More than $1.3b paid to Nigeria annually – Shell

By Ologeh Joseph Chibu

Shell Petroleum says more than $1.3B paid to Nigeria annually.

Shell Petroleum has said that it paid some $1.3b to the Nigerian Federal Government in 2022 alone.

The payment was in corporate tax and royalties. The company also said it paid $80m to the Niger Delta Development Commission, (NDDC) in the same year.

Investigations by Irohinoodua indicated that funds paid to the Nigerian government by Shell in subsequent years from 2022 are higher than the $1.36b paid in 2022.
It is uncertain if Nigeria, a country riddled with corruption makes the best use of such funds.

An official of Nigerian Human Rights Community, NHRC Taiwo Adeleye said Shell is far from meeting her obligations to Nigerians even in the face of such billions of dollars the company claimed to have paid to the Government and other interests.

The company also said it paid $106.3m to communities in oil producing areas in 2017 alone while it has invested $34.29m in direct social investment

Shell also said 97% of its employers are Nigerians while 10,000 contractors are engaged by the oil outfit

There have been grave concerns about Shell corporate responsibility. Many oil producing communities feel shortchanged by Shell records of pollution and exclusion from gainful employment.

Some analysts think what Shell gives for Nigeria is peanuts compared with what she makes annually.

The partnership between a multinational corporation and a nation’s progress began back in 1936 when The Royal Dutch Shell plc, later renamed Shell plc in January 2022, established in Nigeria. It was the dawn of an era that forever changed the landscape and the lives of the Nigerian people
In 1936, Shell founded Shell D’Arcy, which would be the first Shell Company in Nigeria. Just a year later, in 1937, the Shell Petroleum Development Company of Nigeria (SPDC) came into existence, further cementing Shell’s commitment to the nation. The significance of this relationship would only grow stronger with time.

The real turning point came on February 24, 1993, when Shell Nigeria Exploration and Production Company (SNEPCO) was formed. This was a company wholly owned by Shell, tasked with a crucial mission – to develop Nigeria’s deep-water oil and gas resources offshore. It marked a new chapter in Nigeria’s energy industry and, in turn, its economy.

Shell says the benefits of this partnership were far-reaching.

It claimed that n 2022, Shell paid a remarkable $1.36 billion in corporate taxes and royalties to the Federal Government of Nigeria. These funds flowed into government coffers, supporting vital programs, building infrastructure, and fueling the nation’s development, according to Shell in a well publicised media piece on Thursday.

Beyond the traditional financial contributions, Shell made substantial contributions to the welfare of Nigeria’s communities. In 2022, Shell disbursed $79.77 million through SPDC and SNEPCO to the Niger Delta Development Commission (NDDC). These funds were a lifeline for projects aimed at improving the lives of people in the Niger Delta region, where oil and gas operations have played a significant role in the nation’s history.

Shell’s impact was felt not only at the national level but also at the grassroots. With a dedicated workforce of 2,500 employees, an impressive 97% of whom were Nigerian nationals, the company not only provided employment opportunities but also nurtured local expertise. To further expand its impact, Shell engaged approximately 10,000 contractors, offering support to its vast operations across Nigeria.

The support didn’t end with employment. In 2022, Shell awarded a staggering $1.9 billion in contracts to Nigerian registered companies. These contracts became lifelines for these local businesses, fostering growth, creating more jobs, and contributing to the nation’s economic prosperity.

The people of Nigeria benefited directly from Shell’s involvement as well. Through the SPDC Joint Venture (JV), Shell disbursed $106.3 million to communities since 2017 via Global Memoranda of Understanding (GMOUs). These funds fueled community development initiatives, improved infrastructure, and raised the overall quality of life for those in the regions surrounding Shell’s operations.

Education, as always, was a cornerstone of progress. Recognizing this, Shell dedicated $15 million to educational infrastructure projects in Lagos and Bayelsa states. These initiatives didn’t just build schools and colleges; they laid the foundation for a brighter future for Nigeria’s youth. They created opportunities for personal development, fostering a skilled workforce and promoting prosperity.

Shell’s involvement in Nigeria is more than a corporate story; it’s a story of commitment, collaboration, and the betterment of a nation. It’s a testament to what can be achieved when a corporation dedicates itself to the growth and well-being of a country and its people. It’s a partnership that will continue to shape the future of Nigeria for generations to come.

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