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Tag: NLNG

  • ‘Why NLNG disburses funds for CSR projects with caution’

    ‘Why NLNG disburses funds for CSR projects with caution’

    The Nigeria Liquefied and Natural Gas Limited’s (NLNG’s) decision to follow due process, especially in disbursing of funds for Corporate Social Responsibility (CSR) projects, such as building of roads and hospitals, among others, is borne out of the need to avoid illegalities, its Chief Executive Officer, Babs Omotowa has said.

    He said other factors included the need to avoid making illegal payments, or a repeat of the Halliburton’s scandal in the country.

    Speaking at a forum in Lagos, Omotowa said the firm was cautious of giving money for projects construction in the Niger Delta region without due diligence and accountability.

    He said NLNG cherishes its name in Nigeria and beyond, and as a result, wants to see where and what its money is being spent on. “NLNG has partnered the Niger Delta Development Commission (NDDC) before on issues bordering on the growth of the region. The issue is about the interest of the Niger-Delta.  Our aim is to transform the region by making it an industrial hub like Dubai.

    “We are executing more projects in the Niger-Delta than any other company. I cannot see any company who has offered N60 billion to build road. I do not know any company that has done the kind of thing we have done in Bonny. We provide N3billion every year to develop the town.

    “However, we want to see where our money is spent. The N2billion each given to six federal universities for the construction of laboratories was well monitored. We have offered NDDC an option in the area of roads and hospitals in the Niger-Delta that are not covered in the budget. We told them to partner with us (NLNG) on those projects,” he added.

    Omotowa said NLNG cannot defy court order by paying money to NDDC for projects it has executed in the region. “But if you want us to pay you as against what the court has decided, that amounts to illegalities.  If you remember the Halliburton case, we don’t want such issue again. When you make illegal payments, if the world gets to know, it will affect the image of the company involved. There is nothing more corrupt than that. We are willing to work with them (NDDC) provided a due process is followed. Right from 2007, my predecessors have offered NDDC opportunities to work with them,” he added.

  • 173 authors in race for NLNG $100,000 prize

    173 authors in race for NLNG $100,000 prize

    The race is on for this year’s edition of the Nigeria Prize for Literature sponsored by Nigeria LNG Limited. This year’s award focuses on the Prose Fiction genre. It has 173 authors gunning for its most coveted $100,000 prize.

    This year’s entries were yesterday handed over to the panel of judges by the prize’s advisory board chair Emeritus Prof Ayo Banjo at a ceremony in Lagos.

    Although there was no winner for its Children Literature category last year, the prize’s sponsor and the advisory board are optimistic, saying this year promises to be interesting, “considering the entries we have got which is lower than the number in the last cycle of prose fiction competition”.

    They, therefore, enjoined the judges led by the distinguished Professor of English Language of Prof Dan Izevbaye of Bowen University to continue the tradition of excellence and integrity the prize is known for.

    “Today, we hand over the 173 entries received for this year’s edition of the competition and I have strong confidence that with their (the judges) very rich knowledge, experiences and competence, the process will again throw up a book of high quality,” Banjo said.

    According to NLNG’s General Manager, External Relations, Kudo Eresia-Eke, the submissions would be pruned based on editorial excellence, creativity and story plot, with the aim that a final winner may emerge in October to coincide with the anniversary of the company’s first shipment of LNG cargo.

  • 173 authors in race for NLNG $100k literary prize

    173 authors in race for NLNG $100k literary prize

    The race is on for this year’s edition of the Nigeria Prize for Literature sponsored by Nigeria LNG Limited which focuses on the Prose Fiction genre.

    It has 173 authors gunning for its most coveted 100,000 prize money.
    This year’s entries, which came in response to a call for entry published in February, were Wednesday handed over to the panel of judges the prize’s advisory board chair Emeritus Prof Ayo Banjo at a ceremony in Lagos.
    Although there was no winner for its Children Literature category last year, the prize’s sponsor and the advisory board are optimistic, saying this year’s promises to be interesting, considering the entries we have got which is lower than the number in the last cycle of prose fiction competition.
    They, therefore, enjoined the judges led by the distinguished Professor of English Language of Prof Dan Izevbaye, Bowen University, to continue the tradition of excellence and integrity the prize is known for.

