Oil & Gas
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The Nigerian Liquefied Natural Gas has denied the allegation by the Nigeria Extractive Industries Transparency Initiative that it did not remit N2.32 trillion dividend to the federal government
| By Anayo Ezugwu | Aug 24, 2015 @ 01:00 GMT |
THE Nigerian Liquefied Natural Gas, NLNG, has denied the claims by the Nigeria Extractive Industries Transparency Initiative, NEITI, that it did not remit N2.32 trillion accruing to the federal government as dividend into the federation account. Kudo Eresia-Eke, general manager, external relations, NLNG, said the company had over the years conducted all its businesses in full compliance with the laws of the country and existing tax regulations, championing compliance and meeting all its applicable tax obligations to federal, state and local governments.
“A case in point is NLNG’s payment of $1.6 billion to the Federal Government recently as Company Income Tax and Education Tax for 2014 financial year. In line with our vision to help build a better Nigeria, NLNG supports the principles and objectives of NEITI, including the promotion of transparency in payments by extractive industry companies to governments and government-linked entities, he said.
According to him, “Nigeria LNG remains the most significant arrow-head of the federal government’s continuing efforts to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves.”
The NLNG has remained responsible to its shareholders and pays dividends to them according to the shareholding structure. “NEITI had in a previous announcement confirmed that NLNG had fulfilled its obligations to the shareholders and that an inter-ministerial committee had been set up to reconcile payments made to NNPC which it had confirmed had been received. These facts are also contained in the NEITI published report, which is also available on NEITI website.”
NEITI had on Sunday, August 2, accused the NLNG of not remitting N2.32 trillion into the federation account. The extractive company in its 2012 audit report, said the NLNG has not remitted the money. Zainab Ahmed, executive secretary, NEITI, disclosed these when she led a delegation of the agency’s management team on a courtesy visit to Nasir el-Rufai, Kaduna State governor.
Ahmed, while soliciting the support of the governor towards the implementation of the findings and recommendations contained in NEITI audit reports, said issues thrown up in the reports had remained unimplemented and described the development as “an unfortunate recurring decimal.”
Realnews reports that data from NEITI audit reports showed between 2009 and 2012, Nigeria lost about $1.1 billion to crude oil and product swap, while the NLNG dividends to the tune of $11.6 billion had yet to be remitted to the federation account. From the NEITI 2012 report, Nigeria spent more than $7 billion on Joint Venture Cash Calls with international oil companies.
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