₦airaland Forum

Energy major Shell Plc paid $5.34 billion to the Nigerian government in 2024, the largest amount it remitted to any country, even as it continues to divest from its onshore oil operations in Africa’s largest crude producer.

According to data released in Shell’s annual “Payments to Governments” report, a regulatory disclosure required under UK law, Nigeria topped the company’s global list of government recipients last year, ahead of countries such as Oman, Brazil and Norway.

The figure represents a sharp increase from the $3.8 billion Shell paid to Nigeria in 2023.

Breakdown of Shell’s 2024 payments to Nigeria
Shell’s total remittance of $5.34 billion to Nigeria in 2024 was disbursed across multiple federal institutions and agencies involved in petroleum revenue administration and regional development.

The largest share of over 71% went to the Nigerian National Petroleum Corporation (NNPC), amounting to $3.8 billion.

A breakdown of the payments is as follows:
Nigerian National Petroleum Corporation (NNPC): $3,804,949,166
Federal Inland Revenue Service (FIRS): $648,734,398
Nigerian Upstream Petroleum Regulatory Commission (NUPRC): $781,963,813
Niger Delta Development Commission (NDDC): $97,260,899
National Agency for Science and Engineering Infrastructure (NASENI): $3,931,917
The payments form part of the $28.1 billion Shell disbursed globally in 2024 to governments for extractive activities, a 5% year-on-year decline in total payouts that mirrored a broader drop in profitability.

According to the company’s 2024 report, $3.8 billion of the $5.34 billion remitted to Nigeria came from production entitlements — the government’s share of crude oil output under joint venture and production sharing contracts.

An additional $648.7 million was paid in taxes, while royalties accounted for $770.2 million. Fees and other statutory charges totalled approximately $102 million.

Project-level data show that the East Asset, one of Shell’s key production hubs, attracted the largest share of entitlements, with $1.3 billion in payments. Oil Mining Lease (OML) 133 accounted for $136.6 million, predominantly in taxes.

Meanwhile, a cluster of licences — OML 212, OML 118, OML 135, and Oil Prospecting Licence (OPL) 219 — together attracted $1.4 billion in payments across production entitlements, taxes, royalties, and fees, underlining the fiscal weight of Shell’s upstream footprint in Nigeria.

Comparative global payments
Beyond Nigeria, Shell also paid a total of $28 billion to Government where it operates

Oman received the next largest share after Nigeria, with about $4.3 billion,n while Brazil, Qatar and Norway received $4.5 billion, $3.33 billion and $3.38 billion, respectively
African Countries on the list received smaller amounts of with Egypt, Sao Tome and Principe, Tanzania and Tunisia getting $43 million, $1.3 million, $140k and $29.3 million only.
In contrast, Shell received a $32 million refund from the UK government, tied to decommissioning costs at the Brent field and other North Sea assets.
That figure was down from the $43 million refund received in 2023.

Revenue implications for Nigeria
Shell has operated in Nigeria for more than eight decades but is now exiting its onshore oil business following years of operational setbacks, community disputes, oil spills, and rising environmental liabilities in the Niger Delta.

The company has described its divestment strategy as a move to “simplify the portfolio” and support its long-term ambition to become a net-zero emissions energy company by 2050.

However, it has committed to retaining its deepwater oil and gas operations in Nigeria, which it considers more aligned with lower-carbon energy goals.

What you should know
In March 2025, the House of Representatives summoned 48 oil companies operating in Nigeria to appear before its Committee on Public Accounts, in a series of investigative hearings probing a combined debt of N9.4 trillion.

Companies summoned include major industry players such as Shell Nigeria Exploration and Production Company, Chevron Nigeria Ltd, Total E&P Nigeria, Seplat Energy, Oando Oil Ltd, and Mobil Producing Nigeria Unlimited, among others.
The committee’s probe follows findings in the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ending December 31, 2021.
Also in March this year, Nigeria Extractive Industries Transparency Initiative (NEITI) announced a review of divestments involving 26 oil blocks worth $6.03 billion by five International Oil Companies (IOCs), citing the need for transparency and due process in these transactions.
The transactions include significant deals such as Shell’s $2.4 billion sale to Renaissance, ExxonMobil’s $1.28 billion transfer to Seplat, and TotalEnergies’ $860 million sale to Chappal.

NEITI explained that these divestments were reshaping Nigeria’s oil and gas industry, making it crucial to ensure they are conducted transparently and in line with regulatory standards.

Bentacur007:
Where are those monies going to?
No impact at all
Fuel subsidy removed- No impact
Nigeria has cleared IMF debt- No impact

DryMouth:
What have the Nigerian govt done with these very huge money they got from chevron and shell?
Omo!

Nodogragra4me:
Where is the money?
That payment represents a sizeable percentage of our federation budget

Zocalite:
Country dey make money country people no see money. Fela
Remove all subsidy, increase taxes, increase tarrif, add more tarrif
Still nothing to show in the well-being of the citizens
Only the vampires and his cronies are swallowing the collective patrimony
Your end has come vampire, God has heard the cry of His elect
You can't turn the few elects to beggars
Just as pharoah perished so you shall perish too

DryMouth:
What have the Nigerian govt done with these very huge money they got from chevron and shell?
Omo!

Ernchibyke:
Omoh
Money dey this country o...

$5b in tax from shell...

We've not talked about how much is been realized from the exorbitant import duty, crude money, citizen tax etc...

We re not poor in country. We have enough to go round.
I just can't figure how Nigeria still is in a mess, give all this riches

Bentacur007:
Where are those monies going to?
No impact at all
Fuel subsidy removed- No impact
Nigeria has cleared IMF debt- No impact

bigpicture001:
U never talk of shevron, addax, seplat, etc...

treesun:
https://nairametrics.com/2025/05/16/shell-confirms-it-paid-nigeria-5-34bn-in-taxes-charges-in-2024-its-highest-government-payout-globally/

Bentacur007:
Where are those monies going to?
No impact at all
Fuel subsidy removed- No impact
Nigeria has cleared IMF debt- No impact

treesun:
https://nairametrics.com/2025/05/16/shell-confirms-it-paid-nigeria-5-34bn-in-taxes-charges-in-2024-its-highest-government-payout-globally/

anonimi:
World Bank offers Nigeria forex rate advice, as Tinubu eyes N200/Dollar rate

April 23, 2023

The President-elect said he would work with the Central Bank of Nigeria (CBN) to *bring down the exchange rate to N200 in his first term.*

“My administration will collaborate with the Central Bank to harmonize the fiscal and monetary policy to achieve immediate stabilization of the value of the naira against the US dollars and other currencies and in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.

“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years, Tinubu stated.

https://www.ripplesnigeria.com/world-bank-offers-nigeria-forex-rate-advice-as-tinubu-eyes-n200-dollar-rate/?amp

Ikaeniyan0:
The money the government paid back to IMF and other debtors nko? Nigerians traveling abroad for vacations, medical reasons and educational reasons, where do you think the dollars come from?

How about the oil importers, where do you think they source their dollar from? Where do you think Dangote get his dollars when he wants to import crude oil into Nigeria?