MARCEL MBAMALU
Shell’s operations in Nigeria generated over $2 billion for the federal government in 2025, making the country the oil major’s largest fiscal contributor across Africa, according to the company’s latest payments disclosure.
The British energy firm paid $2.02 billion to Nigerian authorities last year in taxes, royalties, fees and production entitlements, dwarfing remittances to four other African states combined. The figures are contained in Shell’s 2025 Payments to Governments Report, released Thursday, which covers upstream activities in 26 countries where the company has extraction operations.
Nigeria Dominates Shell’s Africa Payouts
Across Egypt, Nigeria, São Tomé & Príncipe, Tanzania and Tunisia, Shell paid a total of $2.18 billion to governments in 2025. Nigeria alone accounted for 92% of that amount.
Join our WhatsApp ChannelA breakdown shows:
Egypt: $161.4 million
Tunisia: $4.87 million
São Tomé & Príncipe: $200,000
Tanzania: $142,811
The remaining four countries received just $166.7 million collectively — less than 10% of Nigeria’s share.
Where the Money Went in Nigeria
The $2.02 billion paid to Nigeria was distributed across key federal and state-linked institutions:
NNPC Ltd: $1.24 billion in production entitlements
NUPRC: $454.03 million in royalties
FIRS/NRS: $236.99 million in corporate taxes
NDDC: $85.5 million in statutory fees
NASENI: $2.4 million in fees
The payments stemmed from Shell’s interests in East and West assets under OML 144, PSC 1993 assets including OPL 209/OML 133, OPL 212/OML 118, and OPL 219/OML 135.
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Global Context
Globally, Shell reported $17 billion in total tax payments to governments in 2025. Of that, $12 billion was corporate income tax and $5 billion was royalties and production taxes. The company has a taxable presence in more than 90 countries.
Shell said the report, its 11th under mandatory disclosure rules, only includes extractive payments above the £86,000 materiality threshold as required by regulation.
Push for Transparency
Commenting on the release, Shell Chief Financial Officer Sinead Gorman reiterated the company’s call for greater transparency in the extractive sector.
“Shell is transparent about the taxes we pay, and we encourage governments to join the EITI and share contracts and licenses in line with the EITI’s standard,” Gorman said. “We perform risk-based due diligence on business partners and comply with all applicable laws in the countries where we operate, consistent with the Shell General Business Principles.”
Shell has maintained upstream and gas operations in Nigeria for more than six decades, making it one of the longest-standing international oil companies in the country.
Dr. Marcel Mbamalu is a distinguished communication scholar, journalist, and entrepreneur with three decades of experience in the media industry. He holds a Ph.D. in Mass Communication from the University of Nigeria, Nsukka, and serves as the publisher of Prime Business Africa, a renowned multimedia news platform catering to Nigeria and Africa's socio-economic needs.
Dr. Mbamalu's journalism career spans over two decades, during which he honed his skills at The Guardian Newspaper, rising to the position of senior editor. Notably, between 2018 and 2023, he collaborated with the World Health Organization (WHO) in Northeast Nigeria, training senior journalists on conflict reporting and health journalism.
Dr. Mbamalu's expertise has earned him international recognition. He was the sole African representative at the 2023 Jefferson Fellowship program, participating in a study tour of the United States and Asia (Japan and Hong Kong) on inclusion, income gaps, and migration issues.
In 2020, he was part of a global media team that covered the United States presidential election.
Dr. Mbamalu has attended prestigious media trainings, including the Bloomberg Financial Journalism Training and the Reuters/AfDB Training on "Effective Coverage of Infrastructural Development in Africa."
As a columnist for The Punch Newspaper, with insightful articles published in other prominent Nigerian dailies, including ThisDay, Leadership, The Sun, and The Guardian, Dr. Mbamalu regularly provides in-depth analysis on socio-political and economic issues.
