NLNG: FG Records Worst Share Dividend In Decade

By Teddy Nwanunobi

Abuja (Sundiata Post) — The Federal Government has recorded the worse share dividend from the Nigerian Liquefied Natural Gas (NLNG) in a decade, as its shares dropped from as much as $1.04 billion in 2015 to $356 million in 2016.

The above figures represent a 65 percent drop in the shares dividend.

It would be recalled that the Federal Government recorded the highest share dividend in 2012, when it received $2.7 billion, followed by 2008, when it received $2.6 billion and 2011, when the sum of $2.5 billion was paid.

In the last 13 years, the sum total of share dividend paid by NLNG to the Federal Government amounted to $15.7 billion.

This year’s low dividend reflects the lower price environment in the global oil and gas industry caused by an oversupply of the commodity.

Furthermore, the low prices and weaker demand caused buyers to take a wait-and-see approach to long-term supply contracts according to analysts.

Nigeria, the biggest natural gas exporter on the continent and fourth largest in the world now faces increasing competition from other suppliers including Angola, who was expected to return to the market in early 2016, after ceasing exports in 2015 due to repairs.

Following the relative stability seen in the market since the fourth quarter of 2016, it was expected that natural gas prices may have stabilised.

Also, the lower gas prices have resulted in greater demand for gas by new natural gas importing nations. According to the International Gas Union (IGU), 4 new gas importers were added to the market in 2015 and one extra in 2016, leading to an expansion of the market.

The NLNG, according to stakeholders, remains a very valuable and efficient asset of the Federal Government.

The Federal Government, through, the Nigerian National Petroleum Corporation (NNPC) owns 49 percent shares in NLNG.

Other shareholders are Royal Dutch Shell, Total and Eni International, which own 25.6 percent, 15 percent and 10.4 percent, respectively.

MTN News Alert
DMON
To receive our mobile newspaper on MTN delivered on your phone, text SAWD to 4900 at N50 per week or SAMD to 4900 at N150 per month.
For information on press releases, photos, promotional events and adverts, call or send text to 08173460599 or 08094208271or send email to: info@sundiatapost.com

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D
Email: info@sundiatapost.com
Website: www.sundiatapost.com

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838
https://twitter.com/sundiatapost/

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
ACCREDITED MEMBER
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate