3 June 2014
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)
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 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
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
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.