Financial Energy Review
Shell Plc through its subsidiaries in Nigeria in 2021 paid the Nigerian government US$4,480,547,560.
This is contained in its 2021 Sustainability Report, 2022 Industry Associations Climate Review Update and 2021 Payments to Governments Report published Tuesday (yesterday).
A breakdown of the payment shows that US$2,885,571,789 came from production entitlements, US$511,270,685 from taxes and US$573,430,812 from royalties while US$510,274,274 came from fees.
Shell’s Chief Financial Officer, Sinead Gorman, said: “Our operations generate revenue through taxes and royalties for governments around the world. These taxes and royalties are often used by governments to fund essential public services like education, transport and healthcare.
“Since 2016 Shell has made mandatory disclosures under the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015). We have published the revenues that our operations generate through taxes and royalties on a voluntary basis since 2012. We believe that being open about our tax payments helps people to understand how much we pay and why.
“In 2021, Shell paid $58.7 billion to governments. We paid $6.0 billion in corporate income taxes and $6.6 billion in government royalties. In addition, we collected $46.1 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments.
“The 2021 Payments to Governments Report details payments in 25 countries where Shell has Upstream operations, including the basis of reporting and a breakdown by country. The report is prepared in accordance with the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015). This is the seventh report issued by Shell under such regulations.
Shell separately, and voluntarily, publishes its Tax Contribution Report and this has a different reporting basis. The report outlines Shell’s approach to tax and taxes paid and covers 99 countries and locations across all our businesses. For the detailed basis of reporting of these publications we refer to the Payments to Governments Report and the Shell Tax Contribution Report respectively.”
Shell has been formally reporting on sustainability-related performance for 25 years, with the aim of being transparent about activities that are important to investors, governments, and civil society. The 2021 Shell Sustainability Report outlines the progress towards many of its Powering Progress strategic ambitions, and shares related social, safety and environmental performance data.
In his introduction to the report, Shell’s Chief Executive Officer, Ben van Beurden, said: “Our Powering Progress strategy, which we launched in 2021, sets out how Shell can play a leading role in helping the world to reduce its carbon emissions. At the heart of our strategy lies our own target to become a net-zero emissions energy business by 2050, in step with society’s progress in achieving the Paris climate goals. In this, our 25th Sustainability Report, we share how we are working towards our Powering Progress goals.”
