Instant Pounded Yam Production Business: Startup Requirement

Discover how to Start Poundo Yam Production. The demand for Poundo Yam in Nigeria and outside the country is very high. More »

How To Start Small Scale Poultry Farm in Nigeria (Feasibility studies)

The business of rearing of chicken and producing eggs for sale has created an opportunity for some young graduates, retired civil servants and others to earn regular income and also provide employment for countless number of Nigerians. More »

Dried Crayfish Export from Nigeria:Made Easy

Dried Crayfish is a major cooking ingredient rich in protein,most house wife and restaurants in Nigeria uses it to enrich and enhance the taste of soups and food More »

How to Start a Profitable Cement Block Molding Industry in Nigeria

.Are you thinking of starting a profitable business of your own in Nigeria? If yes then I will want you to consider setting up a cement block molding industry in the country. More »

Make millions of Naira through cashew export from Nigeria

Take Advantage of this opportunity to start exporting cashew nuts from Nigeria. More »

Bitter kola export business in Nigeria, Invest N80, 000 & make100percent profits

Do you know you can make 100percent profits when you invest just N80, 000 in exporting Bitter kola from Nigeria to Europe, America and Asia countries? More »

How to start a small scale Livestock feeds production business in Nigeria

Livestock feeds production is a very profitable business, the demand for animal feeds in Nigeria is high due to the fact that, livestock farmers can’t do with out feeding their animals except they want to go out of business. More »

Start a profitable laundry and dry cleaning business in Nigeria

Laundry and dry cleaning service is a very lucrative business opportunity you can start today in Nigeria without having cause for regrets. More »

Make Money Collecting and Supplying Scrap PET Plastic Bottles in Nigeria

Here comes a great opportunity for as many people interested in making money from the supply of Scrap PET plastic bottle to exporters in Lagos Nigeria. More »

How To Start Pure water business In Nigeria

Sachet and bottled water production is one profitable business opportunity in Nigeria that has high return on investment if well managed. More »

How to export Ginger from Nigeria and make huge profit

The ginger root is used in Nigeria mostly to produce herbal medicines and in homes to spice up food. More »

Generate Income producing Garri for export in Nigeria

Garri is one of the many products that can be processed from cassava tubers, it is a staple food widely eaten not only by the 140million people in Nigeria but, also Nigerians abroad and people of other countries in West African More »

Make Billions in The Nigeria Oil and Gas Business

Discover how Oil and gas moguls like Chief Mike Adenuga,Mrs.Folorunsho Alakija, Sanni Bello,Aliko Dangote,Chief Femi Otedola, made their endless wealth. More »

 

NLNG,NIMASA face-off: TUC seeks President Jonathan’s intervention

TRADE Union Congress of Nigeria, TUC,has implored President Goodluck Jonathan to caution Nigeria Liquefied Natural Gas Ltd, NLNG, over its alleged refusal to pay the statutory levies of 3

President Jonathan's 2013 Easter Message To the Nation-Text

 

 

 

 

 

 

 

percent gross freight on international inbound and outbound cargoes carried by NLNG vessels engaged in cabotage trade to Nigerian Maritime and Administration Safety Agency’s (NIMASA).

In a statement by its President and Secretary General, Peter Esele and Musa Lawal, TUC said: “The congress frowns at this act of ingratitude by NLNG, taking into cognizance the fact that at the inception of the LNG project in 1988/1989, the Federal Government did not only recognize the company’s pioneer status within the provisions of the Industrial Development (Income Tax Relief) Act 1971, but also magnanimously granted it a package of investment incentives including a ten-year tax holiday under the Nigeria LNG (Fiscal Incentives Guarantees and Assurances) Act Cap. N87 Laws of the Federation of Nigeria 2004 (NLNG Act) on certain conditions.

“In 1997, the office of the Commander-in-Chief of the Nigerian Armed Forces had by a letter dated 20th August 1997 conveyed through the Federal Ministry of Transport directed that NLNG should comply with the extant law at the time, being the National Shipping Policy Act of 1987 which mandated it to pay the then 2 per cent statutory levy on international inbound and outbound cargo as well as submit to routine inspection by the relevant government agencies including the then National Maritime Authority.

“The directive notwithstanding, NLNG has over the years been importing project cargo into, and exporting LNG from Nigeria, using vessels belonging to its wholly-owned subsidiary, Bonny Gas Transport Limited and other chartered third party vessels without paying statutory levies to the Nigerian government as enshrined in section 15 (a) of NIMASA Act of 2007.

This is criminal and the congress is of the opinion that LNG should pay for all the years it has circumvented the levies immediately. The Congress and of course Nigerians desire to know whether a registered company in Nigeria, local or foreign can refuse to pay tax to relevant authorities as enshrined in the law “through a veil threat” of scarcity of gas if not allowed to operate without paying statutory levies?

The Congress and of course Nigerians desire to know whether tax exemption by way of pioneer status for a fixed period that has elapsed could be a basis for refusal to pay tax? The Congress and of course Nigerians desire to know whether NLNG is right in claiming that it is not bound to honour its accrued and continuing liabilities to NIMASA under section 15(a) of the NIMASA Act 2007.

“We also want to know whether NLNG is right in claiming that it is not bound to honour its accrued and continuing liabilities to NIMASA under section 43(a) of the Coastal and Inland Shipping (Cabotage) Act 2003. The incentives granted to NLNG under the NLNG Act were not meant to be and cannot be in perpetuity.

Indeed, section 2 of the NLNG Act also embodies a rider which limits the tax holiday of the company to 10 years or when the cumulative average sales price of the liquefied natural gas reaches $3 per million metric British Thermal Units (MMBTU) as calculated in the first schedule to the Act, whichever is earlier.

From our market intelligence, as at January 2004 which was the fifth anniversary of the production of the company, the New York Mercantile Exchange (NYMEX) indicated that the price of gas stood at $9 per million metric British Thermal Units (MMBTU). This meant that as at the said January 2004, the milestone for the expiration of the exemption period had been surpassed by 200 percent in the cumulative average sales price.”

Leave a Reply