“$2 BILLION TO NIGERIA: SHELL PAYS HIGHEST GOVERNMENT BILL IN AFRICA FOR 2025”
GREATRIBUNETVNEWS–OIL major’s taxes, royalties and fees dwarf combined payments to four other African countries
Key Issues:
1. Nigeria Tops Shell’s African Payments for 2025
_”Oil major Shell said it paid Nigerian government $2,016,386,431 in 2025, which is the highest in Africa.”
_”Out of five countries in Africa – Egypt, Nigeria, Sao Tome & Principe, Tanzania and Tunisia that their governments received such payments, Nigeria got the highest.”
2. Payments Cover Taxes, Fees, Royalties and Production Entitlements
_”In its 2025 report on payments to governments published on Thursday, Shell said the payments were taxes, fees, production entitlements and royalties that accrued to the government from its operations in 2025 in Nigeria.”
3. Nigeria’s Share Dwarfs Other African Countries Combined
_”The total payments to the five countries amounted to $2,183,046,055. A breakdown shows that Egypt got $161,447,870; Sao Tome & Principe got $200,000; Tanzania – $142,811 and Tunisia – $4,868,943.”
_”The four African countries got a total of $166,659,624, which is far less than what Nigerian government received.”
4. Breakdown Shows Major Payments to NNPC, NUPRC and FIRS
_”Shell paid $236,994,532 in taxes to the Federal Inland Revenue Service (FIRS) now Nigeria Revenue Service (NRS), National Agency for Science and Engineering Infrastructure – $2,397,000 in fees, Niger Delta Development Commission (NDDC) received $85,498,758 in fees, Nigerian National Petroleum Company Limited received $1,237,467,592 in production entitlements, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) got $454,028,549 in royalties.”
_”These payments derived from Shell’s East and West assets in OML 144, PSC 1993 (OPL 209/OML133), PSC 1993 (OPL212/OML118, and OPL/219/OML135).”
The report showed that the 2025 payments to governments details payments in 26 countries where Shell has upstream operations, including the basis of reporting and a breakdown by country. This is the eleventh report issued by Shell under regulations, it added.
The report noted that Shell has a taxable presence in more than 90 countries and, in 2025, paid a total of $17 billion in taxes to governments, of which $12 billion was paid in corporate income taxes and $5 billion in government royalties and production taxes.
Shell, however, stated that in line with the regulations, this report only covers extractive activities and payments equal to or above the £86,000 or equivalent materiality threshold, resulting in payments made to governments in 26 countries being included.
Commenting of the report, Shell’s Chief Financial Officer, Sinead Gorman, said: “Shell is transparent about the taxes we pay, and we encourage governments to join the EITI and share contracts and licenses in line with the EITI’s standard. With respect to beneficial ownership transparency, we perform risk-based due diligence in relation to companies that we do business with, seeking to comply with all applicable laws and regulations of the countries in which we operate, in line with the Shell General Business Principles.”
Shell has operated in Nigeria for over 60 years.
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