Shell Oil in Nigeria

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Shell Oil in Nigeria

1. What are some of the factors explaining why corruption and bribery are so high in Nigeria? Nigeria is considered to be one of the most corrupt countries in the world. Many different forms of corruption are familiar to Nigeria including political corruption, bureaucratic corruption, electoral corruption, embezzlement, and bribery. Corruption has even been said to be a viable enterprise in Nigeria due to the involvement of citizens, government officials, and private corporations alike. Two main factors help explain why corruption and bribery are so high in Nigeria, these factors include Nigeria’s complete dependence on the petroleum industry and profit-focused companies taking advantage of a less developed,
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It ignited world-wide protests and criticisms of the industry. Financially Shell was not burdened by the lawsuit, but the light that was shed on what was going on would ultimately cause Shell increase investment to the community. Today Shell makes efforts to contribute to small businesses and education in Nigeria.

3. Was Shell taking advantage of weak local regulation?

Shell was taking advantage of weak local regulation and using third party companies to funnel bribes to the Nigerian government. These bribes bought them many sources of preferential treatment including using government manpower to move ships, rigs, workboats, and other equipment throughout the country. Shell was also able to exploit the military and secured the use of military aircraft for quick movement of special goods. Bribes also allowed Shell to circumvent visa inspections and avoid having their employees deported for over-staying their visas. Many precautions were taken to cook the books and hide these bribes in case of an audit. One such precaution included drawing up fake invoices to create line items on the balance sheet to mask certain bribes. All of these actions taken by Shell are clear examples of how they took advantage of the weak government. A strong government with proper checks and balances would be much harder to manipulate. Bribery and other forms of corruption would be treated harshly in order to deter
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