Contributing to Nigeria's economy
Shell’s Nigerian businesses support the development of local communities and companies. The businesses in which Shell has interests employed more than 2,500 people directly in 2022 and provided jobs for many others in supplier networks. In 2022, the Shell Petroleum Development Company joint venture (SPDC JV), Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) awarded contracts worth $1.9 billion to Nigerian-registered companies.
Social and economic contribution of Shell companies in Nigeria
people employed by Shell, plus more than 10,000 contractors
employees in Nigeria who are Nigerian
royalties and corporate taxes paid to the Nigerian government in 2022 (SPDC $450 million and SNEPCo $907 million)
worth of contracts were awarded to Nigerian-registered companies
health-care projects supported by the SPDC [A] JV and SNEPCo [B]
university grants awarded by the SPDC JV and SNEPCo since 2016
In 2022, the SPDC JV, SNEPCo and SNG invested $5.6 million in education programmes. More than 3,000 secondary school grants, 3,500 university grants and 990 cradle-to-career scholarship grants have been awarded since 2016.
In 2022, Shell Petroleum Development Company Limited (SPDC) and SNEPCo paid $1.36 billion in royalties and corporate taxes to the Nigerian government (SPDC $450 million, SNEPCo $907 million). Between them, the SPDC JV, SNEPCo and SNG also contributed $34.29 million in direct social investment. Social investment was mainly in projects related to community, health, education, road safety and enterprise programmes. These projects are often implemented in partnership with local authorities.
In addition, $56.13 million has been earmarked to be paid in 2023 by the SPDC JV and SNEPCo for a statutory contribution to Host Communities Development Trusts (HCDTs), which will benefit Nigerian communities. The SPDC JV is transitioning from its existing global memorandum of understanding (GMoU) agreements to the HCDTs in compliance with the Petroleum Industry Act of 2021. Outstanding tranche payments due to communities under the GMoU agreements will be transferred to the HCDTs. The SPDC JV has engaged extensively within its communities, with regulators and across the industry, to support this transition.
In 2021, we launched Shell Energy Nigeria, which aims to supply gas and reliable energy for power generation and industrial use across the country. In 2022, we acquired Daystar Power, a provider of solar power to businesses in West Africa.
Read more about Shell’s economic contribution in Nigeria at www.shell.com.ng/nigeria-briefing-notes.