Nigeria Ranks Highest Recipient of Shell Payments Globally in 2024 at $5.34 Billion

• Shell has announced that Nigeria received the highest payments globally in royalties and other fees in 2024, amounting to $5.35 billion
• The amount is an increase from the $3.8 billion the company paid to Nigeria in 2023, which was distributed to several agencies of government
• Of the amount, the Nigerian National Petroleum Company Limited (NNPC) received about 71% of the payment at $3.8 billion

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria received about $5.34 billion from Shell in 2024, the highest payments the oil giant made to any country globally.

The amount is a massive increase from the $3.8 billion paid to Nigeria by Shell in 2023.

Shell’s payments are shared among government agencies

According to reports, Shell’s total payments globally last year amounted to $28.1 billion, a five per cent drop relative to the previous year, showing a broader decline in the firm’s profitability.

Shell’s Report on Payments to Governments in 2024 shows that the company paid about $5.34 billion to Nigeria and distributed it to several federal institutions and agencies responsible for petroleum revenue management and regional development.

Per the report, the payments included $3.80 billion in production entitlement, $648.7 million in taxes, $780.2 million in royalties, and $102.9 million in fees.

NNPC receives the highest amount

The New Telegraph reported that the Nigerian National Petroleum Company Limited (NNPC) received over 71% of the total payments, with $3.8 billion accruing to the state oil firm.

Other recipients are the Federal Inland Revenue Service (FIRS), with $648.7 million, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with $781,9 million, the Niger Delta Development Commission (NDDC) with $97.3 million, and the National Agency for Science and Engineering Infrastructure (NASENI) with $3.9 million.

Shell’s payments across regions

Reports say globally, Shell’s payments varied across regions and countries, with Oman receiving the second-largest payments after Nigeria.

Brazil came third with $3.7 billion, Norway with $3.38 billion, Qatar with $3.34 billion, and Malaysia with $3.12 billion.

In Europe, Germany got the highest payment with $244 million, Italy with $159 million, and the United Kingdom received a negative payment of -$5.2 million

Brunei emerged as the highest recipient in Asia with $56.9 million, China $10.3 million, and India had a negative payment of -$177 million, and Kazakhstan received $24.7 million, while in Oceania, Austria received $1.76 million.

According to the report, other African countries received smaller amounts, including Egypt, with $43 million, Sao Tome and Principe, with $1.3 million, and Tunisia, with $29.8 million.’

Shell’s payments in North America

In North America, Canada had the highest payment at $170 million, Mexico received $21.5 million, and the US received $1.32 million.

Others include Argentina in South America with $199 million, Brazil with $3.7 billion, Colombia with $490.000 and Trinidad and Tobago with $370 million.

The Shell’s report was published under the United Kingdom’s Reports on Payments to Governments 2024, and it provides a consolidated overview of the oil giant’s payments globally, ensuring transparency in extractive industry revenues.

Shell announces major investment in Nigeria’s oil industry

Legit.ng earlier reported that Shell has said that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), will invest in Bonga North, a deepwater project off the coast of Nigeria.

In a statement on Monday, December 16, 2024, the oil firm said that the Bonga North would be a subsea tie-back to its Bonga floating production storage and offloading (FPSO) facility.

It stated that the project involves drilling and starting 16 wells, modifications to the existing Bonga Main FPSO, and the installation of new hardware.

Source: Legit.ng