Many Nigerian organizations oppose the World Bank Group's partnership with Shell, citing Shell's long record of human rights abuse and environmental degradation. They argue that there was insufficient public consultation on the need for and design of the credit facility and that the project will not have a positive development impact. These organizations express concern that, because the IFC is channeling its money through a local bank rather than providing direct loans to contractors, the projects funded by the Facility are largely exempt from compliance with the IFC's social and environmental safeguards.
The Call for Accountability
Organizations from the Niger Delta filed a formal complaint with the IFC's Compliance Advisor/Ombudsman and requested that the project be delayed until further consultations were held. The IFC proceeded with the project despite the complaint. The IFC has proposed a number of measures designed to improve monitoring processes and loan eligibility criteria to better target credits to local beneficiaries, but many local organizations have expressed concerns that these measures are both too little and too late. The credit facility began accepting applications in mid-2003 but as of October 2003, no funds had been disbursed.