During the years 2022 and 2023, the Nigerian government collected corporate taxes and royalties totaling $1.36 billion and $1.09 billion, respectively, from Shell Nigeria’s operations conducted through Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company of Nigeria Limited.
The details were revealed in the 2023 Shell Briefing Notes recently published by the company, according to a statement by Abimbola Essien-Nelson, the firm’s Media Relations Manager.
Further breakdown showed that SPDC paid $442 million, while SNEPCo remitted $649 million in taxes in 2023 alone to the Nigerian government.
However, there was a $27 billion decrease in tax remittances in 2023 compared to the previous year.
“These payments are solely from Shell and do not include contributions made by our partners,” stated Osagie Okunbor, the SPDC Managing Director and Country Chair of Shell Companies in Nigeria, emphasizing the company’s commitment to Deepwater and Integrated Gas investments in Nigeria.
This development follows Shell Nigeria’s announcement in January 2024 of its decision to withdraw from onshore oil production activities in Nigeria.