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NLNG pays $1.6bn tax to govt

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Gas storgae

Gas storgae

Nigeria Liquefied Natural Gas Company Limited, NLNG – a joint venture between the government and foreign oil majors, has generated some $85 billion from exports of liquefied natural gas, LNG, since its inception 15 years ago.

It has also paid billions of dollars to the state in tax, according to the managing director of the company, Mr. Babs Omotowa.

“For us, it has been a success story. Between 1999 when we came on stream and now, we have realised some 85 billion dollars from exports of liquefied natural gas to buyers in Europe, America and Asia,” chief executive officer of the company, Omotowa told reporters.

He said the company, which was set up to harness Nigeria’s vast natural gas resources and produce liquefied natural gas for export, has also paid billions of dollars to the state in tax.

“Just a few days ago, we paid 1.6 billion dollars to the government as tax and this will go a long way to assist the new government in solving some of its problems,” he added.

The new administration of President Mohammadu Buhari, who became the first Nigerian to oust a sitting president in democratic elections in March, is facing a severe economic crunch.

About 20 of the country’s 36 states are unable to pay workers salaries.

Omotowa said the company had paid 30 billion dollars in dividends to its shareholders over the years, including the government, which owns a 49-per-cent stake through the Nigerian National Petroleum Corporation, NNPC.

NLNG’s other shareholders are Anglo-Dutch oil major Shell, which owns 25.6 percent, Total LNG Nigeria, a subsidiary of French oil giant Total, which owns 15 percent, and Italy’s Eni, with 10.4 percent.


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1 Comment
  • emmanuel kalu

    what have you don’t to create demand for the product domestically. why are we always exporting all our natural resources, instead of creating value with them. nigeria power plants need gas, residents need gas to stop the deforestation and kerosene subsidy. NLNG need to work toward fulfilling nigeira gas demand before exporting.