Power main Shell Plc paid $5.34 billion to the Nigerian authorities in 2024, the biggest quantity it remitted to any nation, even because it continues to divest from its onshore oil operations in Africa’s largest crude producer.
Based on information launched in Shell’s annual “Funds to Governments” report, a regulatory disclosure required below UK legislation, Nigeria topped the corporate’s world record of presidency recipients final 12 months, forward of nations corresponding to Oman, Brazil and Norway.
The determine represents a pointy improve from the $3.8 billion Shell paid to Nigeria in 2023.
Breakdown of Shell’s 2024 funds to Nigeria
Shell’s complete remittance of $5.34 billion to Nigeria in 2024 was disbursed throughout a number of federal establishments and companies concerned in petroleum income administration and regional growth.
The biggest share of over 71% went to the Nigerian Nationwide Petroleum Company (NNPC), amounting to $3.8 billion.
A breakdown of the funds is as follows:
- Nigerian Nationwide Petroleum Company (NNPC): $3,804,949,166
- Federal Inland Income Service (FIRS): $648,734,398
- Nigerian Upstream Petroleum Regulatory Fee (NUPRC): $781,963,813
- Niger Delta Growth Fee (NDDC): $97,260,899
- Nationwide Company for Science and Engineering Infrastructure (NASENI): $3,931,917
The funds kind a part of the $28.1 billion Shell disbursed globally in 2024 to governments for extractive actions, a 5% year-on-year decline in complete payouts that mirrored a broader drop in profitability.
- Based on the corporate’s 2024 report, $3.8 billion of the $5.34 billion remitted to Nigeria got here from manufacturing entitlements — the federal government’s share of crude oil output below three way partnership and manufacturing sharing contracts.
- An extra $648.7 million was paid in taxes, whereas royalties accounted for $770.2 million. Charges and different statutory costs totalled roughly $102 million.
- Undertaking-level information present that the East Asset, certainly one of Shell’s key manufacturing hubs, attracted the biggest share of entitlements, with $1.3 billion in funds. Oil Mining Lease (OML) 133 accounted for $136.6 million, predominantly in taxes.
- In the meantime, a cluster of licences — OML 212, OML 118, OML 135, and Oil Prospecting Licence (OPL) 219 — collectively attracted $1.4 billion in funds throughout manufacturing entitlements, taxes, royalties, and charges, underlining the fiscal weight of Shell’s upstream footprint in Nigeria.
Comparative world funds
Past Nigeria, Shell additionally paid a complete of $28 billion to Authorities the place it operates
- Oman obtained the following largest share after Nigeria, with about $4.3 billion,n whereas Brazil, Qatar and Norway obtained $4.5 billion, $3.33 billion and $3.38 billion, respectively
- African Nations on the record obtained smaller quantities of with Egypt, Sao Tome and Principe, Tanzania and Tunisia getting $43 million, $1.3 million, $140k and $29.3 million solely.
- In distinction, Shell obtained a $32 million refund from the UK authorities, tied to decommissioning prices on the Brent subject and different North Sea property.
That determine was down from the $43 million refund obtained in 2023.
Income implications for Nigeria
Shell has operated in Nigeria for greater than eight a long time however is now exiting its onshore oil enterprise following years of operational setbacks, neighborhood disputes, oil spills, and rising environmental liabilities within the Niger Delta.
The corporate has described its divestment technique as a transfer to “simplify the portfolio” and assist its long-term ambition to turn out to be a net-zero emissions vitality firm by 2050.
Nevertheless, it has dedicated to retaining its deepwater oil and fuel operations in Nigeria, which it considers extra aligned with lower-carbon vitality targets.
What it is best to know
In March 2025, the Home of Representatives summoned 48 oil firms working in Nigeria to seem earlier than its Committee on Public Accounts, in a sequence of investigative hearings probing a mixed debt of N9.4 trillion.
- Firms summoned embody main trade gamers corresponding to Shell Nigeria Exploration and Manufacturing Firm, Chevron Nigeria Ltd, Whole E&P Nigeria, Seplat Power, Oando Oil Ltd, and Mobil Producing Nigeria Limitless, amongst others.
- The committee’s probe follows findings within the Auditor-Normal’s Annual Report on the Consolidated Monetary Assertion for the 12 months ending December 31, 2021.
- Additionally in March this 12 months, Nigeria Extractive Industries Transparency Initiative (NEITI) introduced a evaluation of divestments involving 26 oil blocks price $6.03 billion by 5 Worldwide Oil Firms (IOCs), citing the necessity for transparency and due course of in these transactions.
The transactions embody vital offers corresponding to Shell’s $2.4 billion sale to Renaissance, ExxonMobil’s $1.28 billion switch to Seplat, and TotalEnergies’ $860 million sale to Chappal.
NEITI defined that these divestments had been reshaping Nigeria’s oil and fuel trade, making it essential to make sure they’re performed transparently and in step with regulatory requirements.
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