By Douglas Maha with agency report
Shell Plc transferred $5.34 billion to the Federal Government of Nigeria in 2024, making Africa’s top oil producer its largest sovereign beneficiary worldwide, even as the energy major retreats from onshore oil operations.
The figures, disclosed in Shell’s annual Payments to Governments report, show Nigeria ahead of traditional top recipients like Brazil, Oman, and Norway. The UK-headquartered company made total government payments of $28.1 billion globally last year.
Shell’s payments to Nigeria surged nearly 41% from 2023, driven largely by production entitlements and royalties tied to its upstream joint ventures. Over 70% of the sum—roughly $3.8 billion—was directed to Nigeria’s state oil company, NNPC Ltd.
While Shell continues to scale back its onshore oil operations amid operational risks and legacy environmental claims in the Niger Delta, its financial ties to Nigeria remain substantial. The company retains a strong deepwater presence, which it views as less carbon-intensive and more aligned with its energy transition plans.
By contrast, Shell received a $32 million refund from the UK government, mostly linked to decommissioning projects in the North Sea, underscoring a shift in capital flows from Europe to frontier markets.
WHERE THE MONEY WENT
According to the 2024 report, Shell’s financial obligations in Nigeria were spread across tax, regulatory, and development agencies:
- NNPC Ltd: $3.8 billion
- Federal Inland Revenue Service: $648.7 million
- Upstream Petroleum Regulatory Commission: $782 million
- Niger Delta Development Commission: $97.3 million
- Science and Engineering Infrastructure Agency (NASENI): $3.9 million
The East Asset, a core component of Shell’s production portfolio, accounted for $1.3 billion in payments. Other key assets, including OMLs 133, 135, 212, 118, and OPL 219, collectively drew $1.4 billion in remittances, reflecting their continued fiscal relevance.
