Shell plc and its subsidiaries paid the Nigerian government a total of $2.016 billion in 2025 through production entitlements, royalties, taxes, and statutory fees, according to the company’s latest Payments to Governments Report.
The report showed that Nigeria received $1.237 billion in production entitlements, representing the largest share of payments made by the energy giant during the year. Royalty payments amounted to $454.03 million, while taxes stood at $236.99 million. An additional $84.82 million was paid in fees.
The disclosure was contained in Shell’s 2025 Payments to Governments Report, which details payments made across 26 countries where the company maintains upstream operations. The report marks the eleventh edition published under the United Kingdom’s transparency regulations governing extractive industries.
Globally, Shell said it paid approximately $17 billion to governments in 2025, including $12 billion in corporate income taxes and $5 billion in royalties and production taxes.
According to the company, the report was prepared in line with the UK’s Reports on Payments to Governments Regulations 2014, which implemented provisions of the European Union Accounting Directive aimed at promoting transparency in the extractive sector.
Shell stated that the report provides “a consolidated overview of the payments to governments made by Shell plc and its subsidiary undertakings for the year 2025,” covering activities linked to the exploration, discovery, development, and extraction of oil, gas, and mineral resources.
The company clarified that the report excludes payments related to refining, natural gas liquefaction, and gas-to-liquids operations, focusing strictly on extractive activities.
Under the reporting framework, “production entitlements” refer to the host government’s share of oil and gas production from projects operated by Shell, including production-sharing arrangements and cost recovery mechanisms under certain contracts.
The report also explained that royalty payments represent charges paid for the rights to extract oil and gas resources, usually calculated as a percentage of production revenues, while taxes cover payments on income, profits, and petroleum production.
Shell further noted that payments are disclosed on a project-by-project basis where applicable, in line with international reporting standards designed to improve accountability and governance in resource-rich countries.
Nigeria remains one of Shell’s largest upstream markets in Africa, with the company maintaining significant interests in onshore, shallow water, and deepwater operations through various joint ventures and production-sharing contracts
