Shell’s $4.92 Billion Payments to Nigeria Lead Global Contributions in 2023

In 2023, Shell paid Nigeria a record $4.92 billion, comprising company income taxes, fees, royalties, and production entitlements, the highest amount paid by the oil giant to any government. This marked a $408 million increase from the previous year’s $4.52 billion. Shell’s global payments to governments totaled approximately $29.51 billion in 2023, with Oman and Norway following Nigeria as the second and third highest recipients, receiving $4.09 billion and $3.81 billion, respectively.

For Nigeria, Shell’s payments included $3.46 billion in production entitlement, $587.64 million in taxes, $727.85 million in royalties, and $146.09 million in fees. The payments were made to various government entities such as the Federal Inland Revenue Service (FIRS), the Nigeria National Petroleum Company Ltd (NNPCL), the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Niger Delta Development Commission (NDDC), the National Agency for Science and Engineering Infrastructure (NASENI), and the Nigeria Police Trust Fund.

The FIRS received $587.64 million as Company Income Tax (CIT) from five different production-sharing contracts and the Shell Petroleum Development Company of Nigeria Ltd. The NNPCL received the largest portion of the payment, $3.46 billion in production entitlements from six production-sharing contracts. The NUPRC received $727.85 million in royalties and $1.73 million in fees.

Shell’s long-standing presence in Nigeria has been marked by its involvement in oil exploration since the industry’s inception in the country. However, in 2024, the company announced a $1.3 billion deal with Renaissance Consortium to divest its onshore assets in Nigeria. This move has been met with criticism from communities, Civil Society Groups (CSOs), and rights groups due to Shell’s legacy of oil spills and environmental destruction in the Niger Delta. The proposed sales of its onshore assets to local operators are subject to approval from the NUPRC.

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