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Shell says it paid out a total of N29 billion ($145.1m) to the Niger Delta Development Commission (NDDC) in 2015, as its statutory contribution to the intervention agency to help boost development of the oil region.
However, the Commission has frowned at delay by Shell to meet with its contributions to the completion of the all-important N24 billion Ogbia-Nembe Road in Bayelsa State, which is about to be commissioned.
The Shell Petroleum Development Company (SPDC), which just released its 2015 operational report, said on page five that SPDC’s share of the N29 billion is N12 billion.
The Shell report said Shell Companies in Nigeria (SCiN) pursued a variety of social investment projects with particular focus on community and enterprise development, education and health.
In 2015, the report went on, “Shell-operated ventures contributed $145.1 million (Shell share $62.3m) to the NDDC, as required by law.”
The report further stated that Shell also contributed N10Bn ($50.4 million) (Shell share $15.4) to SPDC JV and SNEPCo in social investment projects.
The report said: “Collectively, this makes Nigeria the largest social investment spending (destination) in the Shell group”.
In the same annual report, Shell revealed its total contribution to the federal government, putting the figure at more than N220Bn or $1.1Bn adding that SCiN contributed a total of N8.4 trillion ($42Bn) as total financial contributions to Nigeria between 2011 and 2015.
The report had said; “Nigeria depends on the oil and gas industry for approximately 90 per cent of export income and 75 per cent of overall government income. The economic contribution from SPDC JV partners to the Nigerian government between 2011 and 2015 was $42Bn. The Shell share of royalties and corporate taxes paid to the Nigerian government in 2015 was approximately $1.1Bn”.
Shell’s flagship community project in the oil region seems to be the N24Bn Ogbia-Nembe road expected to get to Brass and unlock the dormant economy in the waterlogged area of the oil region in Central Ijaw zone.
The project, which began at about 2014, was expected to be funded on 70 percent by Shell and 30 percent by NDDC. Late in 2015, in the heat of oil price crisis and revenue reduction in the oil industry, Shell was said to have requested for a reduction in their fiscal obligation ratio down to 60 per cent, a request that was granted, according to the former managing director of the NDDC, Bassey Dan Abia.
As the construction effort fires down to commissioning, NDDC said it had funding constraints based on milestones. The acting MD, Ibim Semenitari, reacting to questions from newsmen on readiness of the Commission to meet up with promised deadlines, said it was being overstretched in funding because of milestones payment delays by SPDC.
BusinessDay gathered that the project is now on milestone 12 while SPDC is at milestone 9 in terms of funding. This is said to have put financial pressure on the Commission with three milestones in arrears of funding from the IOC partner.
