Royal Dutch Shell Plc (Shell) paid a total of N2.3 trillion ($6,397,325,844) to the Nigerian government in 2018 — the highest of such amount paid in the 34 countries where the company operates.
A report that detailed the company’s payments to governments in 2018 showed that Nigeria’s earnings comprised of production entitlements, taxes, fees, and royalties.
No payments were made for bonuses and infrastructure developments.
The payments signify a 65 percent increase from the N1.5 trillion Nigeria earned in 2017, making it the second time in two years Nigeria is grossing the largest revenues from the company.
The Nigerian National Petroleum Corporation (NNPC) received the lion’s share with payments in kind valued at N1.4 trillion ($3,776,418,858) for 104,014 million barrels of oil from Shell’s deepwater and shallow water projects.
This is just $100 billion shy of the total amount paid to the Nigerian government in 2017.
Next in line was the Federal Inland Revenue Service (FIRS), which received N462.3 billion ($1,286,152,191) in taxes while the Department of Petroleum Resources (DPR) received N450.5 billion ($1,253,223,416) from royalties and fees.
The Niger Delta Development Commission (NDDC) was paid fees totalling N29.3 billion ($81,531,381).
The oil giant paid a grand total of $29,363,043,107 (N10.6 trillion) to all 34 countries with Malaysia paying the second highest at $4,750,124,510 followed closely by Norway who paid $4,210,963,976.
Shell payments to Nigeria is 62% of 2019 budget revenue projection
In the proposed 2019 budget, government pegged its revenue projections at N6.97 trillion with oil sector expected to contribute N3.73 trillion.
This means the payments from Shell accounts for approximately 62% of expected government revenue.
President Muhammadu Buhari, while giving an overview of the implementation of the 2018 budget and presenting 2019 budget estimates at a joint session of the national assembly in December 2018, had said the overall revenue performance is only 53% of the target in the 2018 budget.
He said some “one-off revenue items” were yet to be actualised and would be “rolled over” to 2019.
Payments to governments data from Shell and other international oil companies operating in Nigeria could be used to hold the government accountable for revenues generated from the sector.
UK PM says London terror attack part of ‘new trend’
Nigerian stocks risk downgrade on naira value as MSCI reclassifies markets
Kuwait joins Saudis, U.A.E. assuring more OPEC oil cuts
Nigeria’s central bank offers liquidity cushion to non-interest financial institutions through two n...
Bitcoin is a ‘fraud’ that will eventually blow up, says JPMorgan CEO,
Foreign reserves mere accounting item, not savings – Chike-Obi
Deutsche Bank and Commerzbank shares rally on merger talk
What African central banks will be discussing in the next 7 days
Port Harcourt electricity distributor threatens Calabar teaching hospital with disconnection over N6...
WHO Africa region puts continent’s nations on Ebola notice, as funding gap hits 40%