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 2023 and provided jobs for many others in supplier networks. In 2023, the Shell Petroleum Development Company joint venture (SPDC JV), Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) awarded 1,163 contracts to Nigerian-registered companies.

In 2023, SPDC and SNEPCo paid $1.09 billion in royalties and corporate taxes to the Nigerian government (SPDC $442 million, SNEPCo $649 million) [C].

[C] Royalties and corporate taxes paid to the Nigerian government comprise royalties and corporate income tax as defined and reconciled in "Reconciliation of non-GAAP financial measures, Taxes paid and collected".

Between them, the SPDC JV, SNEPCo and SNG also contributed $42.2 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 2023, the SPDC JV, SNEPCo and SNG invested $3 million in education programmes. More than 3,450 secondary school grants, 3,772 university grants and 1,062 cradle-to-career scholarship grants have been awarded since 2016.

In 2022, the SPDC JV transitioned from its existing global memorandum of understanding agreements to Host Communities Development Trusts (HCDTs) in accordance with the provisions of the Petroleum Industry Act of 2021. By 2023, 27 of the 33 HCDTs had been incorporated. These trusts were funded by the SPDC JV, with $42 million representing its statutory contributions for 2022 and 2023.

In 2022, Shell acquired Daystar Power, a provider of solar power to businesses in West Africa. The investment helps expand our energy business into developing markets like those in Africa where more lower-carbon electricity is needed. Daystar is now expanding its operations into South Africa. Daystar Power is present in seven countries and runs more than 400 power installations. It has installed more than 50 megawatts of solar power for commercial and industrial customers.

In January 2024, Shell announced the sale of SPDC. Completion of the transaction is subject to regulatory approvals and other conditions. To learn more visit: www.shell.com/media/news-and-media-releases/2024/shell-agrees-to-sell-nigerian-onshore-subsidiary-spdc/spdc-sale.

Read more about Shell’s economic contribution in Nigeria at www.shell.com.ng/nigeria-briefing-notes.