The increase comes as Shell prepares to exit its onshore oil operations in Nigeria after decades marked by controversy.
- Nigeria remained the highest recipient of Shell’s payments, with the top four countries collectively receiving $11.7 billion.
- Shell paid approximately $28.1 billion to governments globally in 2024 for extractive-related taxes and charges.
- The company is exiting its onshore oil operations in the Niger Delta, Nigeria, in line with its environmental goals and long-term strategic plans.
Shell paid $5.34 billion to Nigeria in 2024, the highest amount it paid to any country that year. The payments, which include taxes and other charges, rose compared to the previous year, according to figures released Thursday as part of a UK legal disclosure.
The increase comes as Shell prepares to exit its onshore oil operations in Nigeria after decades marked by controversy.
While the company will continue its offshore production in Nigeria, it is withdrawing from the Niger Delta, a region known for high emissions and persistent environmental pollution concerns.
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Since 2021, the company has been seeking to sell its Nigerian oil and gas assets, which have faced ongoing challenges such as oil spills and theft.
Shell says the move aligns with its broader strategy to streamline its portfolio and reach net-zero emissions by 2050, Bloomberg reported.
Global tax contributions
Shell paid approximately $28.1 billion to governments worldwide in 2024 for taxes and other charges linked to its extractive operations, a nearly 5% drop from the previous year.
Nigeria remained the top recipient, followed by Oman, Brazil, and Norway, which collectively received around $11.7 billion.
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In the UK, Shell received a $32 million refund from the government for decommissioning costs tied to the Brent field and other North Sea assets, a decrease from the $43 million refunded in 2023.
However, this figure only reflects charges related to extractive activities and does not capture Shell’s total UK tax bill. The company’s last disclosed payment to the UK government was approximately $6 billion in 2023, as reported at the end of 2024.
Despite the decline in payments, Shell reported full-year adjusted earnings of $23.7 billion in 2024, down roughly 17% from the previous year.
