Key points
- Shell Companies in Nigeria awarded contracts worth $518 million to 123 indigenous companies in 2025.
- Shell says the contracts reflect its long-term commitment to developing Nigerian content.
- SNEPCo launched a $3 billion contract finance facility with nine Nigerian banks to support local contractors.
- Shell also paid about $2.016 billion to the Nigerian Government in royalties, taxes and other statutory obligations.
Main story
Shell Companies in Nigeria awarded contracts valued at $518 million to 123 indigenous companies in 2025 as part of efforts to strengthen local participation in the country’s oil and gas industry.
The company’s Communications Manager, Mrs Gladys Afam-Anadu, said the contracts covered businesses operating across Shell’s operations and value chain, reinforcing its commitment to Nigerian content development.
According to Shell’s Vice President, Commercial, Mr Rohan D’Souza, the company considers the growth of indigenous businesses a long-term investment that delivers value to both Shell and the wider economy, rather than simply meeting regulatory requirements.
He said Nigerian companies continue to provide technical, logistics and other specialised services across Shell’s operations while benefiting from the company’s capacity-building programmes.
D’Souza also highlighted the recent launch of a $3 billion contract finance facility established by Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) in partnership with nine Nigerian banks.
He said the facility would provide financing in both naira and U.S. dollars to improve indigenous contractors’ access to capital and support the execution of projects awarded by SNEPCo.
The Shell executive further disclosed that the company paid approximately $2.016 billion to the Nigerian Government in 2025 through production entitlements, royalties, taxes and other statutory payments.
He said the payments reflected Shell’s longstanding contribution to Nigeria’s economy through more than 60 years of operations in the country.
The issues
Expanding local content remains a major objective of Nigeria’s oil and gas industry. Improved access to financing and greater participation of indigenous companies are expected to strengthen local capacity, create jobs and retain more value within the domestic economy.
What’s being said
“We see the development of indigenous companies as more than regulatory compliance. It is a long-term strategy that creates mutual value.” — Rohan D’Souza, Vice President, Commercial, Shell Companies in Nigeria
What’s next
Shell is expected to continue implementing its local content strategy, while the new financing facility is expected to improve indigenous contractors’ ability to execute major oil and gas projects.
Bottom line
Shell’s award of $518 million in contracts to Nigerian firms and the launch of a $3 billion financing facility underscore growing efforts to deepen indigenous participation in the country’s oil and gas industry.
