Shell Pays $70bn to FG in Five Years

The Managing Director of Shell Petroleum Development Company (SPDC) and Country Chairman of Shell companies in Nigeria, Mr. Mutiu Sunmonu, has disclosed that the group contributed $70billion to the Nigerian coffer from 2009 to 2013: See Breakdown below:

Briefing journalists in Lagos on Wednesday June 25, 2014, Sunmonu stated that while SPDC contributed $44billion, the sister company, Shell Nigeria Exploration and Production Company (SNEPCo) paid $26billion.

Sunmonu further stated that Shell companies awarded contracts worth $1.5billion to Nigerian companies in 2013 and paid $180million to the Niger Delta Development Commission (NDDC).

According to him, Shell also contributed over $700million to Education Fund and over 100 million on corporate social responsibility (CSR).

On crude oil production, Sunmonu disclosed that SPDC produced average of 535,000 barrels of oil equivalent per day in 2013, while SNEPCo produced 158,000 barrels of oil equivalent per day.

He said the companies’ overall production of 693,000 boe/d in 2013 was less than the 949,000boe/d produced in 2012 because of crude oil theft and sabotage.

Sunmonu said about 1.2billion cubic feet of gas was being flared in Nigeria, with Shell accounting for only 18per cent.

On the alleged pressure from some quarters for oil companies to contribute to electioneering, Sunmonu said he was not aware of such pressure.

He, however, disclosed that he had earlier yesterday sent a circular to all Shell staff, warning them that the company does not engage in politics.

He also informed the workers via the circular that any of them who chooses to contribute to electioneering must declare such intention officially to the company.

SPDC contributed  44,000,000,000

SNEPCo Contributed 26,000,000,000

Awarded Contracts 1,500,000,000

NDDC 180,000,000

ETF 700,000,000

CSR 100,000

Ajibola Aderonke is an auditor at professional services firm Ernst & Young (EY). She previously worked another Big 4 accounting firm PwC. She can be reached at ajibolaaderonke@gmail.com for ideas and suggestions. The post above and its ensuing comments, if any, is purely the opinion of the writer.