The Managing Director and Chief Executive Officer of Nigeria LNG Limited, Tony Attah, has listed the challenges confronting the company to include operations of multiple regulatory agencies, pipeline security issues, and double taxation. Speaking during an oversight visit by the Senate Committee on Gas to the NLNG facility in Bonny, Atah disclosed that there were 19 recorded pipeline disruptions this year alone.
According to him, the situation if not checked, is capable of leading to a number of unfavourable consequences such as loss of revenue for the Federal Government, potential loss of jobs and loss of status as inspirational business model and number one indigenous company in the country. On LPG supply to the domestic market, the NLNG MD said the structure is threatened, as the system encourages tax-free importation of LPG while NLNG supply is subjected to Value Added Tax (VAT), thereby frustrating the company’s effort to support and grow the local LPG market for which it already sets aside 250,000 metric tonnes annually.
The Chairman Senate Committee on Gas, Senator Bassey Albert Akpan, therefore promised that his committee will do all in its power to sustain the NLNG legacy and encourage the entrenchment of the NLNG business model in other parts of the Nigerian economy. Speaking after a business presentation by NLNG’s General Manager Production, Tayo Oginni, the Senate Committee Chairman said: “I am particularly happy with what I have seen and heard today, and I will be glad to have your comprehensive presentation slide to share with other members of the Upper Chamber to get them better informed. Read more