WorldStage newsonline– Shell, the global oil and gas group on Tuesday published its reports on Sustainability and Payments to Governments for 2023 in 26 countries with payments to government in Nigeria put at $4,929,307,556, a 29.71% increase from $3.8 billion paid in 2022.
The payments were for production entitlements, royalties and fees.
According to the report, production entitlements amounted to $3,467,712,631; taxes $587,644,761; royalties $727,850,830; and fees $146,099,334.
Further breakdown showed that $139,994,044 was paid as fees to Niger Delta Development Commission; Nigerian National Petroleum Corporation received $3,467,712,631 as production entitlement; Nigerian Upstream Petroleum Regulatory Commission received $727,850,830 royalties and $1,732,350 fees.
Others include Federal Inland Revenue Service received $587,644,761 taxes; National Agency For Science And Engineering Infrastructure received $4,287,050 fees while $85,890 fees went to Nigeria Police Trust Fund.
Shell has been formally reporting on sustainability-related performance for 27 years, with the aim of being transparent about activities that are important to investors, governments, and civil society.
The report showed that a total of $29,516,841,538 was paid to governments in in 26 countries during the year.
The Shell Sustainability Report also outlines the company’s social, safety and environmental performance in 2023.
In his introduction to the report, Shell’s Chief Executive Officer, Wael Sawan, writes: “In 2023, we made good progress in our goal of creating more value with less emissions. As we continue to deliver the oil and gas that the global energy system relies on, we are reducing the carbon emitted in its production. We are also investing in low-carbon and non-energy products that reduce emissions for our customers.
“We have already achieved some of the commitments made under our respecting nature goal, which we set in 2021. These include reducing fresh-water consumption by 15% compared with 2018 in areas where water supplies are stressed, which we reached ahead of the target date of 2025. We are also making progress in our ambition to become one of the most diverse and inclusive organisations in the world.”
In addition, Shell published its 2023 Payments to Governments Report, in accordance with the UK’s The Reports on Payments to Governments Regulations 2014 (amended 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.
