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.
Social investment activities focus on community and enterprise development, education, health, access-to-energy and since 2016, road safety. Community-driven development programmes and initiatives are also funded, which focus on various themes as determined by benefiting communities.
Global Memorandum Of Understanding (GMoU) Community Development Programmes
Since 2006, the SPDC 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. Projects include power supply improvement, construction of market stalls, sanitation, water supply improvements and community centres.
Currently there are 37 active GMoU clusters in Rivers, Delta, Bayelsa and Abia States. Since 2006 a total of $228 million (N41.10 billion) has been disbursed to these clusters to fund development projects. This partnership model is aimed at bringing about sustainable initiatives; improving interface with communities; and engendering socio-economic development in communities where Shell Companies in Nigeria 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 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 opportunities for communities.
Two hundred and thirty people were trained in 2017. To date, the LiveWIRE programme has trained 6,780 Niger Delta youth in enterprise development and management, and provided business start-up grants to 3,493.
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 youth 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.
In 2014, the Shell Nigeria Exploration and Production Company (SNEPCo) awarded 20 young entrepreneurs approximately $4,000 (N0.7 million2) each to fund their business ideas across various sectors including health care, IT, agriculture, manufacturing and retail of petroleum products. SNEPCo ensures that the beneficiaries are not only given funds but that they are also equipped with essential knowledge, business skills and resources to run sustainable businesses.
In November 2017, the Shell LiveWIRE programme launched a global competition called the ‘Top Ten Innovators Awards’. The competition, open to alumni of Shell LiveWIRE, aimed to create role models for other young entrepreneurs, and demonstrate that innovation supports growth and job creation. Two former Nigerian Shell LiveWIRE entrepreneurs received merit awards of $5,000 (N1.51 million3) each in recognition of their innovative and creative ideas.
Shell’s commitment to empowering young people to come up with creative ideas that address the world’s energy challenges was again shown in December 2017 at the SPDC-sponsored Shell ‘#MaketheFuture Accelerator’ event in Port Harcourt, Rivers State. The Accelerator event – previously held in Brazil, the UK, Singapore and India – aims to scale up businesses of high performing LiveWIRE entrepreneurs towards providing more and cleaner energy solutions. One of the ‘Top Ten Innovators’ merit award recipients – Atalor Ngozi Deborah, owner of the De-Rahbs Energy Services – won top prize in the #MaketheFuture Accelerator event. De-Rahbs is a renewable energy service company that installs, services and repairs solar energy equipment and also trains aspiring engineers and energy entrepreneurs.
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. In 2017, $5.2 million (N1.57 million33) was invested in scholarships by The Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) and SNEPCo. Grants were awarded to 540 secondary school students and 599 university undergraduates in 2017. Shell Companies in Nigeria have awarded 8,192 secondary and 5,034 university educational grants between 2011 and 2017. This includes 185 secondary school scholarships to people with special needs and physical challenges.
Both the SPDC JV and 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 480 students have received Cradle-to-Career scholarships from the SPDC JV, which targets pupils from the Niger Delta. A national version of the programme was expanded to the entire country by SNEPCo in 2014, which has benefited 268 students mostly from public primary schools.
Each year 60 students benefit from the SPDC JV Cradle-to-Career scholarship programme at four top private secondary schools in Port Harcourt - Brookstone Secondary School, Jephthah Comprehensive College, Archdeacon Brown Educational Centre and Bloombreed High School.
For the 2018/2019 academic year, 104 recipients of the SNEPCo Cradle- to-Career scholarship programme will attend six leading private schools in 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; and Grundtvig Secondary School, Anambra State.
Shell Nigeria Gas (SNG) and Schools
SNG also recognises that education is a critical need for communities residing in the areas of its operations and supports efforts to provide a positive learning environment for students and teachers.
To this end, in 2016, the company donated a block of five classrooms, a stand-alone toilet facility, school water system, upgraded football field, and renovated five blocks of 19 classrooms for shared use by the African Church Community Secondary School and the co-located Ebenezer African Church Primary School in Ewupe. The donation was the first phase of SNG’s investment in the community, which host the company’s facilities in the Ota area of Ogun State.
Phase two took place in 2017 when SNG donated a modern information communications technology (ICT) centre and well-equipped science laboratories to the African Church Community Secondary School in addition to investments in existing school facilities in the Isorosi and Ijaliye communities of Ogun State.
About 2,000 children will benefit from these initiatives in Ogun State.
SNG and Road Safety
Since 2007 the company has held 15 road safety awareness events and educated more than 5,000 people within the Ota/Sango area.
In 2016, SNG launched its Road Safety Education and Awareness Campaign at an event in Ota, Ogun State which was attended by commercial drivers, motorcyclists and other road users as well as local and state government officials and civic leaders. Engagements and presentations focused on defensive driving, road rules, tyre safety, usage of seat belts and pedestrian safety.
In 2017, SNG and the Federal Road Safety Corps held the second Road Safety Education and Awareness campaign for commercial drivers, cyclists, pedestrians and other road users in Ota, Ogun State. The theme for the campaign was “Drug / Alcohol & Driving – A deadly combination”, selected to address the high rate of road crashes and fatalities that were attributed to the use of drugs and alcohol by commercial drivers.
