Shell awards $518mn contracts to 123 Nigerian firms in 2025

Shell (LSE: SHEL, NYSE: SHEL) awarded contracts worth $518mn to 123 indigenous companies in Nigeria in 2025, as the company expanded local participation across its oil and gas operations and supply chain, it has revealed.

Shell Communications Manager Gladys Afam-Anadu said the contracts reflected the company’s continued efforts to increase Nigerian content and support domestic service providers in the energy sector. She said the engagements covered a range of businesses involved in Shell’s operations during the year.

Shell Vice President, Commercial, Rohan D’Souza, said payments made to Nigerian companies demonstrated the company’s support for local firms providing technical, logistics and specialised services. He said Shell viewed the development as more than a regulatory requirement, describing it as a long-term approach to creating shared value.

The company said its capacity-building initiatives had strengthened the ability of domestic firms to deliver services required across the oil and gas industry, allowing more Nigerian businesses to participate in areas traditionally served by international contractors.

D’Souza also highlighted the inauguration of a $3bn contract finance facility by Shell Nigeria Exploration and Production Company Ltd (SNEPCo). Established in partnership with nine Nigerian banks, the facility is designed to improve contractors’ access to funding for projects awarded by SNEPCo.

The financing arrangement will be available in both naira and US dollars, providing indigenous contractors with greater flexibility in managing project costs and securing resources for project execution.

Shell also disclosed that it paid about $2.016bn to the Nigerian government in 2025 through production entitlements, royalties, taxes and statutory fees. The company said the payments reflected its more than six decades of operations in Nigeria.

The company has maintained a presence in Nigeria’s energy sector for over 60 years, with local content development forming part of its engagement with domestic suppliers and contractors. “The growth of indigenous businesses is more than a regulatory obligation; it is a long-term approach aimed at creating shared value,” D’Souza said.