The Federal Government of Nigeria received the sum of $6.3 billion from Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo) in 2018.
The money, which was paid to the Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) etc, represents tax and production entitlement for the 2018 fiscal year.
The payment signifies a 48 per cent increase – The payments signify a 48 percent increase from the N1.5 trillion Nigeria earned in 2017, making it the second time in two years that Nigeria is grossing the largest revenues from the company.
It formed part of Shell’s Sustainability report – The payment formed part of Shell’s Sustainability report which was released on Tuesday by the Group Chief Executive Officer of the Royal Dutch Shell, Ben Van Beurden.
“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. 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.”
Analysis of the payment
NNPC – The Nigerian National Petroleum Corporation (NNPC) received the lion’s share with payments in kind valued at $3.776 billion.
FIRS and DPR – Next in line was the FIRS which received $1.286 billion in taxes, while the DPR received $1.253 billion from royalties and fees.
NDDC – The Niger Delta Development Commission (NDDC) was paid fees totaling $81.5 million.
About Shell’s Sustainability report
The Shell Sustainability Report outlines Shell’s approach to sustainability and covers its social, safety and environmental performance in 2018.
It sets out how Shell is playing a role in the transition to a lower-carbon world and its contribution to society, which includes helping to achieve universal access to cleaner, and affordable energy.
Contents of the Sustainability report – Contents of the report include the Industry Associations Climate Review, Nigeria Briefing Notes, and Payments to Government Report.