President Bola Tinubu has reaffirmed his administration’s dedication to advancing gas development, despite the prevailing challenges arising from infrastructure damage caused by vandalism.
The President restated this commitment during a courtesy visit by the Board of Directors and Management team of the Nigerian Liquified Natural Gas (NLNG)….CONTINUE READING
Addressing the visit, Dr. Philip Mshelbila, the MD/CEO of Nigeria LNG Limited, pointed out that pipeline vandalisation issues have limited NLNG’s production, leading to a loss of government revenue.
Additionally, multiple taxes from various government bodies and the annual changes to the Finance Act disrupt corporate planning and impede business progress. These factors dampen investor confidence and hinder investment prospects within the sector.
Mshelbila highlighted NLNG’s significant contributions to government revenue through dividends and taxes, noting that in 2022, the FIRS recognized the company as the largest tax-paying entity.
He also underscored the positive impact of NLNG’s Domestic LPG (DLPG) Scheme, which has ensured the supply, availability, and affordability of LPG.
This initiative has also spurred growth in various parts of the DLPG value chain within Nigeria, as 100% of the LPG produced by NLNG is allocated to the domestic market, meeting around 40% of the nation’s domestic LPG demand.
President Tinubu, in response, expressed gratitude for NLNG’s visit and lauded the company for its unwavering commitment to excellence and substantial contributions to the country’s GDP. He recognized NLNG’s crucial role in Nigeria’s economy.
Tinubu emphasized the significance of Gas, both as a transition fuel and as a fuel for the future. He assured that the Gas Sector would receive high priority in his administration’s agenda.
He further assured the Board that any obstacles to Nigeria’s industrial progress and oil and gas business operations would be promptly resolved.
Tinubu emphasized that successful growth within the oil and gas industry requires engaging all stakeholders in the value chain, including host communities. He stressed that fostering confidence and trust among these stakeholders is vital for the industry’s prosperity.
He encouraged the NLNG Board and Management to maintain collaboration with the government for swift issue resolution.
He reiterated his administration’s commitment to creating a conducive environment for businesses to thrive, fostering economic prosperity and sustainable development.
Earlier in the meeting, HRM King Edmund Daukoru, Chairman of the NLNG Board, expressed gratitude to President Tinubu for his consistent support in bolstering Nigeria’s standing in the global energy landscape.
He acknowledged NLNG’s pivotal role in the national economy and highlighted the need for government assistance in addressing the company’s current challenges.
