The Federal Government, states and local governments earned $3.1 billion as dividends, taxes, fees, levies, remittances and other forms of payments by the Nigeria Liquefied Natural Gas (NLNG) in 2017.
The amount was higher than the total $2.1 billion the federation enjoyed as payments in form of taxes, fees and levies and other payments by the NLNG in 2016.
The Nigeria LNG Limited (NLNG), incorporated in 1989 to harness the country’s vast natural gas resources for export, is owned by the Federal Government, represented by the Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total Gaz Electricite Holdings France (15%) and Eni (10.4%).
Daily Trust analysis of the company’s Facts and Figures financial report for 2018 released yesterday in Abuja showed that dividend payments by the NLNG to the NNPC for its 49 per cent stake in the company improved to $798.1 million in 2017 compared to $365.1 million in 2016 which was the lowest in a decade.
The report showed that $16.5 billion has so far been paid to the Federal Government as dividends collected by the NNPC since 1999.
According to the report, gas purchase by the NLNG from the NNPC rose to $835.5m in 2017 compared to $717.7m in 2016. Gas purchase payment to the NNPC based on its agreement with JV partners also increased to $167.1m compared to $66.6m in 2016.
Company Income Tax (CIT) and Education Tax (ET) put together doubled from $323.2m in 2016 to $606.6m in 2017.
With-holding Tax payment by the company also improved from $85.2m to $173.8m in 2017 while regulatory fees paid to government agencies also rose from $23.7m in 2016 to $39m in 2017.
However, Pay-As-You-Earn (PAYE) tax halved to $15m in 2017 from $31.3m in 2016 and Valued Added Tax (VAT) also fell to $23.1m from $24.5m in 2016.
Payment to local contracts for goods and services also shrank to $509.1m in 2017 from $548.3m.
Taxes to states and local governments continued its consecutive downward trend, dropping to $764,357.19 from $1m in 2016.
