care needs (primary and secondary care).
- Co-payment for specific services have been expanded to include child birth, seizure disorders, diabetic and ophthalmic care.
Successfully launched at Obio Cottage Hospital in Port Harcourt
- CHIS was piloted at Obio Cottage Hospital in Port Harcourt that has made the facility a one-stop shop for affordable and quality assured health care.
- The community health financing initiative has been replicated in three other locations and has highlighted the possibilities for universal health coverage in Nigeria, drawing commendations from communities, developmental partners and government.
- Since its launch, average patient utilization at Obio increased from about 600 to about 7,400 per month in 2018, making it one of the most utilized health facilities in the region.
- More than 60,000 people had been enrolled in the scheme and by the end of 2018 nearly 11,000 new clients registered for CHIS.
- In 2018, SPDC JV also provided technical support to other companies and partners for CHIS replication in other communities
Oloibiri Health Programme
- Sponsored by the Shell Group to mark Nigeria’s centenary celebration in 2016, the Oloibiri Health Programme is a local government-wide initiative that strengthens the financing and delivery of health care as well as development and availability of accurate data for health planning in Ogbia Local Government Areas of Bayelsa State.
- Between 2016-2018, the programme has delivered household health services to nearly 13,000 persons in more than 3,100 homes across nine communities.
- The Kolo General Hospital – the referral hub - has been upgraded and equipped to provide secondary care services to Health for Life Centers (which includes Oloibiri) and 15 Ward Health Centers.
- Medical equipment was donated to the School of Health Technology Otuogidi, Bayelsa State, to support its accreditation process.
- Knowledge and skills for over 130 health workers at community, local and state government levels have been improved and more than 3,100 individuals reached with health promotion interventions.
SNEPCo Health Initiatives
SNEPCo has continued to recognize the value of a healthy nation and has invested in several sustainable health initiatives using a targeted approach to improve access to health and strengthen healthcare systems in Nigeria.
Centre for Cancer Care National Hospital, Abuja
- In 2018, a best in class LiNAC Radiotherapy machine was installed that enhanced the skills of health workers to deliver quality assured cancer treatment at the Centre for Cancer Care National Hospital, Abuja.
Ogijo Primary Health Centre, Ogun State
- Established in 2014, the Drug Revolving Fund at the Ogijo Primary Health Centre in Ogun State makes available essential drugs to patients in a sustainable manner.
- Also, a structured skills enhancement programme of health workers has improved service delivery contributing to better maternal and child health indices. For example, between 2017 and 2018, there was a 52% increase in Ante-natal (ANC) attendance and a 170% increase for new client utilization.
- A permanent facility is currently being constructed for the Ogijo Health Centre
Medical Emergency Response Improvement Program, Lagos State
- Through the Lagos Medical Emergency Response Improvement Program, SNEPCo improved the skills of nearly 90 medical staff on First Aid, Basic Life Support and Advanced Cardiovascular treatment.
General Hospital Odan, Lagos State
- SNEPCo provided onsite capacity building and supervision for health workers at the Accident and Emergency unit of the General Hospital Odan in Lagos State.
- This resulted in enhanced quality care standards, for example, 16% improvement in infection prevention and control, and 15% increase in availability of emergency drugs.
Partnering with civil society to fund treatment
- Working with the Irede Foundation, artificial limbs were provided to two children following amputations due to road traffic accidents that allowed them to return to school.
- In collaboration with the Extended Hands Foundation, medical procedures were administered to 25 Vesico Vaginal Fistula (VVF) patients in Sokoto State, which provided an opportunity for their reintegration back into society.
Employees of Shell Companies in Nigeria have sustained a culture of care by supporting humanitarian programmes in Nigeria especially during crises and disaster.
Internally displaced persons north east Nigeria: 2017
- SNEPCo and employees from Shell Companies in Nigeria contributed $1.1 million (N333.33 million27) to Family Health International (FHI 360), a global relief agency to provide humanitarian assistance to internally displaced persons (IDPs) in north east Nigeria. More than 50,000 in Dikwa local government area of Borno State benefited from a broad range of activities cutting across health, protection, water, sanitation, hygiene and nutrition services.
- The integrated nature of services provided was a key factor in the successful containment of a cholera outbreak in Dikwa late in the year. Separately, Shell Group contributed approximately $2 million (N606.06 million28) to Mercy Corps, another global relief agency, to provide emergency humanitarian assistance to 1,000 vulnerable families, also in Dikwa, Borno State.
- Kits containing essential household items were distributed and people were provided with skills, tools, and seeds needed for basic agriculture and cultivation to help them rebuild and become more resilient to future shocks and stresses.
- SPDC provided relief materials worth approximately $1 million (N303 million29) to communities impacted by devasting floods in the Niger Delta states of Rivers, Bayelsa and Delta.
- The provision of food and non-food items as well as medical supplies reached more than 4,000 displaced families.
- Staff of Shell Companies in Nigeria also made personal donations to complement SPDC’s donation.
- In addition, SPDC donated $125,000 (N35 million30) to the National Red Cross to support the provision of relief materials to nominated Local Government Areas and communities affected in Kogi State as well as provide relief materials to affected families in Anambra State.
