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The Tide Online (Nigeria): Shell pays $3.1bn as royalties, taxes

The Tide Online (Nigeria): Shell pays $3.1bn as royalties, taxes

“…the federal government is said to have received over 3.125 billion dollars from Shell Petroleum Development Company of Nigeria Limited as royalties, taxes and other levies in 2004”

Tuesday, September 20, 2005

Following higher crude oil prices and increased production, the federal government is said to have received over 3.125 billion dollars from Shell Petroleum Development Company of Nigeria Limited as royalties, taxes and other levies in 2004.

A breakdown of this figure shows that $2.2 billion was paid to the federal government as Petroleum Profit Tax in 2004, representing 83 per cent increase, $904 million as royalties, representing nearly 50 per cent increase, while $21 million was paid as its statutory contribution to the Niger Delta Development Commission (NDDC), in addition to Pay As You Earn (PAYE) tax paid to governments of states where staff are resident as well as education tax paid to federal government.

The oil multinational which disclosed this in its 2004 People and the Environmental Annual Report, added that in the year under review it employed some 3,000 staff directly which is expected to reduce by about 10 per cent in 2005 following the reorganisation of the company.

“We also employed some 7,000 contract staff. In addition, more than 20,000 people are employed indirectly through the network of companies that provide supplies and services”, the report said.

The company assured of its commitment to the development of the Nigerian content as part of its contribution to the sustainable development of the Niger Delta region in particular and the country in general.

The Nigerian content is defined in a draft Act “as the composite value added to or created in the Nigerian human and material resources and services without compromising quality, health, safety and environmental standards”, the report said.

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