NLNG Act amendment will lead to double taxation, reduced investments

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The Nigeria LNG Limited (NLNG), has warned that any amendments to the NLNG Act would lead to double taxation considering that gas suppliers to NLNG already pay the Niger Delta Development Commission (NDDC) 3 per cent levy, The Sun reports.

General Manager, Production, NLNG, Mr. Tayo Oginni, stated this while briefing international media correspondents and the Managing Director of the News Agency of Nigeria (NAN), Mr. Bayo Onanuga, during a plant facility visit to NLNG in Bonny, Rivers State. He argued that the development was inimical to the progress of the oil and gas industry, especially when the country should be developing its vast gas resources and attracting Foreign Direct Investments (FDIs) into the country.

Recounting his experience with the NLNG project, he said the loss of hope experienced prior to the incorporation of NLNG is again manifesting itself in NLNG’s bid to expand its production facility with Trains 7 and 8 as a result of lack of investment in the upstream sector to guarantee gas supplies. He called on the Federal Government to preserve the sanctity of agreement in the NLNG Act and pass the Petroleum Industry Bill (PIB) to spur exponential growth in the oil and gas industry in the country.