NLNG dividend: Senate asks Accountant General to investigate payment of $18bn to NNPC

The Joint Senate Committee on Finance and National Planning has asked the Office of Account General of the Federation (OAGF) to investigate the payment of 18 billion dollars by Nigerian Liquefied Natural Gas (NLNG) to the Nigerian National Petroleum Corporation (NNPC).

Sen. Solomon Adeola (APC, Lagos -West), conveyed the resolution of the joint committee to the AGF, Mr. Ahmed Idris at the on-going public hearing on Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), organised by the committee.

The AGF was mandated to investigate, among other things, if the amount was actually remitted to NNPC, how much was actually remitted to the Federation Account, if there was any deduction by NNPC.

The AGF was also asked to investigate how much was deducted and who authorised the deductions and the exchange rates applied for the amount that was remitted over the years under consideration.

The News Agency of Nigeria (NAN) reports that Mrs. Eyono Fatai –William, General Manger (External Relations and Sustainable Development) of NLNG had, during her presentation, disclosed that NLNG had paid a dividend of 18 billion dollars billion to NNPC on behalf of Federal Government.

She had said the payment covered the period of 2004-2020, stressing that NLNG was committed to a culture of transparency and integrity.

She also revealed that the NLNG had also remmited nine billion dollars as tax to the Federal Government from 2011 to date, while 15 billion dollars had also been remmited as payment of field gas to the NNPC since inception of the company.

She said that NLNG had also provided detailed year by year breakdown of the 18 billion dollars paid to NNPC as Federal Government share of dividend in this manner; 2004; 278 milliion dollars, 2005; 57.4 million dollars, 2006; 332.9 million dollars, 2007; 842.9 million dollars, 2008; 2.6 billion dollars and in 2009; 848.6 billion dollars.

“For 2010, NLNG paid 1.4 billion dollars, 2011, 2.5 billion dollars, 2012, 2.76 billion dollars,2013, 1.26 billion dollars, 20 14, 1.38 billion dollars, while 2015 was 1.043 billion dollars.

“In 2016; 356 million dollars, 2017; 798 million dollars, 2018; 904 million dollars, 2019; 915 million dollars, while 279.5 million dollars was remitted for 2020”, she said.

When Adeola inquired from the AGF, Idris Ahmed, if he could confirm the payment of the humongous dividends to the Federation Account, he said it was difficult to determine with any certainty.

He said that the dividend was usually paid to NNPC that represents the Federal Government in NLNG.

Adeola,however, asked the AGF to confirm and cross check the details of the remmitance and report back to the committee.

Adeola said the confirmation of the remmitance would give the true situation of Federal Government’s investment in NLNG since inception and the performance situation of the company in general.