NLNG dividend: Senate asks AGF to investigate NLNG $18 billion payment to NNPC



    The Joint Senate Comittee on Finance and National Planning has asked the Office of Accountant General of the Federation, OAGF, to investigate the payment of $18 billion by Nigerian Liquefied Natural Gas, NLNG, to the Nigerian National Petroleum Corporation, NNPC.

     Solomon Adeola, Senator, (APC, Lagos -West), conveyed the resolution of the joint committee to the AGF,  Ahmed Idris at the on-going public hearing on Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, FSP, organised by the committee.

    The AGF was mandated to investigate, among other things, if the amount was actually remitted to NNPC, how much was actually remitted to the Federation Account, if there was any deduction by NNPC.

    The AGF was also asked to investigate how much was deducted and who authorised the deductions and the exchange rates applied for the amount that was remitted over the years under consideration.

    The General Manager (External Relations and Sustainable Development) of NLNG, Eyono Fatai-William, had, during her presentation, disclosed that NLNG had paid a dividend of $18 billion to NNPC on behalf of Federal Government.

    She stated that the payment covered the period of 2004-2020, stressing that NLNG was committed to a culture of transparency and integrity.

    The GM also revealed that the NLNG had also remmited $9 billion as tax to the Federal Government from 2011 to date, while $15 billion had also been remmited as payment of field gas to the NNPC since inception of the company.

    She said that NLNG had also provided detailed year by year breakdown of the $18 billion paid to NNPC as Federal Government share of dividend in this manner; 2004; $278 million, 2005; $57.4 million, 2006; $332.9 million, 2007; $842.9 million, 2008; $2.6 billion and in 2009; $848.6 billion.

    “For 2010, NLNG paid $1.4 billion, 2011, $2.5 billion, 2012, $2.76 billion, 2013, $1.26 billion, 2014, $1.38 billion, while 2015 was $1.043 billion.

    “In 2016; $356 million, 2017; $798 million, 2018; $904 million, 2019; $915 million, while $279.5 million was remitted for 2020”, she said.

    When Adeola inquired from the AGF, Idris Ahmed, if he could confirm the payment of the humongous dividends to the Federation Account, he said it was difficult to determine with any certainty.

    He said that the dividend was usually paid to NNPC that represents the Federal Government in NLNG.

    Adeola, however, asked the AGF to confirm and cross check the details of the remmitance and report back to the committee.

    He stated that the confirmation of the remmitance would give the true situation of Federal Government’s investment in NLNG since inception and the performance situation of the company in general.


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