Shell contributes $1.1bn to FG in 2015

Shell companies in the country contributed $1.1billion  (N220bn) the Federal Government in the fiscal year 2015 according to its annual report

The company however said in the period between 2011 and 2015 it has contributed a total a total of N8.4 trillion ($42bn) to the economy.

“Nigeria depends on the oil and gas industry for approximately 90 per cent of export income and 75 per cent of overall government income. The economic contribution from SPDC JV partners to the Nigerian government between 2011 and 2015 was $42bn. The Shell share of royalties and corporate taxes paid to the Nigerian government in 2015 was approximately $1.1bn,” the report noted.

Shell said its ventures in Nigeria in 2015 produced an average of 688,000 barrels of oil equivalent per day with 496,000 from the SPDC and 192,000 per day from Shell Nigeria Exploration and Production Company limited (SNEPCO).

It said Shell Nigeria Gas limited (SNG) supplies natural gas to 87 industrial customers and that SPDC remains the supplier of gas to the Nigeria liquefied Natural Gas (NLNG).

The report said its Afam VI power plant with 650 megawatt generating capacity supplied approximately 14 per cent of the nation’s grid-connected electricity in 2015 and has delivered 20 million megawatts-hour (MWh) of electricity into the Nigerian grid  since its inauguration in 2008.

The United Nations Framework Convention on Climate (UNFCC) it said  issued approximately 542,000 Certified Emission Reductions (CER) credit to the Afam VI power plant in 2015. “This makes the plant the first energy efficiency project on power generation registered from Nigeria and also the first UN registered Clean Development Mechanism (CDM) initiative in the Shell Group”.

The report maintained that Nigeria is one of the biggest oil and gas producers in Sub-Sahara Africa  and has the continent’s largest natural gas reserves.

The company  stated that it has become an is an economic and political imperative for  the country  to make the most of  her energy resources by taking specific actions  because of its huge and growing populations which is put between 165 and 170 millions.

The United Nations predicts that Nigeria could have the world’s fourth largest population by 20130.

Shell’s  companies in Nigeria make major contribution to developing the country’s human capital and contracting capacity as about 93 per cent of their contracts were awarded to indigenous companies in 2015.

The use of locally manufactured goods and Nigerian service companies creates jobs in the communities where it operates. In 2015, the company s spent $0.9Bn or almost N200bn on local contracting and procurement.

Ignatius Chukwu