The Nigerian Liquified Natural Gas company has reached out to President Tinubu, urging him to take decisive action in addressing the persistent sabotage of oil pipelines and the burdensome issue of multiple taxation that hinder the operations of companies in the country.
During a recent visit to the Presidential Villa in Abuja, the Board of Directors and Management of Nigeria LNG Limited expressed their gratitude to President Bola Ahmed Tinubu for his unwavering support in strengthening Nigeria’s position in the global energy sector.
Edmund Daukoru, the chairman of the NLNG Board, conveyed his appreciation to the President for his backing and emphasized the company’s substantial contributions to the government’s revenue through dividends and taxes. He also highlighted that in 2022, the FIRS recognized NLNG as the largest tax-paying company in the country.
Philip Mshelbila, the MD/CEO of NLNG, underscored the company’s pivotal role in Nigeria’s economy. He emphasized the need for government support in addressing several challenges currently facing NLNG. These challenges include the imposition of multiple taxes by various government agencies and the annual amendments to the Finance Act, which disrupt corporate planning, negatively impacting businesses and undermining investor confidence in the sector.
Mshelbila also pointed out the positive impact of NLNG’s Domestic LPG (DLPG) Scheme, which ensures a stable supply, availability, and affordability of LPG while stimulating the development of various aspects of the DLPG value chain in Nigeria. He noted that 100 percent of the LPG produced by NLNG is dedicated to the domestic market, serving approximately 40 percent of Nigeria’s domestic LPG demand.
In response, President Tinubu expressed his gratitude for NLNG’s visit and commended the company for its unwavering commitment to excellence and its significant contributions to the country’s GDP. He acknowledged the critical role NLNG plays in Nigeria’s economy and emphasized the importance of natural gas as both a transition fuel and the fuel of the future.
President Tinubu assured the NLNG Board that the Gas Sector would be a top priority in his administration. He pledged to swiftly remove any obstacles hindering the progress and development of Nigeria’s industrial sector, particularly in the oil and gas industry.
Furthermore, President Tinubu stressed the importance of engaging all stakeholders in the gas sector value chain, especially host communities, to build trust and confidence. He encouraged NLNG to continue collaborating with the government to address issues efficiently, reiterating his administration’s commitment to ensuring a thriving business environment that fosters economic prosperity and sustainable development.
In summary, NLNG’s call to action highlights the pressing need to address challenges such as pipeline sabotage and multiple taxation, which hinder the growth of businesses in the oil and gas sector. President Tinubu’s commitment to addressing these issues and prioritizing the Gas Sector signifies a positive step toward achieving economic prosperity and sustainable development in Nigeria.