Shell Plc paid a record $5.34 billion to the Nigerian government in 2024, the highest amount the energy giant has remitted to any country globally, despite ongoing efforts to divest from its onshore oil operations in Africa’s top crude producer.
The figure, disclosed in the company’s annual Payments to Governments report, represents a 41% increase from the $3.8 billion paid in 2023 and is part of the $28.1 billion the company disbursed to governments worldwide for extractive activities.
“Nigeria remains a key part of our global portfolio, especially in deepwater operations,” it stated.
Nigeria Tops Shell’s Global Government Payout List
Nigeria received more government revenue from Shell than major energy-producing nations such as Oman ($4.3 billion), Brazil ($4.5 billion), Qatar ($3.33 billion), and Norway ($3.38 billion).
In contrast, the UK government paid Shell a $32 million refund related to decommissioning costs in the North Sea, down from $43 million the previous year.
Other African countries, such as Egypt ($43 million), São Tomé and Príncipe ($1.3 million), Tanzania ($140,000), and Tunisia ($29.3 million), received relatively modest sums.
Where the $5.34 billion went
Over 71% of Shell’s Nigerian payments, totalling $3.8 billion, went to the Nigerian National Petroleum Corporation (NNPC) as production entitlements.
A detailed breakdown of Shell’s payments includes:
- NNPC: $3.80 billion
- Federal Inland Revenue Service (FIRS): $648.7 million
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC): $782 million
- Niger Delta Development Commission (NDDC): $97.3 million
- National Agency for Science and Engineering Infrastructure (NASENI): $3.9 million
The payments comprise $3.8 billion in production entitlements, $648.7 million in taxes, $770.2 million in royalties, and $102 million in fees and statutory charges.
Nigeria’s Oil Fields Still a Major Revenue Source
Shell’s East Asset alone attracted $1.3 billion, making it the most significant project-level contributor. Oil Mining Lease (OML) 133 drew $136.6 million, mainly from taxes.
Licences such as OML 212, 118, 135, and OPL 219 collectively generated $1.4 billion in payments across royalties, entitlements, and taxes.
Despite a 5% global decline in total government payouts due to lower company profitability, Nigeria’s numbers bucked the trend, underscoring its continuing importance to Shell’s upstream operations.
Divestment and Oversight Challenges
Shell, active in Nigeria for over 80 years, is withdrawing from onshore oil operations due to repeated issues such as oil spills, litigation, and community disputes in the Niger Delta.
Still, the company said it would retain its deepwater operations, which align better with its net-zero emissions target by 2050.
Meanwhile, scrutiny over oil sector revenues is intensifying.
In March 2025, Nigeria’s House of Representatives summoned 48 oil firms, including Shell, over N9.4 trillion ($6.6 billion) in outstanding obligations flagged by the Auditor-General’s report for 2021.
That same month, the Nigeria Extractive Industries Transparency Initiative (NEITI) launched a review into $6.03 billion worth of IOC divestments involving 26 oil blocks.
“These divestments are reshaping the sector. Transparency and due process must be prioritised,” NEITI said in a statement.
Notable transactions under NEITI’s review include
- Shell’s $2.4 billion sale to Renaissance
- ExxonMobil’s $1.28 billion deal with Seplat
- TotalEnergies’ $860 million sale to Chappal
Read more on Nigeria’s April Oil Output Hits 1.486mbpd, Below 2mbpd Govt Target
