Energy

NLNG has no outstanding dividend payments to government

NLNG

Nigeria LNG has denied owing the Federal Government $15.9 billion as outstanding dividend payment. This is following calls by the Nigerian Extractive Industries Transparency Initiative (NEITI)’s to the House of Representatives to probe the alleged loss of $15.9 billion dividend accruing to the Federal Government.

The General Manager, External Relations Kudo Eresia-Eke said in a statement issued at the weekend that NLNG like every responsible corporate entity supports the principles and objectives of NEITI. This includes the promotion of transparency in payments by extractive industry companies to Governments and Government-linked entities.

NLNG has no outstanding dividend payments to Government and continues to conduct its business in accordance with regulation and the laws of the Federal Republic of Nigeria, he noted.

Eresia-Eke added that NLNG is aware that NEITI had previously stated publicly in 2016 that records indicate that NLNG duly made the applicable dividend payment to the NNPC as representative of Government’s interest in the venture.

He disclosed that NEITI’s 2017 Policy Brief document specifically details dividend payments by NLNG to NNPC between 2000 and 2014 and confirms that NNPC acknowledged receipt of same.

It added that it converted about 133 billion standard cubic metres, or 4.68 tcf trillion cubic feet, of Associated Gas, AG, to exports as LNG and Natural Gas Liquids, NGLs, thus helping to reduce gas flaring by upstream companies.

It will be recalled that  the NLNG  through its plant construction, the company attracted a considerable amount of Foreign Direct Investment ( FDI) into the country, to this regard, has acquired assets ranging from property, plant and equipment, worth over $14billion which is financed mainly by the NLNG’s shareholders with 51% stake by International oil Companies, IOCs, and 49% to the country through the NNPC.

While enlisting a number of projects it has embarked upon his the birth of the company, it mentioned that it has contributed about 4% of the country’s annual Gross Domestic Product also stating that going by the current rebasing of the GDP, the firm now contributes about 1% to the GDP.

The company said it subsidized the price of cooking gas from over N7000 in 2007, to less than N3, 500 per 12.5kg cylinder today making it fairly affordable for consumers.

Furthermore it reiterated its commitment to delivering over 250,000 tonnes of LPG into the Nigerian market annually and has signed Sales and Purchase Agreements, SPAs, with 15 off-takers (all Nigerian companies) for the lifting of LPG for the domestic market.

In addition, on its corporate social responsibility scheme, the company shared that in May 2014, it signed a Memorandum of Understanding, MoU, with six Nigerian universities for the development of engineering education thereby donating $12 million to boost education in the country.

Under the initiative, the company contributed $2 million on each of the participating universities for the construction of modern engineering laboratories and procurement of cutting edge engineering equipment to aid teaching and research.

Among the beneficiary universities are: University of Ibadan, University of Ilorin, University of Port Harcourt, University of Maiduguri, Ahmadu Bello University, and University of Nigeria, Nsukka.

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