Social Justice Committee condemns latest World Bank move to fund Shell Oil in troubled Niger Delta region of Africa

Montreal, June 21 – The Social Justice Committee today expressed its dismay that the World Bank continues its policy of support for oil companies at the expense of human rights protections and community health. This week Board of Directors of the World Bank approved a US$15 million loan to support Shell Oil activity in Nigeria; members approving the loan included Canada's representative.

Dr. Owens Wiwa, brother of activist Ken Saro–Wiwa who was executed for his opposition to oil development in the Niger Delta, said that "Shell Nigeria and its contractors continue to operate in a reckless and irresponsible manner leading to continuing devastation of the natural environment, destruction of community livelihood and communal conflicts in the Niger Delta. Last week, a contingent of the Nigerian Mobile Police, which protect Shell's investments in Ogoniland, killed an unarmed Ogoni. By approving this project, the Bank has given a seal of approval to human rights violations in the Niger Delta of Nigeria." Mr. Wiwa fled Nigeria, and now lives in Toronto.

In its June 20 press release, the World Bank refers to this loan as part of "the establishment of an initial US$30 million credit facility" targeting the local oil sector. Approval was granted even though Peter Woicke, Executive Vice President of the World Bank division supplying the loan, the International Finance Corporation (IFC), admitted that "insufficient flow of benefits to local communities has been one of the main problems in the Niger Delta. We also realize that this project presents risks."

Last month there were at least six major spills and blowouts reported at Shell installations in the Niger Delta area. Local groups have stated repeatedly that Shell's activities have worsened the situation for their communities. Yet IFC loans like this one do not have to meet the same social and environmental standards of other World Bank projects.

The SJC asks that Finance Minister Paul Martin, who decides Canada's policy at the institution as one of a Governors, ensure that Canada opposes World Bank funding for these projects with potential human rights abuse or negative social and environmental impact.

Information: Derek MacCuish,
SJC Economic Research and Advocacy Coordinator