• Thursday, November 14, 2024
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Shell paid Nigerian government $3.2bn in taxes, royalties, fees in 2020

Royal Dutch Shell announces potential name change to Shell Plc

According to the report released by the company on Monday, Carrying the Royal designation has been a source of immense pride and honour for Shell for more than 130 years.

Royal Dutch Shell, the parent company of the Nigerian subsidiary Shell Petroleum Development Company (SPDC) of Nigeria Limited, says it paid a total of about $3.2 billion to the Nigerian government in 2020, according to its latest sustainability report released on Wednesday.

The payment is the largest payout from a total $13.1 billion the company said it made to about 24 host-governments covering countries where it has exploration and production activities around the world.

A further breakdown of the 2020 payment of $3.2 billion showed $2.2 billion was Nigeria’s production entitlements as part of its joint venture obligations to its Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC).

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Others include $440 million as company income tax (CIT) and other taxes it said it paid to the Federal Inland Revenue Service (FIRS), as well as about $446.4 million to the Department of Petroleum Resources (DPR) in royalties.

It further paid the Niger Delta Development Commission (NNDC) $73.4 million and paid the DPR another $4.5 million as fees.

The closest rivals to the $3.2 billion Nigeria received were payments the company said it also made to Malaysia ($2.2 billion) and Norway ($1.7 billion).

The total payment of $3.2 billion made to Nigerian government in 2020 was 42 percent lower compared to the $5.2 billion paid in the corresponding period last year.

In his introduction to the report, Shell Chief Executive Officer Ben van Beurden acknowledged the current global economic crisis as a result of the ravaging impact of the deadly coronavirus pandemic on the world.

In 2020, Shell said it paid more than $13.1 billion to various governments around the world, with $6.9 billion paid in production entitlements and $2.7 billion paid as taxes.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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