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We’re exempted from NDDC levy – NLNG

By on June 5, 2014

Nigeria LNG Limited says it has been exempted from paying the Niger Delta Development Commission levy.

This clarification was made following a recent demonstration by youths purported to be affiliated to a body called Niger Delta Youth Stakeholders Forum, over the company’s alleged refusal to pay a three per cent NDDC levy.

The firm, in a statement on Tuesday, said, “For the avoidance of doubt, NLNG was granted exemption from payment of this levy by the NLNG Act of 2004, a position which has the backing of a Supreme Court ruling delivered as early as 2011.”

Following an initial suit filed by the NDDC, the firm said the Federal High Court on July 11, 2007 delivered judgment stating that NLNG was not liable to pay the NDDC levy.

It explained, “NDDC then proceeded to challenge the High Court ruling at the Court of Appeal. The Appellate Court also ruled in NLNG’s favour. NDDC appealed further to the Supreme Court in October 2011. The Supreme Court subsequently dismissed NDDC’s appeal, ruling that NLNG was legally exempted from paying the NDDC levy in accordance with the provisions of the NLNG Act.

“It is instructive to note that when the representatives of the demonstrators were invited to a meeting with NLNG management and presented with this fact, they claimed to be unaware of it. They then immediately undertook to go back and inform the crowd of demonstrators numbering about 40. The protesters dispersed shortly afterwards.”

NLNG is an international company owned by the following shareholders – the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (49 per cent), Shell Gas BV, SGBV (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International N. V. S. a. r. l (10.4 per cent).

NLNG, therefore, emphasised that it continues to conduct all its businesses in full compliance with the laws of the Federal Republic of Nigeria and existing tax regulations.

Through economic empowerment, entrepreneurship development programmes, support for Nigerian Content, capacity building for local industries, and sustainable community development, the firm said it had continued to use Nigeria’s gas resources to help diversify the economy and deliver benefits to the country.

 

 

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