NLNG’s dividend to govt dips by 50% due to oil price, militancy says the reports

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…….the need for the National Assembly not to proceed with the proposed amendment of the NLNG Act

The financial performance of the Nigeria Liquefied Natural Gas (NLNG) Limited dipped last year on global low oil prices and heightened militant attacks in the Niger Delta.

While the fomrer started since late 2014, militant attacks peaked early last year resulting in bombing of pipelines including a major gas supplier to NLNG.

According to the 2017 facts and figures presented to reporters in Lagos yesterday by the management of NLNG led by the Managing Director, Mr. Tony Attah, the company dividend paid to the Federal Government from last year’s operations was $356.1million compared to $1.043billion in 2015, $1.390billion in 2014 and $2.769 billion in 2012.

The various taxes paid by the firm also plunged. The company income tax (CIT) and education tax (ET) in 2016 dipped to $323.27million from $2.170billion in 2015 and $1.402billion in 2014. Also pay as you earn (PAYE) dropped to $31.322million in 2016 as against $42.842million in 2015 and $46.903million in 2014. However, value added tax (VAT) was higher last year at $24.598million compared to $20.156million in the previous year, $23.976million in 2014 and $165.483million in 2012.

Attah said since the inception of the company, over $90billion has been generated as revenue, while $15 billion has been paid to the Federal Government as dividends. Also $5.5 billion has been paid to the government in taxes and $13billion for feed gas purchase.

The NLNG chief stated that the firm is moving with its plan of developing Bonny – its host community – into Nigerian Dubai. The 25-year development master plan expects Bonny to become mini-Dubai by 2040. Accenture Group is doing the thinking with NLNG on how to actualise the goal, he said.

Attah also reiterated the need for the National Assembly not to proceed with the proposed amendment of the NLNG Act. According to him, such a step will cost Nigeria a lot of investments and jeopardise future investments by NLNG including Trains 7 and 8 expected to bring $25billion investment, increase the firm’s capacity from 22 million tonnes per annum (mtpa) to 30mtpa, create 18,000 jobs and push up domestic liquefied petroleum gas (LPG)  supply capacity from 250 tonnes to 1.0mtpa.

Besides, he explained that the primary aim of the National Assembly to amend the NLNG Act, which was to compel the gas company to pay the Niger Delta Development Commission (NDDC) levy, does apply because NLNG does not produce gas. It only buys gas just like a fertiliser or petrochemical company, he added.

The NLNG management, it was learnt, has been meeting with the relevant committees of the National Assembly to explain these facts to them and also make them see the entire scenario from the same lens as the gas giant.

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