Shell awards $518 million in contracts to Nigerian firms and has paid over $2 billion in taxes and royalties, strengthening local businesses and the Nigerian economy.
Shell Companies in Nigeria awarded contracts worth $518 million to 123 Nigerian companies in 2025. The move shows Shell’s continued support for local businesses in the oil and gas sector. At the same time, the company paid more than $2.016 billion to the
Nigerian government through taxes, royalties, production entitlements, and other statutory fees. The figures were released in Shell’s 2025 Payments to Governments Report. They highlight the company’s growing investment in indigenous businesses despite changes in Nigeria’s energy industry.
According to Shell’s Vice President, Commercial, Rohan D’Souza, the contract awards go beyond meeting legal requirements. He said they are part of the company’s long-term plan to grow Nigerian businesses.
“The payments show a strong support for Nigerian service providers in our operations. We see the development of Nigerian companies beyond compliance with laws. It is an integral part of a longstanding strategy to create a win-win relationship with indigenous companies and support them to create more value in the oil and gas industry within and outside the country,” D’Souza said.
The contracts covered engineering, technical, logistics, and other specialised services.
Meanwhile, Shell is also helping local contractors solve one major challenge—access to funding. About two weeks ago, Shell Nigeria Exploration and Production Company Limited (SNEPCo) launched a $3 billion contract finance facility with nine leading Nigerian banks. The programme gives Nigerian contractors easier access to loans in both naira and dollars. As a result, more local companies can take on bigger oil and gas projects without worrying about funding.
Beyond supporting local businesses, Shell said its payments to the government show its lasting commitment to Nigeria. D’Souza noted that the company has maintained a strong relationship with the country for more than 60 years.
“When you consider the fact that Shell also paid some $2.016 billion through production entitlements, royalties, taxes and statutory fees to the government in 2025 alone, you get an idea of the enduring partnership we have forged in the country since we set foot here more than 60 years ago,” he said.
The latest figures underline Shell’s continued role in boosting local content while contributing billions of dollars to Nigeria’s economy.
