By Mercy Gadia Adi
The House of Representatives has ordered an investigation into the operations and financial dealings of the Nigeria Liquefied Natural Gas (NLNG) and NNPC LNG Limited over allegations of non-reporting and non-remittance of proceeds from the sale of Equity Liquefied Natural Gas to the Federal Government.
This followed the adoption of a motion sponsored by Hon. Nnamdi Ezechi, member representing Ndokwa/Ukwuani Federal qaqConstituency of Delta State, titled “Need to Investigate the Non-Reporting and Non-Remittance of Equity Liquefied Natural Gas (LNG) to NNPC Limited.”
Presenting the motion during plenary on Wednesday at the National Assembly, Hon. Ezechi expressed deep concern over what he described as opaque financial practices and weak corporate accountability within the operations of NNPC LNG Limited, a subsidiary of NNPC Limited registered in the Cayman Islands.
He explained that the Nigeria Liquefied Natural Gas (NLNG) was incorporated in 1989 as a joint venture between NNPC Limited, Shell, TotalEnergies, and Eni, with NNPC holding the largest equity share of 49%.
According to him, “NNPC LNG Limited was incorporated in 2012 in the Cayman Islands as a subsidiary of NNPC Limited to manage the sale of liquefied natural gas on behalf of the group. However, its financial operations, transactions, and statements have not been transparently reported either to NNPC Limited or to NLNG itself.”
Ezechi noted that this lack of transparency has likely resulted in “non-remittance of dividends, taxes, and other statutory payments due to the Federal Government of Nigeria.”
The lawmaker added that there are troubling reports that “certain deductions are allegedly being made from NLNG proceeds, particularly from the sale of Equity LNG, without formal notification or approval of the Federal Government.”
These practices, he warned, “raise serious concerns of financial impropriety, weak corporate accountability, and possible loss of national revenue. They undermine public trust, compromise fiscal transparency, and could significantly affect government revenue at a time when the nation’s economy is in dire need of every legitimate earning to drive development.”
Ezechi urged the House to take urgent steps to ensure that all revenues due to the government from NLNG and its equity sales are fully accounted for.
Following extensive deliberations, the House of Representatives mandated the Committee on Gas Resources to conduct a comprehensive investigation into the operations, financial reporting, and remittances of NNPC LNG Limited with respect to NLNG.
The committee is expected to report back to the House within four weeks for further legislative action.