Shell Petroleum Development Company Joint Venture (SPDC JV) has contributed N10.44trillion ($29billion) to the Federation Account in five years between year 2012 and 2016, according to the Country Chairman of Shell Companies in Nigeria (SCiN), Mr Osagie Okunbor.
Speaking to the journalists on Tuesday during the presentation of ‘2017 Briefing Notes’ in Lagos, Okunbor stated that SPDC JV remains strongly committed to the development of Nigeria.
According to him, “In 2016, the royalties and corporate taxes paid by Shell Companies in Nigeria to the Federal Government was N504billion ($1.4 billion) with SPDC contributing N360billion ($1.0billion) while Shell Nigeria Exploration and Production Company (SNEPCo) contributed N144billion ($0.4billion).
“This is besides the energy which Shell Companies contributed to the Nigerian economy, with Shell-operated ventures in Nigeria recording an output of some 572,000 barrels of oil equivalent per day in 2016.”
Furthermore, Okunbor, who is also the Managing Director of SPDC, said “Shell has been operating in Nigeria for more than 50 years. And it is not by chance that we have remained deeply committed to the development of Nigeria, her people and her economy by efficiently and responsibly producing oil and gas in onshore and offshore as well as distributing gas to industries and producing liquefied natural gas for export.”
Okunbor said the determination of Shell to support the monetisation of the nation’s huge gas resources led it to establish Shell Nigeria Gas in 1998, which now supplies gas to about 90 industrial customers in Ogun, Rivers and Abia states. He said the gas is used for power generation and processing by industries for the manufacture of domestic products ranging from household consumables, to household utensils and hardware.
In a bid to involve more Nigerian contractors in their operations, the Shell Contractor Funding initiative was expanded with eight participating banks committing about $2.2 billion to fund contract execution by Nigerian companies working for Shell Companies in Nigeria. Since the programme’s creation in 2011, loans worth approximately $1 billion have been awarded to 220 small and medium-sized Nigerian enterprises with no recorded defaults on repayment. The Shell Contractor Fund was approved by the Organisation for Economic Cooperation and Development (OECD) at its plenary session on “Shared Value creation and local content” in December 2016 and included in the compendium of global best practices.
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