By Oriental News Nigeria
Nigeria Liquefied Natural Gas Limited, NLNG, paid $489.226 million, about N151.6 billion, in various forms of taxes to the Federal, States and Local Governments in 2016.
The NLNG stated this in its financial statement for the year ended, December 31, 2016, in a report section titled: ‘Facts and Figures on NLNG 2017.’
According to the report, the total amount paid as taxes declined by 80.37 percent or $2.0 billion when compared to total taxes of $2.5 billion, about N772.5 billion, paid to the three tiers of government in 2015. Giving a breakdown of the taxes paid in 2016, the NLNG stated that $323.3 million was paid as Company Income Tax, CIT, compared to $2.2 billion in 2015; $31.3 million and $85.23 million was remitted for Pay As You Earn, PAYE and Withholding Tax respectively, as against $42.8 million and $222.5 million recorded in 2015 respectively. In addition, Value Added Tax, VAT; States and Local Government taxes; and Regulatory fees gulped $24.6 million; $1.028 million; and $23.78 million respectively, compared to 2015 figures of $20.16 million; $2.18 million and $34.41 million respectively.
To this end, the report disclosed that from 1999 to 2016, the NLNG had paid a total of $6.587 billion in taxes to the three tiers of government, with Company Income Tax and Withholding tax accounting for 63.5 per cent and 15.65 per cent of the total sum respectively.
The NLNG also remitted $672.42 million for VAT; $365.327 million for PAYE; $322.84 million was paid as regulatory fees and levies; while it paid States and local government taxes valued at $9.187 million in the 18-year period.
Furthermore, the report stated that international oil companies (IOC), who are shareholders of the NLNG received $380.959 million as dividends from the company in the 2016 fiscal year.
The companies are Shell, Total and Eni. The amount represented a decline of 65.9 percent or $735.58 million when compared to a dividend of $1.117 billion paid to the companies in 2015. Again, the report stated that the three companies have collected total dividends of $16.45 billion over the 18-year period, from 1999 to 2016.
The NLNG reiterated that the proposed expansion plan, the Trains 7 & 8 projects, which would raise its liquefaction capacity to over 30 metric tonnes per annum, is progressing towards a Final Investment Decision, FID.
“In line with its profile as a growing organisation, NLNG will continue to consolidate its position as one of the major and reliable suppliers of LNG in the world,” the NLNG said.
Furthermore, the report stated that in a bid to address the challenges of its vendors in the area of accessing funding, the NLNG had as at June 2016, disbursed over N2.5 billion and $21 million to its vendors under the $1 billion NLNG Local Vendors Finance Scheme (NLVFS) It said, “NLNG recognises the fact that funding is the bane of the Nigerian manufacturing industry.
This led to the introduction of $1 billion NLNG Local Vendors Finance Scheme (NLVFS) which facilitates access to funds from participating banks to NLNG-registered vendors (suppliers of goods or contractors of services).
“Under the scheme vendors are able to get fairer financing terms, which were secured using the leverage of NLNG’s relationships with the banks.
This way, vendors get speedy access to finance for their contracts, or procurement orders, at competitive rates. Over N2.496 billion and $21 million have been disbursed to NLNG vendors as at June 2016.”