Energy giant Shell Plc has revealed that it paid $5.34 billion to the Nigeria in 2024 its highest financial remittance to any country, even as it advances its divestment from onshore operations in the country.
According to Shell’s annual Payments to Governments report, required by UK law, Nigeria received the largest share of the company’s $28.1 billion global payouts last year, placing ahead of Oman, Brazil, Qatar, and Norway. The figure marks a significant increase from the $3.8 billion paid to Nigeria in 2023.
Shell’s $5.34 billion remittance in 2024 was distributed across several government agencies managing petroleum revenue and regional development. The largest share—$3.8 billion—went to the Nigerian National Petroleum Corporation (NNPC), making up 71% of the total.
Here’s the detailed breakdown:
- NNPC: $3,804,949,166
- Federal Inland Revenue Service (FIRS): $648,734,398
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC): $781,963,813
- Niger Delta Development Commission (NDDC): $97,260,899
- National Agency for Science and Engineering Infrastructure (NASENI): $3,931,917
Most of the remittances came from production entitlements the government’s share of oil output under joint ventures and production-sharing contracts, amounting to $3.8 billion. Taxes stood at $648.7 million, while royalties accounted for $770.2 million. Additional fees and statutory charges made up about $102 million.
Notably, Shell’s East Asset production hub contributed $1.3 billion, while a cluster of blocks OML 212, OML 118, OML 135, and OPL 219 collectively generated $1.4 billion in payments.
Shell’s Global Remittance Overview
Globally, Shell disbursed $28.1 billion to governments, down 5% year-on-year, reflecting a decline in profitability. Other top recipients included:
- Brazil: $4.5 billion
- Oman: $4.3 billion
- Norway: $3.38 billion
- Qatar: $3.33 billion
In Africa, countries like Egypt, São Tomé and Príncipe, Tanzania, and Tunisia received far smaller amounts ranging from $140,000 to $43 million.
Meanwhile, Shell received a $32 million refund from the UK government, mainly linked to decommissioning costs in the North Sea. This was a slight drop from the $43 million refund in 2023.
Shell has operated in Nigeria for over 80 years but is now gradually exiting the onshore oil business, citing challenges such as environmental issues, oil spills, and community unrest. The company, however, is keeping its deepwater assets, which align better with its long-term net-zero emissions target.
In March 2025, the Nigerian House of Representatives summoned 48 oil companies including Shell Nigeria Exploration and Production Company, Seplat Energy, TotalEnergies, and Mobil Producing Nigeria—to account for a N9.4 trillion debt flagged by the Auditor-General’s 2021 financial report.
Also in March, the Nigeria Extractive Industries Transparency Initiative (NEITI) launched a review of divestments covering 26 oil blocks worth $6.03 billion. These include Shell’s $2.4 billion sale to Renaissance, ExxonMobil’s $1.28 billion deal with Seplat, and TotalEnergies’ $860 million transaction with Chappal.
A 9am News report notes that NEITI is prioritizing transparency and regulatory compliance in these high-stakes deals, which are reshaping Nigeria’s energy landscape.
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