FG Received $42bn In Five Years – Shell

Netherlands-based oil firm, Royal Dutch Shell Plc said the economic contribution from Shell Petroleum Development Company of Nigeria Limited joint venture partners to the Federal Government was $42bn from 2011 to 2015.

The oil giant said it paid the sum of $4.95bn to the Nigerian government last year as production entitlement, taxes, royalties and fees.

Shell’s ‘Report on Payments to Governments for 2015’ showed that Nigeria received the biggest share of payments from the company out of 24 countries. It was followed by Malaysia, which received $4.41bn; Norway, $4.16bn; Philippines, $2.11bn, and Iraq, $1.36bn.

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According to Shell, the Nigerian National Petroleum Corporation was paid $3.61bn for production entitlement, while the Department of Petroleum Resources was paid $378.5m and $200.6m for royalties and fees, respectively.

The UK sterling price per litre of different blends of refined petrol (US $ 1.43 per litre unleaded) is seen at a Shell fuel station, with the Shard skyscraper seen behind, in central London, Britain

It said it paid $717.9m to the Federal Inland Revenue Service as taxes; $291,115 to the Federation Account with the Central Bank of Nigeria as fees; and $46.9m to the Niger Delta Development Commission as fees.

Shell, in its Sustainability Report 2015 released on Monday, said its share of royalties and corporate taxes paid to the Nigerian government in 2015 was $1.1bn (SPDC $0.6bn; and Shell Nigeria Exploration and Production Company, $0.5bn).

It said 93 per cent of contracts by Shell Companies in Nigeria were awarded to indigenous companies, with $0.9bn spent on local contracting and procurement.

It put the SPDC JV and SNEPCo contribution to the NDDC in 2015 at $145.1m, while $50.4m was spent directly by the SPDC JV and SNEPCo on social investment projects in the year.

The Chief Financial Officer, Royal Dutch Shell, Simon Henry, said by fulfilling the mandatory disclosures in line with the new United Kingdom legislative requirements, the firm had demonstrated that extraction of natural resources could lead to the opportunity of government revenue, economic growth and social development.

He, however, said the report excluded payments related to refining, natural gas liquefaction or gas-to-liquids activities as these were not in the scope of the UK regulations.

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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