Shell Nigeria Contributes $0.09 Billion in IRS Taxes and Royalties

Shell’s Financial Contributions to Nigeria in 2023

In a recent disclosure, energy giant Shell has revealed substantial financial contributions to the Nigerian government, underscoring its ongoing commitment to the country’s economic landscape. The 2023 Shell Briefing Notes highlighted that Shell, through its subsidiaries The Shell Petroleum Development Company of Nigeria Ltd (SPDC) and Shell Nigeria Exploration and Production Company of Nigeria Ltd (SNEPCo), has paid a combined total of $1.09 billion in corporate taxes and royalties to Nigeria.

Breaking down the payments, SPDC contributed $442 million, while SNEPCo accounted for $649 million. These figures represent a slight decrease from the $1.36 billion paid in the previous year. SPDC Managing Director and Country Chair for Shell Companies in Nigeria, Osagie Okunbor, clarified that these payments were exclusive to Shell and did not include contributions from their partners.

Okunbor emphasized the role of Shell in Nigeria’s economy, stating, “Shell Companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

With over six decades of investment in Nigeria, Shell remains dedicated to its operations within the country. The Briefing Notes report detailed the progress of various Shell entities in Nigeria, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power for the year 2023. These companies have been instrumental in fostering socio-economic development and providing cleaner energy solutions by working closely with stakeholders and communities.

Reaffirming Shell’s long-term presence in Nigeria, Mr. Okunbor stated, “It is important to emphasise 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. Our collective focus remains on delivery of safe operations and care for our people.”

The financial contributions by Shell reflect not only a significant investment in Nigeria’s economy but also a commitment to responsible corporate citizenship. As global attention on IRS taxes and compliance intensifies, multinational corporations like Shell play a pivotal role in setting standards for fiscal responsibility and transparency. The Internal Revenue Service (IRS) monitors such international transactions closely to ensure proper reporting and payment of IRS income tax obligations by global entities operating within the United States.