Energy major Shell Plc paid $5.34 billion to the Nigerian government in 2024, the largest amount it remitted to any country, even as it continues to divest from its onshore oil operations in Africa’s largest crude producer.
According to data released in Shell’s annual “Payments to Governments” report, a regulatory disclosure required under UK law, Nigeria topped the company’s global list of government recipients last year, ahead of countries such as Oman, Brazil and Norway.
The figure represents a sharp increase from the $3.8 billion Shell paid to Nigeria in 2023.
Shell’s total remittance of $5.34 billion to Nigeria in 2024 was disbursed across multiple federal institutions and agencies involved in petroleum revenue administration and regional development.
The largest share of over 71% went to the Nigerian National Petroleum Corporation (NNPC), amounting to $3.8 billion.
The payments form part of the $28.1 billion Shell disbursed globally in 2024 to governments for extractive activities, a 5% year-on-year decline in total payouts that mirrored a broader drop in profitability.
Beyond Nigeria, Shell also paid a total of $28 billion to Government where it operates
That figure was down from the $43 million refund received in 2023.
Shell has operated in Nigeria for more than eight decades but is now exiting its onshore oil business following years of operational setbacks, community disputes, oil spills, and rising environmental liabilities in the Niger Delta.
The company has described its divestment strategy as a move to “simplify the portfolio” and support its long-term ambition to become a net-zero emissions energy company by 2050.
However, it has committed to retaining its deepwater oil and gas operations in Nigeria, which it considers more aligned with lower-carbon energy goals.
In March 2025, the House of Representatives summoned 48 oil companies operating in Nigeria to appear before its Committee on Public Accounts, in a series of investigative hearings probing a combined debt of N9.4 trillion.
The transactions include significant deals such as Shell’s $2.4 billion sale to Renaissance, ExxonMobil’s $1.28 billion transfer to Seplat, and TotalEnergies’ $860 million sale to Chappal.
NEITI explained that these divestments were reshaping Nigeria’s oil and gas industry, making it crucial to ensure they are conducted transparently and in line with regulatory standards.