Shell pumps over $6 billion into Nigerian economy in 2020

OpeOluwani Akintayo

Lagos — Reporting indicates that the Royal Dutch Shell invested over $6 billion into the Nigerian economy in 2020.

Its ‘Report on Payments to Governments for the Year 2020’ highlighted the total sum of $6, 486, 447, 036 (N2.7 trillion) paid to four government parastatals; Niger Delta Development Commission, NDDC, Nigerian National Petroleum Corporation, NNPC, Department of Petroleum Resources, DPR, and Federal Inland Revenue, FIRS, including money paid in taxes, royalties, production entitlements and fees on projects last year.

A breakdown showed that in the year under review, the French oil company paid NDDC the sum of $73 billion as ‘fees’, NNPC got the sum of $2 billion as ‘production entitlement’, the DPR received $445 million as ‘taxes’, and $5million as ‘fees’.

The FIRS on its part received $440 million as payment for ‘taxes’.

A sum showed that Shell paid approximately $3.2 billion into government coffers in the year under review.

On projects, Shell said it paid a total of $522 million as production entitlement, taxes, royalties and fees. The payment was on the Production Sharing Contract, PSC assets acquired since 1993- OPL 212/OML 118 and OPL 219/OML 135.

On PSC 1993 (OML 133), the IOC said it paid a total of $107million on production entitlement.

The sum of $929 million was paid on the ‘West Asset’, and $1.2billion on ‘Central East asset’, both on ‘Production Entitlement’.

Shell Development Company of Nigeria Limited, SPDC also paid a total sum of $444 million on taxes, royalties, and fees.

In total, apart from the first $3.2 paid to government-owned firms and agencies, the IOC also paid approximately $3.2billion to Nigeria on projects in 2020.

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