Shell has disclosed that it made a substantial financial contribution to Nigeria’s economy in 2023 by paying the Federal Government $1.09 billion in corporate taxes and royalties.
According to News Agency of Nigeria reports, Shell’s Media Relations Manager, Mrs. Abimbola Essien-Nelson, said this on Tuesday in Lagos.
Essien-Nelson emphasized that the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) and the Shell Nigeria Exploration and Production Company of Nigeria Ltd. (SNEPCo) were the two main subsidiaries that enabled these payments to be made.
She stated that SNEPCo sent $649 million and SPDC sent $442 million, indicating a significant financial contribution from both organizations. In contrast, comparable payments from these businesses came to a total of $1.36 billion in 2022.
“These payments are Shell exclusive and do not include those made by our partners,” said Osagie Okunbor, the country chair and managing director of Shell Companies in Nigeria.
Reiterating Shell’s commitment to promoting economic growth and aiding regional companies, Okunbor reaffirmed the company’s long-standing involvement in Nigeria, where it has made investments for more than 60 years.
Essien-Nelson went on to say that the 2023 Shell briefing notes offer a thorough rundown of the advancements made by the many Shell companies operating in Nigeria, such as SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power.
These publications highlight the companies’ coordinated efforts to promote stakeholder collaboration, accelerate socioeconomic development, and offer affordable, environmentally responsible energy solutions.
“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,” Okunbor said, highlighting Shell’s continued commitment to Nigeria’s energy sector.
He reaffirmed the company’s unshakable commitment to upholding safe operations and placing the welfare of its employees first.
The revelation by Shell of its substantial tax and royalty payments highlights the intricate relationship between corporate interests and governmental fiscal policies, while also reiterating the crucial role that multinational firms play in generating national revenue and promoting economic development.
Nigeria emerged as the biggest beneficiary of payments from the oil giant in 2023, according to the News Chronicles’ initial report. Shell played a significant role in the country’s revenue generation.
The data indicates that Nigeria was paid a large amount of about $4.92 billion by Shell, which included a range of financial elements such as corporate income taxes, fees, royalties, and production rights resulting from a variety of projects in the nation.
This noteworthy amount signified a substantial rise in payments of $408 million above the $4.52 billion that Shell had given Nigeria the year before.
Shell gave more than just money to Nigerian governments; in 2023, the corporation paid $29.51 billion in total to governments in 27 different nations. After Nigeria, Oman, and Norway came in second and third place with $4.09 billion and $3.81 billion in payments, respectively.
