Profit before tax
Main Business Activities
- Upstream and Integrated Gas
- Other support activities
Shell has been present in Nigeria for more than 60 years. Our activities include oil and gas exploration and production.
Three businesses are wholly owned by Shell Group companies: The Shell Petroleum Development Company of Nigeria Limited (SPDC), which has a 30% interest in the SPDC joint venture and produces oil and gas in the Niger Delta and shallow offshore waters; Shell Nigeria Exploration and Production Company Limited (SNEPCo), which operates in the deep waters of the Gulf of Guinea; and Shell Nigeria Gas Limited (SNG), which provides gas to Nigerian industrial and commercial customers.
All On Partnerships for Energy Access Limited (All On), wholly owned by SPDC and SNEPCo, was set up in 2016 as a company limited by guarantee for the purpose of closing the access to energy gap in Nigeria with a special focus on the Niger Delta area. In collaboration with its partners, All On is increasing access to commercial energy products and services for off-grid communities in under-served and unserved areas of Nigeria.
In addition, Shell Gas B.V. holds a 25.6% shareholding in Nigeria LNG Limited, which produces and exports liquefied natural gas (LNG) to European and other markets.
Country Financial Analysis
The statutory corporate income tax rate in Nigeria is 85% for onshore operations, 50% for offshore operations and 30% for other operations, including gas.
Shell has several oil and natural gas projects still in the exploration, development or construction phases. Shell’s production was reduced by the COVID-19 pandemic and OPEC quota reductions imposed in response to the global economic slowdown. The lower production combined with lower prices led to a decrease in financial results in 2020 compared with 2019.
Shell paid tax in 2020 on profits from producing assets.