News

August 26, 2020

We remitted $18bn to NNPC since 2004, NLNG tells Senate

NNPC deductions from Federation Account rise 40.5% to N883.56bn in Q1’22

As Senate directs accountant general to investigate

By Henry Umoru

THE Senate was told Wednesday that the Nigerian Liquefied Natural Gas (NLNG) has so far  remitted 18 billion  dollars to the Nigerian  National  Petroleum  Corporation (NNPC) from 2004 to date  as dividends to the Federal  Government.

According to  NLNG, it has also remitted  nine  billion  dollars  in Tax  to the Federal  Government  from  2011 to date, while 15 billion  dollars  had also been remitted   for  field  gas to the NNPC since  inception  of the company.

The  General Manager (External Relations and Sustainable Development) of NLNG, Mrs. Eyono Fatai –William made the disclosure yesterday in Abuja

while  presenting  a financial summary of the  company from 1999-2019 and projections on the Medium Term Expenditure Framework for 2021 to 2023 before  the Senator Olamilekan Adeola, All Progressives Congress, APC, Lagos  West led Senate Joint Committee on Finance and National Planning Stakeholders on the  details of the 2021and 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded last month by President Muhammadu Buhari.

Speaking further, the NLNG  General Manager,  Mrs. Eyono Fatai –William gave the breakdown  of the 18 billion  dollars remitted  to NNPC on behalf  of the Federal  Government    to NNPC to include 2004 2.7milliion dollars, 2006 332.9 million  dollars,2007 842.9 million dollars,2008 2.6 billion  dollars,2009 848.6 billion dollars.

She said that, for 2009, NLNG remitted 848.6million dollars ,2010,  1.4 billion dollars,2011, 2.5 billion  dollars,2012, 2.7 billion dollars,2013,1.26 billion dollars,20 14, 1.38 billion  dollars while  2015 was 1.04 billion  dollars.

According to her,  the NLNG remitted 356 million  dollars to NNPC in 2016,2017 798 million  dollars, 2018, 904 million  dollars,2019,915 million  dollars while  279.5 million  dollars  was remitted  for 2020.

Meanwhile the Senate has directed the Accountant General of the Federation, Ahmed Idris to as a matter of urgency, carry out a holistic investigation into the payment of the sum of $18,323,032,261.03(over $18billion) as dividend from Nigerian investment in the Nigeria LNG Limited (NLNG) between 2004 and 2020.

Giving the directive, Chairman of the Committee, Senator Adeola asked the Accountant General to investigate among other things, if the amount was actually remitted to NNPC, how much was actually remitted to the Federation Account, if there is any deduction by NNPC, how much was deducted and who authorized the deductions and the exchange rates applied for the amount that was remitted over the years under consideration.

When Senator Adeola inquired from the Accountant General of the Federation if he can confirm the payment of the humongous dividends to the Federation Account, he said it was difficult to determine with any certainty immediately as the dividend was usually paid to NNPC who are the representative of Nigeria in the company.

Senator Adeola who urged  the Accountant  General  of the Federation, to confirm and cross check  the details  of the remittance and report back  to the committee  on Aug 26, said that  the confirmation  of the remittance   would  give the true  situation of Federal  Government’s  investment  in NLNG since  inception and the performance  situation  of the company  in general.

The Committee therefore directed the Accountant General to investigate the payment and report back to the Senate in two weeks.

The Senate was also told that Nigeria through NNPC have about 53% shareholding in Nigeria LNG Limited.

The Committee  also mandated  the Registrar  General  of the Corporate Affairs  Commission, CAC  to within  the end of August  remit  to the Consolidated Account.

Vanguard