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 20,000 applications are received every year from prospective candidates in Nigerian universities. At a post-graduate level, the SPDC JV Niger Delta Post Graduate scholarship programme has benefited 69 individuals since it was introduced in 2010. More details on this programme can be found in the Nigerian Content Development section.
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 help sustain human and technological advancement at university level, Shell Companies in Nigeria also invest in specific initiatives at Nigerian universities.
To this end, the SPDC JV has collaborated with the University of Benin since 2012 to fund a Centre of Excellence (CoE) in Geosciences and Petroleum Engineering. The CoE 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 55 students have graduated since 2012, seven of whom have been employed by Shell.
Another CoE, specialising in Marine Engineering and Offshore Technology was established in 2017 at Rivers State University of Science and Technology in Port Harcourt. The CoE, apart from building teachers’ capacity, will run 18-month Masters and Diploma programmes in Marine Engineering, Naval Architecture as well as Offshore and Subsea Engineering. The academic package 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, University of Port Harcourt, 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.
Research conducted at these Professorial Chairs have already been applied in the field. For example, in 2012 at the University of Port Harcourt the Petroleum Chair produced the Optiwell well-bore stability software, use of which has significantly reduced drilling time as well as costs associated with mud loss and other drilling challenges. Also, the Climate Change & Biodiversity Chair at the University of Uyo has identified eight snake repellent plants that could be used in an environmentally friendly way to control snakes from residential areas.
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 2017, eight professors and 11 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 recipients are from the Universities of Benin, Ibadan, Calabar, Ilorin, Lagos, Nigeria (Nsukka), Niger Delta University, Ladoke Akintola University of Technology, Ahmadu Bello University and Michael Okpara University of Agriculture.
Youth Skills Development
Shell Companies in Nigeria also strive to develop youth in their host communities by equipping them with the appropriate tools and skills necessary for jobs.
To mark Nigeria’s centenary anniversary, SPDC and its JV Partners donated a modern public library to the Port Harcourt Literary Society in November 2016. Equipped with books, internet access and reliable power supply it is expected that the library, to which SPDC JV contributed around $5 million (N1.58 billion4), will deliver significant benefits and positively impact the lives of many residents of Port Harcourt.
Another initiative helping to develop Nigerian youth 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 nineteenth 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 outstanding players in the tournament in 2016 and 2017 were sponsored to visit Feyenoord Rotterdam’s Football Academy for week-long coaching clinics.
Access to Energy Initiatives
In 2016 Shell launched an educational public service campaign in Nigeria as part of a global effort to encourage debate on how a rapidly expanding world population can meet its energy needs. The campaign, titled #makethefuture featured events such as music video launches at Africa’s first human and solar-powered football pitch at the Federal College of Education (Technical), Akoka in Lagos. The traditional football pitch was transformed by Shell in 2015 using more than 90 underground tiles that capture kinetic energy created by the movement of players. This bright energy idea allows students to play at night using floodlights powered both by kinetic energy and solar panels and provides a safer and more secure space in the heart of the community. In 2017 Shell unveiled the next chapter of its #makethefuture campaign by leveraging the power of music to draw people’s attention around access to energy. Nigerian music icon, Yemi Alade, joined other international stars to launch Shell’s new music video ‘On Top of the World’ which highlighted a diverse range of energy initiatives around the world.
All On Partnerships for Energy Access
Currently, approximately 120 million Nigerians are either off the electricity grid or receive less than four hours of grid power a day. Only India has a larger energy gap. The need for collaboration among business, communities and entrepreneurs to increase access to energy has been advanced in Nigeria with the establishment of an independent impact investment company seeded with funding from Shell called All On Partnerships for Energy Access (All On).
Headquartered in Lagos, All On works with private and public-sector partners to increase access to affordable, reliable and sustainable energy sources for off-grid low income households, small-to medium- sized businesses and communities in Nigeria, with a particular focus on the Niger Delta.
All On became fully operational in 2017 and approved a number of investments. Equity and debt investments have been made in solar home system (SHS) provider Lumos and Green Village Electricity, Nigeria's leading mini-grid company, as well as a convertible debt facility for Cold Hubs for expansion of their market place cold storage business.
Debt and equity investments were also approved for Arnergy, the leading indigenous SHS company. All On also signed a co-funding agreement with the United States Africa Development Foundation, a USA government agency, for investments to match their grant funding with debt for up to 30 Nigerian off grid energy providers. In order to contribute to building the nascent off-grid energy sector in Nigeria, All On has also made small grants to facilitate market building activities.
This includes a grant to the Co Creation Hub, Nigeria's leading tech innovation hub, to seed and incubate up to ten new companies operating in the field of energy access. In addition, All On is in the
process of giving grants that support market research and awareness for the off-grid energy sector.
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 System Strengthening programs, maintenance of hospitals and implementation of malaria and HIV/AIDs control programmes. Today, SNEPCo and SPDC JV support 20 health centres and five signature health intervention projects throughout the country.
