Pipeline vandalism, multiple taxes hurting businesses, NLNG tells Tinubu

The Nigerian Liquified Natural Gas company has called on President Tinubu to take action to tackle the constant sabotage of oil pipelines as well as multiple taxation, which constrain companies operating in the country.

During a visit by the Board of Directors and Management of Nigeria LNG Limited to President Bola Ahmed Tinubu at the Presidential Villa in Abuja on Wednesday, Edmund Daukoru, the chairman of the NLNG Board, thanked the president for his support in bolstering Nigeria’s position in the global energy landscape.

Philip Mshelbila, the MD/CEO of the Company, said that since its inception, NLNG has contributed enormous revenue to the government through dividends and taxes, noting that the FIRS declared the Company as the largest tax-paying company in 2022.

Read also: Activities of pipeline vandals detrimental dwindling economy- SPDC 

“NLNG’s Domestic LPG (DLPG) Scheme has guaranteed LPG supply, availability, and affordability and has also stimulated the development of different parts of the DLPG value chain in Nigeria, with 100 percent of produced LPG volumes from NLNG dedicated to the domestic market, supplying about 40 percent of Nigeria’s domestic LPG demand,” Mshelbila said.

He said the NLNG has played a crucial role in Nigeria’s economy, noting the need for government support in resolving some challenges the Company is presently facing.

Some of these challenges include multiple taxation from various government agencies and the Finance Act, which is being amended yearly, and distorts corporate planning, putting businesses on the back foot and stifling investor confidence as well as investment opportunities in the sector.

Read also: Pipeline vandalism adds to Nigeria’s economic woes

In his response, Tinubu thanked the NLNG for the visit and commended the company for its steadfast commitment to excellence and immense contributions to GDP, acknowledging the critical role the Company plays in Nigeria’s economy.

Tinubu affirmed the importance of Gas not just as a transition fuel but also as the fuel for the future, assuring that the Gas Sector would get priority attention in this administration.

He assured the Board that all encumbrances to the progress and development of Nigeria’s industrial citizens as well as any further impediment to the business practice in the oil and gas sector would be swiftly removed.

Read also: Tinubu turns to gas to improve Nigeria’s economy

In addition, the President said that for the oil and gas industry to thrive, all stakeholders in the value chain, especially the host communities, need to be engaged and carried along to enable the government to build confidence and trust.

He told the Board and Management of NLNG to continue to collaborate with the government to ensure that issues can be resolved quickly and efficiently while reiterating his administration’s commitment to ensuring that businesses thrive to generate economic prosperity and sustainable development.