Nigeria’s Gas Company Is Losing Money
One of the Nigerian government's cash cows, the Nigeria Liquefied Natural Gas Limited, is losing money.
The company, which was created to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas and Natural Gas Liquids for export, saw its revenue rise to $11.592 billion, about 5 trillion Naira in 2012.
The NLNG is owned by the Federal Government, represented by the Nigerian National Petroleum Corporation with ownership stake of 49%, while other international oil companies such as Shell owned 25% stake. Others include: Total LNG Nigeria Limited, 15% and Eni 10.4%.
The decline is not entirely surprising. It follows the sharp decline in crude oil prices.
The NLNG’s revenue reportedly dropped from $10.791 billion, about 4.3 trillion Naira in 2014 to $6.843 billion, about 3 trillion Naira in 2015.
As a result, dividends to the NNPC plunged from $1.044 billion, about 400 billion Naira in 2015 to $356.127 million, about 142 billion Naira in 2016, the lowest in 10 years, according to the ‘Facts and Figures on NLNG 2017’ released on Wednesday.
The international oil companies also had to endure a sharp cut in their dividend earnings as they got $380.959 million, about 150 billion Naira in dividends, down from $1.117 billion, about 400 billion Naira that they got in 2015.
The Managing Director and Chief Executive Officer, NLNG, Tony Attah, while presenting the document in Lagos, noted that the company took a beating from the fall in crude oil prices in the global markets.