WorldStage Newsonline– Shell Plc on Thursday published its 2025 Payments to Governments Report with $2,016,386,431 paid to government in Nigeria, a 62.2% decline from $5,336,840,193 paid to government in Nigeria in 2024.
The sharp drop in Shell payments to government may be due to the conclusion of the selling of its onshore and shallow-water oil assets in Nigeria to Renaissance Africa Energy Holdings for $1.3 billion.
The assets include:30% stake in the Shell Petroleum Development Company (SPDC) joint venture, 250 producing oil wells, 37 producing gas wells, Four gas plants, Two onshore oil export terminals, Approximately 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of associated and non-associated gas.
The latest report of payment to government showed that production entitlements in 2025 amounted to $1,237,467,592 ; taxes $236,994,532; royalties $454,028,549; fees $87,895,758.
https://www.worldstagenews.com/shell-pays-5-3b-to-nigerias-government-for-2024-operations/
Further breakdown showed that Federal Inland Revenue Service collected $236,994,532 as taxes; National Agency For Science And Engineering Infrastructure collected $2,397,000 as fees; Niger Delta Development Commission collected $85,498,758 as fees; Nigerian National Petroleum Corporation collected $1,237,467,592 as production entitlements; while Nigerian Upstream Petroleum Regulatory Commission collected $454,028,549 as royalties.
Shell said the report provides a consolidated overview of the payments made to governments by Shell plc and its subsidiary undertakings (Shell) for the year 2025, as required under the UK’s Reports on Payments to Governments Regulations 2014 (as amended in December 2015).
“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,” it said.
In 2025, Shell said its effective tax rate was 39% which it said is almost double the 20.5% average country Effective Tax Rate, according to OECD data.
