In 2023, Nigeria saw its highest payments from Shell in the form of production entitlements, royalties, taxes, and fees to the government, totaling $4.92 billion, marking the highest figure recorded in four years.
Shell’s global payments to governments across 27 countries amounted to $29.51 billion in 2023.
Following Nigeria, Oman and Norway were the second and third highest recipients, receiving payments of $4.09 billion and $3.81 billion, respectively.
The payout to Nigeria increased by 8.85 percent compared to the previous year, representing 16.67 percent of the company’s total payments to 26 countries, according to new data released by Shell. Nigeria, Africa’s largest oil producer, regained its top position in payments after losing it to Norway in 2021.
In 2022, Nigeria had dropped to become the third-biggest recipient of payments from Shell, although the amount paid to it rose by 0.92 percent to $4.52 billion.
Shell’s payments to Nigeria had reached a peak of $6.39 billion in 2018 but declined to $5.63 billion in 2019 and $3.24 billion in 2020.
Shell’s payments to countries where it operates declined by 14.11 percent year-on-year to $29.52 billion in 2023 as its annual profit dropped by 30 percent compared to its highest-ever earnings of $39.9 billion in 2022.
According to its latest report, payments made to governments arose from activities involving the exploration, discovery, development, and extraction of minerals, oil, and natural gas deposits.
In Nigeria, Shell’s subsidiaries paid $3.46 billion to the Nigerian National Petroleum Company (NNPC) as production entitlements, with $587.64 million in taxes paid to the Federal Inland Revenue Service.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received about $727.85 million, while royalties and fees amounted to $1.73 million. Additionally, $139.99 million was remitted to the Niger Delta Development Commission.
Shell also made payments of $4.28 million to the National Agency for Science and Engineering Infrastructure and $85,890 to the Nigeria Police Trust Fund.
Earlier in the year, Shell Nigeria reportedly sold its onshore oil business for $2.4 billion. However, the company emphasized its continued presence in Africa’s largest market despite the divestment from its onshore operations in the Niger Delta.