Partnerships with the Federal and State Ministries of Health and NGOs have been instrumental to the success of community health programmes undertaken by Shell Companies in Nigeria. Health-In-Motion (HIM) is a mobile health outreach programme that takes free medical services to the doorsteps where people live and work. Since 2010, more than 610,000 people have benefited from this programme in the Niger Delta and other parts of Nigeria. During 2017, SPDC and SNEPCo conducted specific HIM outreach programmes to communities in Imo, Rivers and Lagos States and in Abuja.
Community Health Insurance Scheme
SPDC JV’s flagship project, the Community Health Insurance Scheme (CHIS), piloted at Obio Cottage Hospital in Port Harcourt, has made the facility a one-stop shop for affordable and quality assured health care. The community health financing initiative, which has expanded to three other health centres, has highlighted the possibilities for universal health coverage in Nigeria, drawing commendations from communities, developmental partners and government. CHIS was set up in 2010, in partnership with local communities and the Rivers State government.
Since its launch, the average number of patients at the facility increased from about 600 to about 7,500 per month in 2017, making Obio one of the most utilised health facilities in the region. CHIS covers more than 95% of community health care needs. Through the Obio scheme people pay an annual premium equivalent to about $30 (N10 thousand5), well below the usual cost of treatment. By the end of 2017, more than 50,000 people had been enrolled in the programme from inception. Since 2010, the number of babies delivered in the hospital has risen from an average of 14 to 300 babies per month in 2017, the highest in the region. In total, more than 19,000 babies have been delivered safely at Obio from programme inception to date.
Oloibiri Health Programme
The Oloibiri Health Programme (OHP), a local government-wide health system initiative aimed at strengthening health care in the Ogbia Local Government Area (LGA) in Bayelsa State is being implemented with funds from Shell Group. The OHP has delivered household health services for more than 8,300 persons in 2,814 homes. The Kolo General Hospital - the referral hub for the LGA - has been strengthened and upgraded to serve the delivery model with five Health for Life Centres (which includes Oloibiri) and 15 Ward Health Centres.
Other SNEPCo Health Initiatives
Over the last few years, SNEPCo has implemented several health initiatives in different parts of Nigeria, including the Iyi Enu health intervention in Anambra State and the Lagos Medical Emergency Response Improvement Programme. The initiatives support the government in delivering effective health care with the communities taking ownership of the facilities and programmes. SNEPCo continues to identify potential areas of collaboration with government, non-governmental and community stakeholders. To this end, a health concept validation exercise was conducted with the Federal Ministry of Health and other developmental partners in July 2016. This exercise explored partnership opportunities in health care delivery, culminating in the identification of new signature projects. In 2016 the validation exercise delivered two Health-in-Motion programmes to under-served communities around Lagos Island and Ojota, reaching more than 4,500 people aimed at embedding health care and a road safety culture (Goal Zero) to the road driver community.
In 2017, SNEPCo and employees from Shell Companies in Nigeria contributed $1.1 million (N333.33 million6 ) 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 million7 ) to leading global organisation Mercy Corps, 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.
Other healthcare facts
- Mammography screening 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 2,221 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.
- SNEPCo has developed the capacity of health workers in states in the South West and South South regions, and donated incubators and other health equipment to the Federal Medical Centre in Yenagoa, Bayelsa State.
- The BEARS Foundation has been supported by SNEPCo in about 50 congenital cleft lip and palate reconstructive surgeries.
- SNEPCo equipped the health centre at the SOS Village, Isolo, Lagos and supported a neonatal hearing screening programme at the University of Ilorin Teaching Hospital in Kwara State.
- 288 nurses/midwives from host communities in the Niger Delta received training scholarships including equipment and completed certification training through the SPDC JV in 2015.
- In 2017, approximately 20,000 babies were fully immunized in SPDC JV supported health facilities in the Niger Delta.
- I n 2017, more than 81 community health workers were trained in diverse health areas to drive capacity, qualitative health care delivery and promote healthy living in host communities.
- I n 2017, a SNEPCo Quality Improvement Intervention using Shell Health Resilience modules improved customer satisfaction from 60% to 89% at the Accident and Emergency Unit of General Hospital, Odan Lagos.
As was the case in previous years, in 2017, Shell Companies in Nigeria have earned recognition for their sustainable development efforts. They won two awards at the eleventh edition of The Sustainability, Enterprise and Responsibility Awards (SERA)-Corporate Social Responsibility (CSR) Awards.
Shell Companies in Nigeria won the Best Nigerian Company in Sustainability Innovation in Africa Award category, which resulted from a renewable energy solution as an alternative for powering the SPDC JV supported Obio cottage hospital in Port Harcourt. A 53% net decrease in energy cost was realised by this renewable energy solution, despite
an increase in energy consumption at Obio. Shell Companies in Nigeria also won the Best Company in Affordable and Clean Energy, which resulted from its support to entrepreneurs for coming up with bright energy ideas through the globally acclaimed Shell LiveWIRE programme.
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.
1- Based on SPDC published booking rates between 2006-2017.
2- Based on 2014 exchange rate.
3, 4, 7 - Based on 2017 exchange rate.
5- Based on 2017 exchange rate.
6- Based on actual premium.