Senate requests probe of $18bn NLNG dividend payment to NNPC

The Senate has ordered the Accountant-General of the Federation Ahmed Idris to conduct an inquiry into the $18.32 billion allegedly paid as dividends by the Nigerian Liquefied Natural Gas Limited (NLNG) to the Nigerian National Petroleum Corporation (NNPC) between 2004 and 2020.

Solomon Adeola, Chair of the Senate Committee on Finance and National Planning, gave the directive Wednesday at the ongoing stakeholders’ public hearing on the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper.

The General Manager External Relations and Sustainable Development Unit of NLNG, Eyono Fatai-Williams, had appeared before the panel to present the firm’s financial activities from 1999 to 2019.

She informed the panel that NLNG paid an aggregate dividend of more than $18 billion to NNPC between 2004 and 2019.

According to the NLNG top executive, the firm remitted $9 billion as tax to the Nigerian government from 2011 to date while a further $15 billion had been remitted to the NNPC since the company began operation.

Responding to Adeola’s question on whether the Accountant General of the Federation could confirm the dividend payments to the Federation Account, Idris said it would be hard to determine, adding that the dividend was usually paid to the NNPC, which represents Nigeria’s interest in the company.

Adeola thereafter ordered a probe by the Accountant General of the Federation into the payment with a two-week ultimatum to report its findings.

The committee chairman said the confirmation of the remittances would provide a true picture of the Nigerian government’s investment in NLNG since inception and also the overall performance of the company.