Other healthcare facts
- Mammography services for breast cancer prevention and renal dialysis services have been provided by SNEPCo at the Iyi-Enu Mission Hospital in Anambra State. More than 825 patients have been screened and treated there.
- Over 2,200 women from communities near SPDC JV facilities and projects (Forcados Export Terminal, Gbaran Ubie Gas Plant and Assa North) have benefited from breast and cervical cancer initiatives while 145 with suspected pathology had mammography screening.
- Over 1,770 women from communities near SPDC JV facilities and projects (Adibawa, Gbaran, Forcados, Assa North, Nun River, Kolo creek and Seventy patients with suspected pathology had mammographs; while 52 were screened for cervical cancer under visual inspection and received on the spot cryotherapy treatment, while others received referrals.
- In 2018:
- Approximately 26,000 babies were fully immunized in SPDC JV supported health facilities in the Niger Delta.
- More than 125 community health workers were trained in diverse health areas to drive capacity, qualitative health care delivery and promote healthy living in host communities.
- The Shell Resilience module incorporated into its community care activities has resulted in positive psychosocial attitudes.
- The number of babies delivered at Obio Cottage Hospital rose to an average of 300 per month (from 42 in 2010), the highest in the region.
ACCESS TO ENERGY INITIATIVES
All On Partnerships for Energy Access
What is All On?
- Recognising that Nigeria has one of the highest levels of energy poverty in the world, All On was established by Shell as an independent Nigerian impact investing company to work with partners to increase access to commercial energy products and services for under-served and un-served off-grid energy markets in Nigeria, with a special focus on the Niger Delta.
- All On seeks both financial returns and social impact - to provide and/ or improve access-to-energy for low income households and SMEs in the country.
- All On invests in off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies deployed by both foreign and local access-to-energy companies that complement available grid power across Nigeria and help bridge the significant energy gap.
- The company provides debt and equity capital to early and growth- stage businesses in Nigeria’s emerging off-grid energy sector ranging from $50,000 to $3 million (N15 million to N909 million).
- All On became fully operational in 2017 and approved a number of investments in solar home system (SHS) provider Green Village Electricity, Nigeria's leading mini-grid company.
Activities in 2018
In 2018, All On has firmly established itself as a key industry investor, convener, coordinator, matchmaker, and thought leader for the off-grid energy sector in Nigeria and continued to make new investments, mostly in the Niger Delta. For example:
- It provided a $1.2 million debt facility to solar home systems (SHS) provider Lumos that has supported the deployment of SHS to communities in the Niger Delta.
- In due course, more than 12,000 SHS are planned to be in operation across the Niger Delta, including over 2,000 within targeted SPDC host communities.
- All On provided convertible debt to Cold Hubs, a company that provides solar powered refrigeration for agriculture produce in markets in Nigeria which increases the shelf life of the produce and decreases food spoilage.
- The funds will be used to expand the ColdHubs operation to markets in the Niger Delta.
United States African Development Foundation (USADF)
- All On also completed the first year of its co-investment partnership with the United States African Development Foundation (USADF), making seven co-investments in early stage Nigerian off grid energy companies Auxano, Alyx, Creeds Energy, Darway Coast, Eastwind, iKabin, and Prado Power.
Co-Creation Hub and Nigerian Climate Innovation Centre
- In addition, All On contributed to the development of new businesses through a grant to the Co-Creation Hub, and a partnership (and grant) with the Nigerian Climate Innovation Centre, hosted by the Pan Atlantic University’s Enterprise Development Centre in Lagos.
- In both cases, ten off grid energy businesses that were selected through national challenge competitions are being incubated for further investment by All On and other investors.
Niger Delta Off Grid Energy Fund
- Nigeria’s Bank of Industry (BOI) approved the co-financing along with All On of an approximately $3 million (N1 billion) Niger Delta Off Grid Energy Fund to provide low cost debt to energy providers to deploy off grid power solutions to communities and small businesses in the Niger Delta.
- The fund, which is equally financed by the two organizations will be managed by the BOI and is expected to operationalised in early 2019
As was the case in previous years, Shell Companies in Nigeria have earned recognition for their sustainable development efforts.
They won the 'Best Company in Climate Action' award for Afam VI Power Plant’s combined cycle gas turbine technology at the 12th edition of The Sustainability, Enterprise and Responsibility Awards (SERA)-Corporate Social Responsibility (CSR) Awards. This technology significantly contributes to the reduction of greenhouse gas emissions, eliminating over 500,000 tons of CO2 emissions/ year.
The SERA–CSR Awards is an annual event to celebrate organisations that invest resources to improve the socio-economic living conditions of people in Nigeria and Africa.
23 – Based on 2018 exchange rate.
24 – Based on 2018 exchange rate.
25 – Based on 2016 exchange rate.
26 – Based on actual premium.
27 – Based on 2017 exchange rate.
28 – Based on 2017 exchange rate.
29 – Based on 2018 exchange rate
30 – Based on 2018 exchange rate
More In Briefing Notes
The deep waters of the Gulf of Guinea hold rich abundant oil and gas resources. Tapping into these fields will deliver vital energy to help meet the growing energy demand in Nigeria and international markets.