Shell Plc paid $2.02 billion to the Nigerian government in 2025, a 62.2% drop from the $5.34 billion paid in 2024, according to the company’s 2025 Payments to Governments Report.
The decline follows Shell’s completion of the sale of its onshore and shallow-water assets in Nigeria to Renaissance Africa Energy Holdings in a deal valued at $1.3 billion.
The divested assets include a 30% stake in the Shell Petroleum Development Company joint venture, 250 producing oil wells, 37 producing gas wells, four gas plants, and two onshore oil export terminals. The assets hold an estimated 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of gas.
For 2025, Shell reported production entitlements of $1.24 billion, taxes of $237 million, royalties of $454 million, and fees of $87.9 million.
A breakdown shows the Federal Inland Revenue Service received $237 million in taxes, while the Nigerian National Petroleum Company received $1.24 billion in production entitlements. The Nigerian Upstream Petroleum Regulatory Commission got $454 million in royalties, the Niger Delta Development Commission received $85.5 million in fees, and the National Agency for Science and Engineering Infrastructure collected $2.4 million.
The report covers payments made by Shell plc and its subsidiaries for extractive activities in 26 countries, in line with UK regulations. Only payments of £86,000 or more are included.
Shell also said its effective tax rate in Nigeria for 2025 was 39%, nearly double the OECD average country effective tax rate of 20.5%.
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