The main beneficiaries of the payment would be the Ijaw ethnic group which, according to a senate document, has suffered "severe health hazards, economic hardship, injurious affection, avoidable deaths and sundry maladies" from oil spills at Shell facilities.

The Nigerian Senate demand follows a petition by the Ijaw tribe that was originally presented to the lower House of Representatives and reviewed by an independent legal advisory panel. The Senate resolution calls for a $1 billion up-front payment and a further $500m in instalments over the next five years.

Shell has been under fire in Nigeria for many years over its environmental record, which has been made worse by sabotage in the politically turbulent south of the country.