Oil major, Shell has agreed to pay a Nigerian fishing community £55 million to Bodo Community in Bayelsa state over an oil spill that occurred in 2008.
Analysts say it would further open a floodgate of litigations in Nigeria and abroad.
Wednesday’s agreement ends a three-year legal battle in Britain over two spills in 2008 that destroyed thousands of hectares (acres) of mangroves and the fish and shellfish that sustained Bodo community.
According to their lawyers each member of the community affected by the spill is expected to get about N600,000.
Managing Director of Shell Nigeria, Mutiu Sunmonu while admitting that the spills were “deeply regrettable”, said “We’ve always wanted to compensate the community fairly and we are pleased to have reached agreement.”
Around £35 million of the money will go towards individuals who made a compensation claim for losses arising from the spills.
The rest will go towards the benefit of the whole Bodo community.