Case Study: Shell in Nigeria
September 2006

Question 1

What specific political risk problems does Shell face in Nigeria? What are the underlying reasons for these problems?

The political risk problems in Nigeria stemmed from one of the main critical issues related to the social imbalance, inequality and discriminations of the minorities among the huge diversity of ethnic backgrounds in Nigeria. The severe intense ethnic conflict situation and circumstances in Nigeria was as such that it was highly challenging and extremely difficult to unite 250 different ethnic and linguistic groups in the country.

As Shell announced the mega oil and gas investment in Ogoniland, exploitation of the environment devastated by pollution caused by Shell's oil spills and gas flaring in the region subsequently led to extensive water pollution, acid rain, significant greenhouse gas emission and respiratory problems. This caused anger and protest by the Ogonis that resulted in violence......

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Title: Shell Case
Approximate Word Count: 2064
Approximate Pages: 9 (250 words per double-spaced page)

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