"Where's The Money": Shell Says it Paid $4.5 Billion in Taxes, Royalties to FG in 2022

• A report by Shell Petroleum Company Limited said it paid over $4 billion in taxes and royalties to the Nigerian government
• The breakdown of the payments indicates that the Nigerian government earned the amount via various taxes and contracts with the firm
• She said it had been consistently paying taxes and royalties to the Nigerian government in the past 25 years

According to Shell's report, the Nigerian government earned $4.5 billion from it in 2022.

The amount comprises the money paid as production entitlements, taxes, royalties, and fees in the past year.

The oil giant disclosed this in its sustainability, climate & energy transition, lobbying, and payments to governments report.

An analysis of the amount revealed that the firm, via the Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production Company, remitted $3.035 million as production entitlement, taxes $711.850 million, royalties $691.648 million and fees $81.63 million all amounting to $4.521 billion.

Other breakdowns of the payment indicate that money made through the Production Sharing Contract from OPL212/OML118, OPL219/OML135, as production entitlements to the Nigerian government were about $5339.313 million in taxes, $278.348 million in royalties, $480.566 million and fees amounting to $20.737 million, all totaling $1.318 billion.

The Guardian report says that production entitlement from the oil company's West Asset amounted to $1.783 billion, paid for PSC 1993 and OML133, amounting to $194.604 million.

The oil company's East Asset drew a production entitlement of $713.234 million, while other royalties, taxes, and fees by the firm amounted to $510.881 million.

The company said:

"Our operations generate revenue through taxes and royalties for governments worldwide. Governments often use these taxes and royalties to fund essential public services like education, transport, and healthcare.

"Since 2016, Shell has made mandatory disclosures under the UK's Reports on Payments to Governments Regulations 2014 (amended December 2015). We have voluntarily published the revenues that our operations generate through taxes and royalties since 2012. Being open about our tax payments helps people to understand how much we pay and why.

"Shell has been formally reporting on sustainability-related performance for more than 25 years, intending to be transparent about important activities to investors, governments, and civil society. The Shell Sustainability Report outlines our social, safety, and environmental performance in 2022 and our progress in transitioning our business to net-zero emissions.

Shell threatens to leave Nigeria over ‘major Issue’ FG can’t stop, which is affecting its revenue badly

Legit.ng earlier reported that Shell Petroleum Development Company of Nigeria Limited has raised an alarm that its revenue is threatened by the continuous crude oil theft in Nigeria.

According to Mr Osagie Okunbor, the company’s managing director and country chair for Shell Companies in Nigeria, this has resulted in two significant pipelines shutting, Businesspost reports.

Speaking at the just-concluded Nigeria Oil and Gas (NOG) Conference, he said oil theft was one of the reasons that Nigeria could not meet its quota of 1.8 million barrels a day instituted by the Organisation of the Petroleum Exporting Countries (OPEC) as it has recorded a constant drop in its production numbers.

Source: Legit.ng