Shell’s Fiscal Contributions to Nigeria in 2023
In a recent disclosure, Shell has made known its considerable financial input into Nigeria’s economy, with corporate taxes and royalties paid to the Federal Government amounting to $1.09 billion in 2023. The announcement was made by Shell’s Media Relations Manager, Mrs. Abimbola Essien-Nelson, in Lagos, following reports by the News Agency of Nigeria.
The payments were channeled through Shell’s two principal subsidiaries in the country, the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) and the Shell Nigeria Exploration and Production Company of Nigeria Ltd. (SNEPCo). SPDC’s contribution stood at $442 million, while SNEPCo accounted for $649 million. This fiscal input is slightly lower than the $1.36 billion remitted in 2022 by these companies.
Osagie Okunbor, Managing Director and Country Chair of Shell Companies in Nigeria, emphasized that these tax and royalty payments are exclusive to Shell and do not include those made by its partners. He also reaffirmed Shell’s commitment to Nigeria’s economic growth and support for local businesses, a commitment that has spanned over 60 years.
Essien-Nelson provided further details on the 2023 Shell briefing notes, which outline the advancements made by various Shell subsidiaries in Nigeria. These reports highlight efforts to promote socio-economic development, stakeholder collaboration, and the delivery of cost-effective, environmentally friendly energy solutions.
Okunbor reassured stakeholders of Shell’s ongoing commitment to Nigeria’s energy sector, stating, “It is important to emphasize that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses.” He also stressed the importance of safe operations and the well-being of their workforce.
Nairametrics reported that Nigeria emerged as the top recipient of payments from Shell in 2023, with approximately $4.92 billion received. This figure includes company income taxes, fees, royalties, and production entitlements from various projects within the country, marking a $408 million increase from the previous year. Globally, Shell’s total payments to governments across 27 countries amounted to roughly $29.51 billion in 2023.
In alignment with its strategic goals, Shell Plc had agreed to divest its Nigerian onshore oil assets to a local consortium for over $1.3 billion, subject to government approval. Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, underscored the deal’s significance as part of the company’s strategy to focus on deepwater and integrated gas ventures in Nigeria.
