NDDC Levy Not Applicable to Nigeria LNG

Nigeria LNG (NLNG) issued a statement after recent news reports about a demonstration by youths purported to be affiliated to a body calling itself Niger Delta Youth Stakeholders Forum, over the company’s alleged refusal to pay a three percent Niger Delta Development Commission (NDDC) levy.

“For the avoidance of doubt, this levy is inapplicable to NLNG, a position which has the backing of decisions of the entire spectrum of courts in Nigeria, culminating in a Supreme Court ruling delivered in October 2011,” the company said in a statement.

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

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. The Supreme Court subsequently dismissed NDDC’s appeal.  The basis of the judicial determination of these courts in favour of NLNG is that the Company is not subject to the NDDC levy, taking into account the correct interpretation of the provisions of the NDDC Act 2000.

“It is instructive to note that when the representatives of the demonstrators were invited into 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 said.

“As an international company owned by the following shareholders – the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV, SGBV (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A) N. V. S. a. r. l (10.4%) – NLNG wishes to emphasize that it continues to conduct  its businesses in full compliance with the laws of the Federal Republic of Nigeria and applicable tax regulations.

“It is on record that the company – consistent with its role as a responsible corporate citizen, helping to build a better Nigeria – recently made early payment of Corporate Income Tax for 2013, far in excess of that paid by any other corporate entity in the country. It also paid Education Tax (Tertiary Education Trust Fund) for the corresponding period,” NLNG added.

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Press Release, June 4, 2014