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THE NLNG MEDIA CENTER
NLNG PRESS RELEASE
 
NDDC Levy is inapplicable to Nigeria LNG
03/06/2014

 

 

3 June 2014

Port-Harcourt

Nigeria LNG Limited’s (NLNG) attention has been drawn to recent news reports about a demonstration by youths purported to be affiliated to a body calling itself Niger Delta Youth Stakeholders Forum, over the Company’s alleged refusal to pay a three percent (3%) Niger Delta Development Commission (NDDC) levy.

 

For the avoidance of doubt, this levy is inapplicable to NLNG, a position which has the backing of decisions of the entire spectrum of courts in Nigeria, culminating in a Supreme Court ruling delivered in October 2011.

 

Following an initial suit filed by the NDDC, the Federal High Court on July 11, 2007 delivered judgement stating that NLNG was not liable to pay the NDDC levy.

 

NDDC then proceeded to challenge the High Court ruling at the Court of Appeal. The Appellate Court also ruled in NLNG’s favour. NDDC appealed further to the Supreme Court. The Supreme Court subsequently dismissed NDDC’s appeal.  The basis of the judicial determination of these courts in favour of NLNG is that the Company is not subject to the NDDC levy, taking into account the correct interpretation of the provisions of the NDDC Act 2000.

 

It is instructive to note that when the representatives of the demonstrators were invited into a meeting with NLNG Management and presented with this fact, they claimed to be unaware of it. They then immediately undertook to go back and inform the crowd of demonstrators numbering about 40.  The protesters dispersed shortly afterwards.  

 

As an international company owned by the following shareholders - the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV, SGBV (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A) N. V. S. a. r. l (10.4%) - NLNG wishes to emphasize that it continues to conduct  its businesses in full compliance with the laws of the Federal Republic of Nigeria and applicable tax regulations.

 

It is on record that the Company - consistent with its role as a responsible corporate citizen, helping to build a better Nigeria - recently made early payment of Corporate Income Tax for 2013, far in excess of that paid by any other corporate entity in the country. It also paid Education Tax (Tertiary Education Trust Fund) for the corresponding period.

 

As has been the case since inception, NLNG continues to champion compliance and meet all its applicable tax obligations including Education Tax, Value Added Tax, Personal Income Tax, Withholding Tax, Tenement Rates etc, as accruable to Federal, State and Local Governments.

 

NLNG’s unique approach to corporate social responsibility is anchored on the key elements of partnership and sustainability and its programmes fall into two broad categories, namely human capital and business as well as infrastructure development.

 

For example, some 250,000 homes and businesses on Bonny Island benefit from uninterrupted electricity supply. The Bonny Vocational Centre actively promotes technical and entrepreneurial skills training for hundreds of community beneficiaries. NLNG also initiated a one billion dollar Vendor Finance Scheme in 2013, which affords local businesses access to low cost finance to encourage local content development and enable growth. More recently, NLNG also announced a $12 Million University Support Programme to build or upgrade and equip engineering laboratories in six universities across Nigeria’s geo-political zones to boost teaching and research.

 

Through economic empowerment, entrepreneurship development programmes, support for Nigerian Content, capacity building for local industries, and sustainable community development, NLNG continues to use Nigeria’s gas resources to help diversify the economy and deliver benefits to the country.

 

 

 

Kudo Eresia-Eke

General Manager, External Relations


 Kudo Eresia-Eke  

 
 
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