LAGOS — Shell Companies in Nigeria awarded contracts worth $518 million to indigenous firms in 2025, reinforcing efforts to deepen local content development in the country’s oil and gas sector.
The company disclosed that 123 Nigerian companies were engaged across its operations within the period, covering various segments of the value chain.
Vice President, Commercial, Shell Nigeria, Rohan D’Souza, said the payments reflect the company’s commitment to supporting local businesses.
“The payments show a strong support for Nigerian service providers in our operations,” he said.
D’Souza added that Shell’s approach to local content goes beyond regulatory compliance.
“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,” he stated.
He noted that Nigerian firms have continued to provide technical, logistics and other critical services, with Shell supporting them to strengthen capacity and improve operational standards.
In a related development, Shell Nigeria Exploration and Production Company Ltd (SNEPCo) recently introduced a $3 billion Contract Finance Facility in partnership with nine Nigerian banks to support indigenous contractors.
The fund, available in both naira and dollars, is designed to ease financing challenges and enable local firms to execute major contracts within the industry.
Highlighting Shell’s broader economic contribution, D’Souza revealed that the company also paid about $2.016 billion to the Nigerian government in 2025 through production entitlements, taxes, royalties and statutory fees.
“When you consider the fact that Shell also paid some $2.016 billion… to the Nigerian Government in 2025 alone, you get an idea of the enduring partnership we have forged in the country for more than 60 years,” he said.
Industry analysts say sustained investment in indigenous capacity is key to strengthening Nigeria’s oil and gas sector, boosting local participation and enhancing economic value retention.
