Shell, NNPC Increase Contributions by $142.5m to NDDC

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Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production Company (SNEPCo), subsidiaries of Shell plc, along with the Nigerian National Petroleum Corporation (NNPC), have reportedly remitted a combined $142.5 million to the Niger Delta Development Commission (NDDC) in 2023. This represents a significant increase from their contributions in 2022.

A statement by Shell Nigeria’s Manager, Media Communications and NGO Relations, Mr Bamidele Odugbesan, disclosed that SPDC paid $112.5m while SNEPCo remitted $30m, compared to $59.04m by SPDC and $20.73m by SNEPCo in 2022.

He noted that the contributions came from the Shell companies on behalf of themselves and their respective partners—the Nigerian National Petroleum Company Limited; TotalEnergies, EP Nigeria Limited; NAOC; and Esso Exploration and Production Nigeria Limited—as statutory contributions to the interventionist agency.

SPDC Director and Country Head of Corporate Relations, Igo Weli, said the company’s support for NDDC was part of its aspirations for the development of the Niger Delta, which had also seen a wide range of social investments, including health and education.

“With the continuous support of our partners, we will continue to discharge our obligations to communities through statutory payments to agencies and projects executed in partnership with stakeholders,” Weli stated.

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This news comes amidst ongoing discussions regarding resource allocation and development initiatives in the Niger Delta, a region rich in oil and gas reserves. The NDDC, established in 2000, is tasked with facilitating the development of the Niger Delta region. However, the commission has faced criticism for alleged mismanagement and inefficiency.

The breakdown of the contributions reveals a rise from both Shell and NNPC. SPDC reportedly paid $112.5 million, a 90% increase from their 2022 contribution, while SNEPCo remitted $30 million, compared to $20.73 million the previous year. It’s important to note that some sources attribute the contributions solely to Shell, highlighting the joint venture nature of the NNPC-Shell operations in the Niger Delta.

While the increased contribution signifies a positive development, questions remain regarding its impact and transparency. Critics argue that the overall sum represents a small fraction of the revenue generated from oil and gas extraction in the Niger Delta. Concerns persist about the NDDC’s ability to effectively utilize these funds for genuine development projects in the region.

Further analysis is needed to understand how these funds will be allocated and the specific projects they will support. Transparency regarding project selection and implementation will be crucial in ensuring the contribution translates into tangible benefits for the people of the Niger Delta.

It’s also worth noting that Shell’s announcement comes shortly after the company declared Nigeria as its biggest recipient of payments in 2023, totaling $4.92 billion. This figure includes production entitlement, royalties, taxes, and fees paid to the government.

It’s also worth noting that Shell’s announcement comes shortly after the company declared Nigeria as its biggest recipient of payments in 2023, totaling $4.92 billion. This figure includes production entitlement, royalties, taxes, and fees paid to the government.