Nig’s Most Profitable Company, NLNG Is Refusing To Pay Tax – NIMASA Lawyer

[ChannelsTV]

Lawyer to Nigerian Maritime Administration and Safety Agency, NIMASA; Emeka Akagobu has explained that the failure of Nigerian Liquefied Natural Gas (NLNG), to pay up its taxes and levies to the Nigerian government, led to the closure of the companies operation in Bonny Island by NIMASA. NIMASA had on Friday blocked all access to the Bonny Chapel in a bit to extract unpaid levies from NLNG. While speaking on Channels Television Sunrise Daily, Mr. Akagobu noted that NLNG claims that its establishing legislation exempts it from all duties, charges, taxes, levies or any charges of any kind levy in Nigeria and "this is wrong." According to the lawyer, the legislation which established the NLNG in 1989 and amended in 1993 exempted the company from taxes because of its pioneer status and the law was expected to last for a period of 10 years. Mr Akagbou further explained that the NLNG legislation also provides that "once the price of gas reaches a threshold of above $3 per Metric British Thermal Unit of gas, the aforementioned law will seize". The threshold was reached in 2004 when the price of gas reached a certain threshold with a 5 year period after NLNG lifted its first cargo in 1999. "By 2004 that threshold of above $3 per Metric British Thermal Unit of gas was achieved" and ever since NLNG is yet to pay the federal government any tax or levy, yet it has become the most successful and profitable business venture in terms of profit and balance sheet in Nigeria, the lawyer inferred. He explained that the legislation which sets up NMASA gives the agency, the right to collect 3 per cent of the gross rate of every international in bound and out bound vessel landed cargo, including all vessels operating within Nigerian waters. Lamenting that despite the enormous success of the gas company, NMASA's attorney stated that "it's quite disturbing that such a successful company driven through natural resources of Nigeria, is flying in the face of the existing established legislation guiding operations in Nigeria." He alleged that from 2007 -2009 discussions where on to reach an amicable settlement but NLNG has been opposing the talks and it refused to pay because of the obsolete law. He added that there have been interventions from existing government and even the office of the president as at 1997 as well as the Ministry of Transport. He added that inspite of the directives given NLNG has refused to pay and that in the past, NMASA has not been able to enforce the law and this is the first time they have decided to enforce the law.    

Via: ChannelsTV