Energy giant Shell Plc confirmed it paid $5.34 billion to the Nigerian government in 2024, marking its highest global government payment for the year.

This figure is a sharp increase from the $3.8 billion remitted in 2023, highlighting Nigeria as Shell’s top government recipient worldwide.

According to Shell’s annual “Payments to Governments” report, required under UK law, the majority of the funds—over 71% or approximately $3.8 billion—went to the Nigerian National Petroleum Corporation (NNPC).

Additional payments included $648.7 million in taxes, $770.2 million in royalties, and about $102 million in fees and other statutory charges.Shell spokesperson said, “These payments reflect our continued commitment to Nigeria, despite ongoing operational challenges and our strategic decision to divest from onshore oil operations.”

Shell has been operating in Nigeria for over 80 years but is exiting its onshore oil business due to operational setbacks, environmental concerns, and community disputes.

The company remains focused on deepwater oil and gas projects, which align with its goal to become a net-zero emissions energy company by 2050.

The report also highlights that Shell’s East Asset production hub contributed $1.3 billion of the payments, while clusters of licenses such as OML 212 and OML 118 together generated $1.4 billion in various payments.

Beyond Nigeria, Shell’s global payments to governments totaled $28.1 billion in 2024, a 5% decline from the previous year, reflecting broader industry profitability trends. Oman and Brazil followed Nigeria as top recipients, receiving $4.3 billion and $4.5 billion respectively.

The Nigerian House of Representatives recently summoned major oil companies, including Shell, for hearings on a combined debt of N9.4 trillion.

This follows a transparency push by the Nigeria Extractive Industries Transparency Initiative (NEITI), which is reviewing multi-billion-dollar divestment deals within the country’s oil sector.