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ARTICLE · 27 JUNE 2025

Shell v. Minister Of Petroleum Resources: Matters Arising

Balogun Harold Legal
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This case review offers some evaluation of the court's reasoning in Shell Petroleum Development Company Ltd v. Minister of Petroleum Resources in light of constitutional and administrative law principles.

NigeriaEnergy and Natural Resources
Olubunmi Abayomi-Olukunle
Olubunmi Abayomi-Olukunle
Adekunle Adewale
Adekunle Adewale

This case review offers some evaluation of the court's reasoning in Shell Petroleum Development Company Ltd v. Minister of Petroleum Resources in light of constitutional and administrative law principles. Our conclusion is that the "Fairness Test", which appears to the rationale for the Guidelines for the Release of Staff in the Oil and Gas Industry is best evaluated by the National Industrial Court (the "NICN/Court") and that the NICN ought to guard its jurisdiction jealously.

Background

By virtue of the 2019 Guidelines for the Release of Staff in the Oil and Gas Industry, employee termination in the Nigerian Oil & Gas industry, (the "Guideline") is legally valid only after obtaining regulatory approval, which scrutinizes reasons and compensation. This Guideline has been the subject of litigation. In the latest judicial matter, the Court upheld the Guideline as binding on employers in the Nigerian Oil & Gas Industry.

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