SPDC JV Contributes Whopping N4.62 Trillion To Nigerian Government

Shell Petroleum Development Company of Nigeria Limited Joint Venture has contributed by way of taxes, royalties and levies to the Nigerian Government the total sum of $17.8billion (N4. 62 trillion) naira between 2014 to 2018.

According to Nigeria Bureau of Statistics in its 2017 report, Nigeria depends on the oil and gas industry for more than 90% of its export earnings and about 70% of government revenue.

Following this, BIGPEN Online understands that out of the aforementioned sum,  SPDC JV,  which operates onshore and in shallow water contributed about $900 million (N272.72 billion) in taxes, and royalties in 2018 to the federal government coffers while SNEPCo, which operates in the offshore deep waters contributed about $800million (N242.42billion) to the nation’s coffers.

In the same vein, the Niger Delta Development Commission, NDDC saddled with responsibility of developing the oil rich Delta State has received from SPDC JV parties,  SNEPCo and it’s co-ventures since inception in 2002 the total sum of $2billion (375.16billion) naira as contributions for the development of the region.

This is in addition to the $239million (N44.36billion) social investment funds disbursed for community-driven projects under the Global Memorandum of Understanding (GMoU) structure by SPDC JV since inception in 2006.

These facts and figures were contained in Shell in Nigeria briefing notes presented to Journalists in Warri at the weekend by a team, led by the Head, Government Relations(West), Mr. Alaye Dokubo on behalf of  SPDC General Manager External Relations, Igo Weli.

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According to the briefing notes, Niger Delta Development Commission(NDDC) got about N15 billion whilst Shell companies in Nigeria awarded contracts worth N393.9 billion to Nigerian companies during the period and spent N17.03 billion on social investment projects

Mr. Igo Weli, enumerated ongoing projects and social investment schemes in Delta state, particularly its operations at Forcados, the Sea Eagle Floating Production, Storage and Offloading FPSO) vessel, 19 Producing Fields within four Production Nodes and several gas projects.

Weli said, “SPDC JV has strong commitment to the development of Delta State and Nigeria through its delivery of positive social outcomes and strong relationships with stakeholders and communities to support business growth and social license to operate.”

He said the company’s ongoing projects, which include Forcados Yokri Integrated, Southern Swamp Associated Gas Solution, Escravos NGC and Otumara Associated Gas Gathering, point to growth in its business in Delta State.

Weli asked stakeholders in the Niger Delta to make concerted efforts to curb the incessant vandalism of crude oil-bearing pipelines, highlighting the danger of continuous sabotage to people and environment in the region.

“While the SPDC JV develops its assets and facilities, it also implements several development projects for host communities, covering economic empowerment, human capital development and provision of social infrastructure”, he said.

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Weli said, “As evidence of our commitment to Delta State, in 2018, SPDC JV spent more than N390 million  on development projects in Global Memorandum of Understanding (GMoU) clusters  on roads, schools, town halls and markets, award of secondary school and university scholarships as well as microcredit programmes for small businesses”.