Shell plc remitted $2.02 billion to the Nigerian government in 2025, a stunning 62 per cent drop from the $5.34 billion it paid in 2024, after completing the sale of its onshore oil assets in the Niger Delta.
The sharp decline reflects Shell's exit from one of Africa's most troubled oil regions, where crude theft, pipeline vandalism and environmental damage have plagued operations for years. The company finished selling its onshore subsidiary to a consortium of Nigerian firms, marking the end of decades of direct onshore production in the country.
Nigeria's take from Shell shrunk to $1.24 billion in production entitlements, $236.99 million in taxes, $454.03 million in royalties and $87.90 million in fees. Just a year earlier, Nigeria ranked as Shell's largest government payment destination globally. That position is now gone.
Shell's overall payments to governments also fell, dropping 15 per cent to $23.8 billion across 26 countries in 2025, from $28.1 billion in 2024. The company paid $8 billion in production entitlements, $10 billion in taxes, $3.8 billion in royalties, $360.6 million in bonuses and $1.6 billion in fees worldwide during the year.
Brazil has now emerged as one of Shell's biggest payment destinations, driven by the company's deepwater pre-salt operations off the South American coast. Norway, Qatar, Malaysia and Oman also featured heavily among Shell's largest government payment recipients in 2025.
The numbers come from Shell's annual report prepared under the UK Reports on Payments to Governments Regulations 2014, which covers all oil, gas and mineral extraction payments by Shell and its subsidiaries. The report excludes refining and some gas-processing work unless they form part of fully integrated upstream projects.
Nigeria's own revenue from Shell has been volatile. The country received $3.8 billion in 2023, then jumped to $5.34 billion in 2024 before collapsing to $2.02 billion in 2025. The 2024 spike proved temporary, a final large payment before the onshore exit took full effect.
The divestment marks a turning point for Shell in Nigeria. For decades the company operated major onshore fields across the Niger Delta, but years of uncontrolled theft, militancy and sabotage made those operations increasingly unprofitable. The sale to indigenous Nigerian firms closes Shell's chapter in onshore production, though the company maintains significant deepwater operations offshore.
Future government revenue from Shell will depend entirely on the company's deepwater portfolio, which has proven more stable and secure than onshore fields. How much Shell will remit to Nigeria in coming years now hinges on oil prices, production volumes from its remaining offshore assets, and whether the indigenous firms managing the onshore fields can stabilize operations and boost government revenue.
