Economy

NLNG Revenue Declines to $4.7b in 2016

Published

9 years ago

30/03/2017

By Modupe Gbadeyanka

Nigeria Liquefied Natural Gas (NLNG) has released its unaudited financial statement for the year ended December 31, 2016, declaring a decline in its earnings for the period under review.

In the statements, the firm said its revenue slumped by 30.98 percent from $6.84 billion recorded in 2015 to $4.72 billion in 2016.

The company said despite the sharp drop in its revenue, its capital investment appreciated slightly by 1.98 per cent to $881.84 million from $864.76 million recorded in the previous year.

However, the drop in revenue, negatively affected its dividends payout, as it paid $737.086 million in dividends to its shareholders — the Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni 2016.

The amount paid as dividends in 2016 represented a 65.89 percent decline when compared to total dividends of $2.161 billion paid to shareholders in 2015.

In addition, the report pointed out that $717.72 million was expended by the NLNG to purchase gas from the NNPC in 2016, compared to $1.18 billion in the previous year, while $593.16 million worth of gas was purchased by the NLNG from Shell, Total, Agip and Conoco Philip in 2016, compared to $961.97 million in 2015.

The NLNG, according to the report, also paid local contractors $565.64 million for goods and services, dropping by 7.4 percent from $610.82 million paid out to local contractors in 2015.

To this end, the report stated that the NLNG had from 1999 to December 31, 2016, recorded total revenue of $95.09 billion; total capital investment of $16.57 billion; total dividends paid to the NNPC stood at $15.7 billion; while Shell, Total and Eni received $16.45 billion as total dividends in the 18-year period.

Also, NLNG’s total gas purchases from the NNPC from 1999 to 2016 stood at $12.588 billion; gas purchases from Shell, Total, Agip and Conoco Philip stood at $10.29 billion over the same period; while total payments to local contractors for goods and services from 1999 to 2016 stood at $5.66 billion.

The NLNG disclosed that in a proactive bid to discover more Nigerian sources, Nigerian Content surveys and vendor forums were conducted at scheduled intervals to identify indigenous companies capable of providing the goods and services required by NLNG.

It also stated that through its initiative to empower local contractors via the Finnima Legacy Project, five host community-based contractors had made capital investments in their companies thereby expanding their operating capacity, while it had also strategic partnerships between the more established Nigerian vendors and the community vendors.

The NLNG further disclosed that about 54 vendors had been trained at the Bonny Vocational Centre to improve their skills in business development and project management, while its deliberate strategies implemented to increase spend in some communities had led to a significant increase in year-on-year spend with direct spend increasing by over 100 percent between 2011 and 2013 and even further in 2014.

It said, “Doing business with Nigeria LNG has engendered improvement in some of our vendors’ business processes, and led them to upgrade their facilities and capacity to meet very stringent requirements.

“In the past, for instance, NLNG worked with Dorman Long Nigeria Limited and Nigerdock Nigeria PLC to enhance their galvanisation capability, with Nexans Kabelmetal to increase manufacturing capacity and with Nigerian Foundries to improve their processes for the manufacture of trench gratings and manhole covers.”

http://sweetcrudereports.com/

Economy

TotalEnergies Sells 10% Stake in Renaissance JV to Vaaris

Published

3 hours ago

14/01/2026

Adedapo Adesanya

By Adedapo Adesanya

TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.

The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.

In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.

Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.

The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.

Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.

“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.

“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.

“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.

The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.

Economy

NGX RegCo Revokes Trading Licence of Monument Securities

Published

12 hours ago

14/01/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.

Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.

The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.

“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.

Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.

However, with the latest development, the firm is no longer authorised to perform this function.

Economy

NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months

Published

13 hours ago

14/01/2026

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.

In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.

According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.

The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.

The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.

The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.

“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.

“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.

NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.

It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.

This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.