Adedapo Adesanya
By Adedapo Adesanya
President Bola Tinubu has promised to fix the challenges, including pipeline vandalisation, which have constrained Nigeria’s LNG (NLNG) production, resulting in a consequent loss of revenue to the government.
This came as the Board of Directors and Management of NLNG Limited visited the president to discuss the potentials and constraints in its operations.
The MD/CEO of the firm, Mr Philip Mshelbila, stated that besides, multiple taxation from various government agencies and the Finance Act, which is being amended yearly, distorts corporate planning and puts business on the back foot, stifling investor confidence and investment opportunities in the sector.
Mr Mshelbila stated that since its inception, NLNG has contributed enormous revenue to the government through dividends and taxes, noting that the FIRS declared the company as the largest tax-paying company in 2022.
He also emphasised that NLNG’s Domestic LPG (DLPG) Scheme has guaranteed LPG supply, availability, and affordability and has also stimulated the development of different parts of the DLPG value chain in Nigeria, with 100 per cent of produced LPG volumes from NLNG dedicated to the domestic market, supplying about 40 per cent of Nigeria’s domestic LPG demand.
President Tinubu, in his response, thanked NLNG for a visit and commended NLNG for its steadfast commitment to excellence and immense contributions to the gross domestic product (GDP). He acknowledged the critical role the company plays in Nigeria’s economy.
He affirmed the importance of gas not just as a transition fuel but also as the fuel for the future, assuring that the gas sector would get priority attention in this administration.
He then assured the NLNG board that all encumbrances to the progress and development of Nigeria’s industrial citizens as well as any further impediment to the business practice in the oil and gas sector, would be swiftly removed.
Mr Tinubu emphasised that for the oil and gas industry to thrive, all stakeholders in the value chain, especially the host communities, need to be engaged and carried along to enable the government to build confidence and trust.
He urged the Board and Management of NLNG to continue to collaborate with the government to ensure that issues can be resolved quickly and efficiently while reiterating his administration’s commitment to ensuring that businesses thrive to generate economic prosperity and sustainable development.
