FG rakes $4.5b taxes, royalties from Shell
02 April 2023 |
4:00 am
Shell’s report on payments to governments has indicated that the Federal Government earned $4.5b from the oil multinational in the 2022 fiscal year.
Shell staff
Shell’s report on payments to governments has indicated that the Federal Government earned $4.5b from the oil multinational in the 2022 fiscal year.
The amount is made up of the money paid as production entitlement, taxes, royalties, and fees in 2022.
The disclosure was part of Shell’s reports on sustainability, climate & energy transition, lobbying and payments to governments.
A breakdown of the amount showed that the company through Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production Company (SNEPCO) paid $3.035m as production entitlement, taxes $711.850m, royalties $691.648m and fees $81.639m all totaling $4.521b.
Further analysis of the payment also showed that money realised through Production Sharing Contract (PSC) — (OPL212/OML118, OPL219/OML135), as production entitlement to the government was $539.313m, taxes- $278.348m royalties – $480.566m and fees – $20.737m. These amounted to $1.318b.
Production entitlement from the company’s West Asset amounted to $1.783b whereas tax paid in respect of PSC 1993 (OML133) amounted to $194.604m.
The company’s East Asset attracted a production entitlement of $713,234m, while other royalties, taxes and fees paid by SPDC $510.881m.
Shell in the report stated: “Our operations generate revenue through taxes and royalties for governments around the world. These taxes and royalties are often used by governments to fund essential public services like education, transport and healthcare.
“Since 2016 Shell has made mandatory disclosures under the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015). We have published the revenues that our operations generate through taxes and royalties on a voluntary basis since 2012. We believe that being open about our tax payments helps people to understand how much we pay and why.
“In 2022, Shell paid $68.2b to governments. We paid $13.4b in corporate income taxes and $8.2b in government royalties. In addition, we collected $46.6b in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments.”
“Shell has been formally reporting on sustainability-related performance for more than 25 years, with the aim of being transparent about activities that are important to investors, governments, and civil society. The Shell Sustainability Report outlines our social, safety and environmental performance in 2022 and sets out our progress in transitioning our business to net-zero emissions.
Related
8 hours ago
The Lagos Chamber of Commerce and Industry (LCCI) is deeply worried about the various economic headwinds confronting the stability of the Nigerian economy.
9 hours ago
Worried by the dwindling oil production and the need to drive investments in the nation’s oil and gas sector, the Federal Government, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has underscored the imperative of ramping up production as a pivotal strategy to ensure stability in the midstream and downstream sectors of the industry.
9 hours ago
The Nigerian Ports Authority (NPA) is awaiting the Debt Management Office's (DMO) final review and approval of Citibank's $700 million loan mandate, which will fund the rehabilitation of the Apapa and Tin-Can Island ports in Lagos.
1 day ago
A foreign investor at TLG Capitals, Isaac Marshall, has attributed the naira gain to the decision of the Central Bank of Nigeria (CBN) to clear the FX backlog. Nigeria's foreign exchange (FX) reserves have fallen to a six-year low, Marshall said in a statement on his LinkedIn account on Thursday. He stated that this decline…
1 day ago
Stakeholders in the insurance and pension industry have called on operators in the sectors to adopt artificial intelligence (AI) to drive business expansion in the country.
1 day ago
Though it does not have the power to regulate prices, the Federal Competition and Consumer Protection Commission (FCCPC) will deploy an existing legal framework to enforce fair competition and consumer protection provisions to achieve fair prices of commodities.
1 day ago
Inflation in Nigeria is reaching its peak now and will decelerate toward the middle of the year, Director-General of the Budget Office of the Federation, Ben Akabueze, has said.
1 day ago
Nigerian Breweries (NB) Plc has disclosed that the proposed N600 billion recapitalisation scheme by way of rights issue would settle N153 billion outstanding foreign exchange (FX) losses and part of its local bank debt facility.
1 day ago
The International Renewable Energy Agency (IRENA) is seeking a new approach to energy security amidst geopolitical concerns and a push from fossil fuels.
1 day ago
The Chartered Institute of Bankers of Nigeria (CIBN) 2024 yearly lecture, slated to take place on April 23, at the Civic Center, Victoria Island, Lagos, has its theme as "Improving Availability of Credit in the Nigerian Real Economy: The Critical Importance of Liquidity."
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.