Shell Faces Corruption Allegations Over Gas Pipeline Project

Allegations of corruption have surfaced involving global oil giant Shell and Oyo State Governor Seyi Makinde, amidst a regulatory dispute concerning an $100 million gas pipeline project between Sagamu and Ibadan, scheduled to begin construction in June 2026. The project is backed by a license issued under the Petroleum Industry Act 2021, granting NGML and NIPCO exclusive rights to distribute gas in Ibadan for 25 years.

However, construction has been halted following a stop work order from the Oyo State government, led by Governor Makinde, with no public justification provided. The situation has raised significant concerns regarding the intersection of corporate influence and state-level actions, particularly as Shell has faced numerous corruption claims and environmental damage allegations in Nigeria.

The ongoing regulatory confusion and the political implications of these allegations could jeopardize the investment climate in Nigeria's gas sector, which is crucial for stabilizing the power industry and reducing reliance on diesel.