Shell Tops Global Payout List with $5.34bn to Nigeria in 2024

Samuel Mobolaji

Shell Plc has confirmed that it paid a total of $5.34 billion to the Nigerian government in 2024, its highest payment to any country during the year, surpassing remittances to oil-rich nations such as Oman, Brazil, and Norway.

This disclosure was contained in Shell’s 2024 “Payments to Governments” report, a mandatory regulatory filing under UK law. The figure represents a significant increase from the $3.8 billion Shell paid to Nigeria in 2023 and underscores the enduring fiscal importance of Shell’s operations in the country, even as the company continues to exit its onshore assets.

According to the breakdown, the largest share — over 71 per cent — went to the Nigerian National Petroleum Corporation (NNPC), which received $3.8 billion. The Federal Inland Revenue Service (FIRS) collected $648.7 million, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received $782 million. Other recipients included the Niger Delta Development Commission (NDDC) with $97.3 million and the National Agency for Science and Engineering Infrastructure (NASENI) with $3.9 million.

Shell said the payments were part of a broader $28.1 billion disbursed globally in 2024 for extractive activities, a 5 per cent decline from 2023, reflecting lower profitability across markets. Of the $5.34 billion paid to Nigeria, $3.8 billion came from production entitlements — the government’s share under joint venture and production-sharing contracts — while taxes accounted for $648.7 million, royalties for $770.2 million, and fees and other charges made up roughly $102 million.

Shell’s East Asset, one of its largest Nigerian production hubs, attracted the biggest share of entitlements with $1.3 billion in payments. Licences such as OML 133, OMLs 212, 118, and 135, along with OPL 219, collectively drew more than $1.4 billion in total payments, highlighting the fiscal weight of Shell’s upstream footprint in Nigeria.

Globally, Shell’s payments to Nigeria were followed by disbursements of $4.5 billion to Brazil, $4.3 billion to Oman, $3.38 billion to Norway, and $3.33 billion to Qatar. In contrast, Shell received a $32 million refund from the UK government, mainly related to decommissioning costs at North Sea assets, slightly down from the $43 million it received in 2023.

Despite divesting from onshore operations, Shell has reaffirmed its commitment to Nigeria’s deepwater oil and gas sector, which it sees as more aligned with its net-zero carbon ambitions. The company’s shift is also part of a broader strategy to simplify its global portfolio while reducing environmental liabilities associated with onshore activity in the Niger Delta.