Yemisi Izuora
Oil giant Shell has disclosed economic contributions of $23 billion or N5.31 trillion to federal government coffers from 2013 to 2017.
Also, the company’s share of royalties and corporate taxes paid to the Federal Government of Nigeria in 2017 is approximately $1.1 billion or N333.33 billion.
Disclosing the figures yesterday while launching, “She’ll In Nigeria Briefing Notes” in Lagos country chair of She’ll Mr. Osagie Okunbor said, “For Shell Companies in Nigeria, 2017 was an important year in enabling the profitable harnessing of the country’s oil and gas resources that will contribute to the development of the economy.
According to Okunbor, First, an alternative funding agreement worth $1 billion (N303.03 billion) was signed between, Shell Production and Development Company, SPDC, Total E&P Nigeria Ltd (TEPNG) and their government partner, the Nigerian National Petroleum Corporation (NNPC) to help develop two shallow water projects in the Niger Delta – Short Term Oil and Gas Growth (STOGG) and Estuary of Amatu.
Further Oil Development (EA FOD). Second, the SPDC JV commenced production at the Gbaran-Ubie Phase 2 project that will help boost gas supply to the domestic market and maintain supply to the export market.
Third, SNG signed an agreement with a Nigerian company, Shoreline Energy, to market and distribute natural gas to wholesale and retail customers in the Lagos area”.
He said that in 2016, the company’s corporate income tax paid to the Federal Government of Nigeria amounted to about $323 million or N101.83 billion and that between 2012 and 2017, the company has committed over $45 million (N14.19 billion) (approximately $12 million [N3.78 billion) ( Shell share) to social investment projects in the Niger Delta, especially in the areas of capacity building and infrastructure development.
“In 2017, the company flagged- off the construction of the 34-kilometer Bonny – Bodo road following an agreement with the Federal Government of Nigeria to co-fund (50:50) the project estimated to cost more than $190 million (N60 billion) (Shell Share $49 million [N15.36 billion). This is a strategic infrastructure project that will enable socio-economic integration in the Niger Delta region and Nigeria at large when completed”, he disclosed.
According to him, Robust growth in other areas of the economy, improved infrastructure and progress on human development is crucial to Nigeria’s long-term economic and social well-being. The oil and gas industry will continue to provide a backbone for this wider growth for the foreseeable future”.