The Nigeria Liquefied Natural Gas Limited (NLNG) has disbursed a whopping $44 billion in dividends over the last 25 years, with the federal government receiving approximately $21.56 billion, according to the company’s ‘Facts & Figures’ for 2024.
NLNG, a limited liability company incorporated to harness Nigeria’s vast natural gas resources, has paid dividends of over $44 billion, with 49% going to the federal government courtesy of the Nigerian National Petroleum Company Limited (NNPC) shareholding.
In 2023 alone, the federal government received $1.2 billion in taxes from NLNG, headquartered in Port Harcourt, Rivers State. The company has contributed significantly to national wealth and economic well-being, paying all applicable taxes and levies.
However, the federal government’s management of NLNG funds has been marred by controversy. In 2009, the House of Representatives and NNPC disagreed over the whereabouts of $4.44 billion in dividends. The current government has also faced criticism for planning to use NLNG dividends to borrow money, which analysts warn could affect gas production and diminish investor confidence.
NLNG has generated considerable Foreign Direct Investment (FDI) for Nigeria, with assets worth about $20 billion. The company has contributed around 4% of Nigeria’s annual Gross Domestic Product (GDP) since 2008 and provided over 12,000 jobs at the peak of construction.
Notably, through its Nigerian Content plan, NLNG has promoted local manpower development and empowered indigenous contractors. The company has converted 237.7 billion standard cubic meters of associated gas to export, reducing gas flaring and protecting the environment.
It bears mentioning that NLNG has achieved 100% Nigerian management and 95% Nigerian staff, contributing to skill development and reducing unemployment. Its subsidiary, NLNG Shipping & Marine Services Limited (NSML), is the biggest single employer of Nigerian seafarers.
Read More: Why Nigeria’s Queues Won’t Disappear Anytime Soon
Sea Pirates Abduct 10 Maritime Travellers along Bonny-Port Harcourt Waterway
The company’s intervention in the domestic LPG market has supported supply, availability, and affordability, stimulating the development of the DLPG value chain in Nigeria. NLNG supplies about 40% of Nigeria’s domestic LPG demand and is the highest single supplier of LPG in the domestic market.
It is worth noting that as NLNG continues to contribute to Nigeria’s economic growth, the management of its funds remains a subject of scrutiny, with calls for transparency and accountability in the use of these resources.
