Shell Nigeria Invests $56.13m for Trust Funds in 2023
Shell companies in Nigeria (SCiN), plans to spend about $56.13 million has been earmarked to be paid in this financial year, as a statutory contribution to the Host Communities Development Trusts (HCDT).
The amount, which will be paid by two of its subsidiaries – The Shell Petroleum Development Company of Nigeria Limited (SPDC), and Shell Nigeria Exploration and Production Company Limited (SNEPCo), are for the benefit of its host communities.
The Country Chair, SCiN, Osagie Okunbor, disclosed this in his message in the Nigeria Briefing Notes for 2022 Business Activities, which speaks to different segments of the companies’ operations.
He explained that “The Nigeria Briefing Notes reflect our pride in the work of Shell Companies in Nigeria, the progress that we have achieved and the contributions we have once again made to communities.”
Okunbor, who reiterated Shell’s continued commitment to Nigeria, also informed that “Between them, SPDC, SNEPCo and SNG spent $34.29 million in direct social investment during 2022.”
He also said that these three companies “funded more than $5.6 million in academic scholarships in 2022, investments that are critical to the country’s development.”
Additionally, these expenditures are aside from Shell committing $1 million to support the government’s efforts to provide relief.
“Beyond that, our own staff raised more than 10 million Nigerian Naira for people most in need.”
These followed the severe flooding, which affected businesses and communities in several states in 2022.
Speaking further, Okunbor said: “Our commitment to Nigeria is not simply in response to such challenges, and in the factsheet of this report, you will find a summary of the revenue we generated for the government through taxes, the employment opportunities we created and the contributions we have made to developing local businesses.
“While these HCDTs are one valuable outcome of the Petroleum Industry Act (PIA), we have always demonstrated resolute commitment to our communities, and we will continue to do so.”
Breaking down the social investment through various interventions in the year under review, the Shell boss said: “In 2022, we worked on several projects including the completion of the final phase of our Oloibiri Health Programme in Bayelsa state which has helped over 18,000 patients since its launch.
“The integrated healthcare project, powered by a hybrid solar electrification system, provides access to a health campus, drug distribution centre and an infant care programme.”
He continued: “In tandem, we continue to improve opportunities for young Nigerians to achieve their ambitions through the Shell LiveWIRE youth programme, providing training in enterprise development and management, as well as business start-up grants.”
Our commitment to Nigeria is not simply in response to such challenges, and in the factsheet of this report, you will find a summary of the revenue we generated for the government through taxes, the employment opportunities we created and the contributions we have made to developing local businesses.
To boost energy transition, Osagie asserted that “By the end of 2022, All On had committed a total of $23.6 million to a portfolio of 46 renewable energy companies.”
All On is an impact investment company established in 2016 and backed by $200 million of seed funding provided by Shell. The Shell chief noted that the All On investment has helped to increase access to commercial renewable energy products and services for the under-served, and the completely unserved off-grid energy markets, with a special focus on those in the Niger Delta.
He also noted that “Shell’s acquisition in December 2022 of Daystar Power, an integrated solar power provider in West Africa, is well aligned with our strategy of delivering more and cleaner energy.”
“Our ambitions align with Shell’s Powering Progress strategy and support Nigeria’s vision to provide reliable, affordable power to its people,” he added.
Given the Federal Government’s Decade of Gas policy, Okunbor said: “We are inspired by the possibilities that exist for developing new gas distribution solutions. SNG continues to provide gas to both business and domestic customers in Nigeria.
“SPDC also took further actions on existing gas projects, such as drilling additional wells to restore supply capacity to meet its commitment to NLNG and build additional contingency margin. “Additional projects are planned for 2023 to build further resilience in supply capacity.”
Following the state of emergency declared by the United Nations Environment Programme (UNEP) in its 2011 report on oil spill in Ogoni land, Okunbor assured that “We remain committed to supporting the clean-up efforts led by the Nigerian government’s Hydrocarbon Pollution and Remediation Project (HYPREP) which was established following the United Nations.”
To this end, he said: “The clean-up and remediation in the Ogoniland community of Bodo is expected to be completed by the end of the third quarter of 2023, with around 87% of the area having been remediated during 2022 and close to 340,000 mangrove seedlings now planted.”
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He added that “We will continue to clean up oil spills, despite the challenges arising from the illegal actions of third parties, such as sabotage and crude oil theft.”
Okunbor pointed out that in the period under review, the two companies paid $79.77 million to the Niger Delta Development Commission (NDDC) while contracts worth $ 1.9 billion were awarded to Nigerian registered contractors.
