Shell Companies in Nigeria awarded contracts valued at $518 million to 123 indigenous companies last year to deepen local content participation while contributing more than $2 billion to the government in taxes, royalties and other statutory payments.

The figures in Shell’s 2025 Payments to Governments Report highlight the oil company’s continued investment in Nigerian businesses despite evolving dynamics in the country’s oil and gas sector.

Speaking on the development, Shell’s Vice President, Commercial, Rohan D’Souza, said the contract awards demonstrate the company’s long-standing commitment to strengthening indigenous participation across the oil and gas value chain.

D’Souza said: “The payments show a strong support for Nigerian service providers in our operations. We see the development of Nigerian companies beyond compliance with laws. It is an integral part of a longstanding strategy to create a win-win relationship with indigenous companies and support them to create more value in the oil and gas industry within and outside the country.”

According to Shell, the indigenous companies provided a range of technical, engineering, logistics, and other specialised services across its operations, reflecting years of capacity-building aimed at improving local expertise and operational standards.

The latest figures come amid renewed efforts by the company to improve access to finance for indigenous contractors.

About two weeks ago, Shell Nigeria Exploration and Production Company Limited (SNEPCo) unveiled a $3 billion contract finance facility in partnership with nine leading Nigerian banks.

The initiative is designed to provide local contractors with easier access to financing needed to execute contracts awarded under Shell’s operations.

The facility, available in both naira and dollars, is expected to ease funding constraints that have often limited indigenous firms’ capacity to undertake large-scale oil and gas projects.

Beyond local content development, Shell said it contributed approximately $2.016 billion to the Nigerian government in 2025 through production entitlements, royalties, corporate taxes and other statutory payments.

D’Souza said the combined value of government payments and support for local businesses reflects Shell’s enduring partnership with Nigeria, where it has operated for more than six decades.

“When you consider the fact that Shell also paid some $2.016 billion through production entitlements, royalties, taxes and statutory fees to the government in 2025 alone, you get an idea of the enduring partnership we have forged in the country since we set foot here more than 60 years ago,” he said.