Financial Energy Review
The Federal Government has received about $5.28billion as dividends from the Nigeria Liquefied Natural Gas Limited under the regime of the President, Major General Muhammadu Buhari (retd.).
The latest data contained in the Facts and Figures 2022 report of the NLNG, obtained in Abuja on Sunday, showed that aside from dividend payments to the Federal Government, the gas company also remitted various funds in taxes, fees, levies, among others.
The NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Company Limited (49 per cent), Shell (25.6 per cent), TotalEnergies Gaz and Electricite Holdings France (15 per cent) and Eni (10.4.per cent).
The company has two subsidiaries, including Bonny Gas Transport Limited and NLNG Ship Management Limited.
An analysis of the report indicated that the $5.28billion dividend was remitted to the Federal Government through the NNPC between 2015 and 2021, as figures for 2022 were currently being computed.
The gas company paid a dividend of $1.04bn to the Federal Government in 2015, while in 2016, 2017 and 2018, it remitted $356.13million $798.14million and $904.5million respectively.
In 2019, 2020 and 2021, the Federal Government, through its national oil company, received $915.65m, $545.13million and $722.44million respectively as dividends from the NLNG.
A summation of the total dividend payments during the seven-year period indicated that the Federal Government, under Buhari, got $5.28billion from the global gas company.
The report also stated that the NLNG had paid dividends of over $40billion since it commenced operations in Nigeria in 1999, out of which 49 per cent went to the Federal Government, courtesy of its shareholding in the company, via the Nigerian National Petroleum Company Limited.
It stated that in 2021, the company’s corporate income tax, including tertiary education tax, paid to the Federal Government, amounted to about $427million, adding that the worth of the assets (i.e. property, plant, and equipment) of the firm was about $19billion.
According to the report, 51 per cent stake in NLNG was owned by international oil companies and 49 per cent belonged to the country through the Nigerian National Petroleum Company Limited.
Data from the report showed that payment to Joint Venture feedgas (natural gas) suppliers from inception till date was about $32billion, adding that 55 to 60 per cent of such payments went to the Federal Government.
The NLNG Limited has long-term Gas Supply Agreements with three Joint Ventures for the supply of natural gas (feedgas) to the plant. These JVs are Shell Petroleum Development Company of Nigeria Limited, TotalEnergies and Nigerian Agip Oil Company Limited. Commenting on the dividends remitted to the government by the gas company, the Deputy National President, Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, told our correspondent that the NLNG had been supporting the Federal Government in many ways.
“It is a welcome development, and the NLNG has been doing a lot in terms of contributing to the purse of the Federal Government. Also, it must be pointed out that the strategic changes at the NNPC have supported in revenue drive for both NNPC and NLNG,” he stated.
He advised that Nigeria’s refineries should be modelled and run like the NLNG, as this would ensure their profitability and sustainability, as well as make the facilities deliver optimally.
