Shell pays Nigerian government, agencies $6.397bn

Shell managing director Osagie Okunbor

Over $6.397 billion was paid to the Nigerian government and its agencies in 2018 by Shell exploration and production companies in Nigeria.

The companies comprise Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo).

The payment represents a 48 per cent increase over payments by the companies to Nigerian government in 2017 which was $4.322 billion.

The payments also formed part of four documents released on Tuesday by the Group chief executive officer of Royal Dutch Shell, Ben Van Beurden, to signal the global oil giant’s renewed commitment to greater transparency.

The documents are: Shell sustainability report; industry associations’ climate review; Nigeria briefing notes; and payments to government report.

“Shell must remain at the forefront of the drive for greater corporate transparency. We will continue to be more open about what we do and why we do it,” said van Beurden.

“We want to help people better understand Shell’s performance, values and principles. These reports outline our approach and activities in the crucial areas of sustainability and our relationships with industry associations and governments,” he added.

In the breakdown of 2018 payments, Shell companies paid $3.776 billion to Nigeria National Petroleum Corporation (NNPC) as production entitlement while $1.286 billion was paid in taxes to the Federal Inland Revenue Service (FIRS).

Another $1.253 went to the Department of Petroleum Resources (DPR) for royalties and fees, while $81.5 million was remitted to Niger Delta Development Commission (NDDC).

SPDC managing director and chair of Shell Companies in Nigeria, Osagie Okunbor, described the reports as a further testament to Shell’s efforts to increase transparency around activities that are important to investors, governments and civil society. 

“We are irrevocably committed to transparency just as we are to business integrity part of our core values and central tenets of the Business Principles that govern the way we do business,” he said.