Shell petroleum Development Company of Nigeria on Monday said the sum of $42bn was paid to the federal government as economic contribution to the joint venture partners from 2011 to 2015 and the sum of $4.95bn to the Nigerian government last year as production entitlement, taxes, royalties and fees.
Shell’s ‘Report on Payments to Governments for 2015’ showed that Nigeria received the biggest share of payments from the company out of 24 countries. It was followed by Malaysia, which received $4.41bn; Norway, $4.16bn; Philippines, $2.11bn, and Iraq, $1.36bn.
According to Shell, the Nigerian National Petroleum Corporation was paid $3.61bn for production entitlement, while the Department of Petroleum Resources was paid $378.5m and $200.6m for royalties and fees, respectively.The oil giant paid $717.9m to the Federal Inland Revenue Service as taxes; $291,115 to the Federation Account with the Central Bank of Nigeria as fees; and $46.9m to the Niger Delta Development Commission as fees.
In its Sustainability Report 2015 released on Monday, April 18, 2016, said its share of royalties and corporate taxes paid to the Nigerian government in 2015 was $1.1bn (SPDC $0.6bn; and Shell Nigeria Exploration and Production Company, $0.5bn). While 93 per cent of contracts by Shell Companies in Nigeria were awarded to indigenous companies, with $0.9bn spent on local contracting and procurement.
The Chief Financial Officer, Royal Dutch Shell, Simon Henry, said by fulfilling the mandatory disclosures in line with the new United Kingdom legislative requirements, the firm had demonstrated that the extraction of natural resources could lead to the opportunity of government revenue, economic growth and social development.
“Revenue transparency provides citizens with an important tool to hold their government representatives accountable and to advance good governance. Shell is committed to transparency as it builds trust,” Henry said.
