WorldStage Newsonline– Royal Dutch Shell on Tuesday confirmed payment of $6,397,325,844 to government institutions in Nigeria out of a total of $29,363,043,107 governments across the world where it had operations during 2018.
The payment to Nigerian institutions in the oil giant annual Payments to Governments Report released today was the highest to any country followed by $4,750,124,510 to Malaysia and $4,210,963,976 to Norway.
The breakdown of the payments in Nigeria showed that Production Entitlement got $3,776,418,858; Taxes $1,286,152,191; Royalties $358,161,091; and Fees $976,593,706.
Included in the Production Entitlement were $3,776,418,858 paid to the Nigerian National Petroleum Corporation (NNPC); Production Sharing Contracts (PSC) 1993 (OPL212/OML118, OPL219/OML135) cost $759,199,810; SPDC East assets cost $1,809,700,722; SPDC Shallow Water assets $368,559,074; SPDC West assets $838,959,252.
The report also confirmed payment of taxes $1,286,152,191 to the Federal Inland Revenue Service; $294,789,470 for PSC 1993 (OPL209); $416,091,020 for PSC 1993 (OPL212/OML118, OPL219/OML135); while Shell Petroleum Development Company Of Nigeria Limited paid $575,271,701.
No record of payment of Bonuses and Infrastructure Improvements during the year, but there were payments of fees to Niger Delta Development Commission at $81,531,381; to DPR at $895,062,325 and $976,593,706 by SPDC
Since 2016 Shell has made mandatory disclosures under the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015) and had published the revenues that its operations generate through taxes and royalties on a voluntary basis since 2012.
According to the report, Shell said it paid more than $64.1 billion to governments in 2018.
“We paid $10.1 billion in income taxes and $5.8 billion in government royalties, and collected $48.2 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments,” the report said.
“By fulfilling the mandatory disclosures in line with the new UK legislative requirements we demonstrate that extraction of natural resources can lead to the opportunity of government revenue, economic growth and social development.”