Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo) has paid over $6.397 billion to the Federal Government and its agencies in 2018.
The payment represents a 48 per cent increase overpayments ($4.322 billion) by the companies.
The facts formed part of the four documents released yesterday by the Group Chief Executive Officer of the Royal Dutch Shell, Ben Van Beurden, to signal the firm’s renewed commitment to greater transparency.
The documents are “Shell Sustainability Report”; “Industry Associations Climate Review”; “Nigeria Briefing Notes”; and “Payments to Government”.
“Shell must remain at the forefront of the drive for greater corporate transparency. We will continue to be more open about what we do and why we do it,” said van Beurden, adding: “We want to help people better understand Shell’s performance, values and principles. These reports outline our approach and activities in the crucial areas of sustainability and our relationships with industry associations and governments.”
In the breakdown of the 2018 payments, the Shell companies paid $3.776 billion to the Nigeria National Petroleum Corporation as production entitlement while $1.286 billion was paid in taxes to the Federal Inland Revenue Service.
Another $1.253 billion went to the Department of Petroleum Resources for royalties and fees, while $81.5 million was remitted to the Niger Delta Development Commission.
SPDC Managing Director and Country Shell Companies in Nigeria chair Osagie Okunbor, described the reports as a further testament to Shell’s efforts to increase transparency around activities that are important to investors, governments and civil society.
“We are irrevocably committed to transparency just as we are to business integrity part of our core values and central tenets of the Business Principles that govern the way we do business,” Okunbo said.The Shell Nigeria Briefing Notes detail the activities of the Shell Companies in Nigeria for 2018. These include production, environmental performance, social investment, economic contributions, gas initiatives, deepwater operations, security and Nigerian content development.