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LNG
Finance and Policy  
20 March 2017

Nigeria: gov reveals drop in LNG dividends

Dividend payments to the federal government for its 49% stake in Nigeria Liquefied Natural Gas Limited (NLNG) have been declining over the last decade.

NLNG’s financials indicate that government's dividends fell by $687.6 million equivalent to 65.8%, the lowest in 10 years. The figure has subsequently dropped from $1.04 billion in 2015 to $365.1 million in 2016, Daily Trust reported.

NLNG is owned by four shareholders: the federal government, represented by the Nigerian National Petroleum Corporation (NNPC; 49%) Shell Gas (25.6%), Total (15%) and Eni (10.4%), produces LNG as well as natural gas liquids for export. Read more...

LNG payments

It is reported that in 2008, NLNG paid $2.6 billion, $848.6 million in 2009, and $1.4 billion in 2010 as dividends.

Payments rose to $2.5 billion in 2011 and $2.7 billion in 2012 before sliding to $1.2 billon in 2013 and $1.3 billion in 2014.

NLNG managing, Tony Attah, acknowledged that the 2016 financial year was tough as the market was down.

"People will think it was only the oil price that was down. The gas price was down as well," Attah told journalists in Abuja recently.

Group general manager, NNPC Capital, Godwin Okonkwo, said while confirming the latest payment, that the company no longer receives the funds, adding that it goes directly to the Central Bank of Nigeria while they only keep the records.

Presidential approval

According to media, payments of dividends, tax and other payments by the NLNG to the government through NNPC have in the past caused ripples. Read more...

Daily Trust cited some of the accusations against the state-owned company, which includes a recent NEITI audit that disclosed NLNG having paid around $1.289 billion as the dividend in 2013, NNPC acknowledged receipt but did not forward it to government.

Okonkwo said before NNPC spend anything, it gets presidential approval.

"Every kobo spent out of that account must have presidential approval,” he said.

According to Daily Trust, apart from the $356 million NLNG dividend payout for 2016, the Nigerian federation also enjoyed other payments in form taxes, fees and levies whose value also dropped.

 

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