    “Today, we hand over the 173 entries received for this year’s edition of the competition and I have strong confidence that with their (the judges) very rich knowledge, experiences and competence, the process will again throw up a book of high quality,” Prof Banjo said.
    According to NLNG’s General Manager, External Relations, Kudo Eresia-Eke, the submissions would be pruned based on editorial excellence, creativity and story plot, with the aim that a final winner may emerge in October to coincide with the anniversary of the company’s first shipment of LNG cargo.
    The last winner of the literature prize in the Prose Fiction category was Chika Unigwe in 2012 who beat 213 authors to the prize, which was established in 2004, with her book On Black Sisters’ Street.

    This year’s prose fiction award will run concurrently with NLNG’s prize for literary criticism which has two entries. It was introduced in 2013 and carries a monetary value of N1 million.
    Alongside Prof Izevbaye, who was one of the earliest members of the panel judges when the prize started, the award will be adjudged by Prof Asabe Usman Kabir, a professor of Oral and African Literatures at Usman Danfodiyo University, Sokoto and Prof Isidore Diala, a professor of African Literature at Imo State University, Owerri and first winner of the award for Literary Criticism. Prof Kojo Senanu of the University of Legion is the international consultant.

    Other members of the board are Emeritus Prof Ben Elugbe and Prof Jerry Agada.

  • How to solve power sector problems, by NLNG chief

    How to solve power sector problems, by NLNG chief

    Nigeria should adopt an all-inclusive approach to solve the myriad of problems of the power sector, the Managing Director/Chief Executive officer, Nigeria Liquefied Natural Gas Limited (NLNG), Mr. Babs Omotowa, has said.

    He said gas-to-power has become a problem in the industry, urging stakeholders, including the Federal Government, to proffer solution to problems in generation, transmission and distribution of electricity.

    He canvassed the exploration of opportunities in the grid and off-grid systems of power generation and also leverage on the strengths of the six geo-political zones through their resources, such as coal, wind, solar, water and gas, among others, to improve power supply.

    Omotowa said the country needed a holistic approach to solve its energy problems since it has tried various methods in the past, without success.

    He said: “A more comprehensive approach to resolving problems in the power sector is what Nigeria needs at this moment. There is the need to look at the energy strengths of each of the geo-political zones for growth.  For instance, states such as Benue, Kogi, Plateau, and others within the Middle Belt zone rely on hydro power, and should be allowed to use hydro power sufficiently.

    “The Eastern part of Nigeria should rely on coal because of the abundant coal deposit in the area, to solve the energy needs of that zone. The Southern part of the country especially the South-south should rely on gas, which means that turbines would operate optimally in that area, once there is gas infrastructure. A lot of the demands for gas are in the South-western part of the country, especially Lagos and Ogun axis. They have thermal plants and some of these plants are operating sub-optimally due to lack of gas. The power plants should be linked to gas pipelines to power the turbines. There are huge but unexplored opportunities in the country.”

    Omotowa urged stakeholders to give more attention to issues such as citing of power plants where gas facilities are, and the evacuation of electricity generated from the plants to the grid, adding that they are crucial to the growth of the sector.

    According to him, it is one thing to build power plants side by side with gas facilities, it is another thing for the plant to have capacity to take or evacuate the power generated to the grid citing Afam VI as an example.

    He said: “Afam power plant, for example, is cited close to a gas facility and today it generates 650 megawatts (Mw) of electricity. However, the grid cannot take all the megawatts of electricity generated by Afam. May be the grid takes about 300Mw or thereabout. Alaoji is another one power plant with similar problems. Having considered all the issues listed above, it is safer to conclude that an all embracing approach is what Nigeria needs to solve its energy problems.”

    He said the need to provide facilities that would help in evacuating electricity to the grid for onward distribution to customers is imperative for the growth of the sector.

    The industry is battling shortage of gas, poor power generation and distribution. This has resulted in poor supply of electricity.  To resolve the problems, the Federal Government embarked on upward review of gas price to ensure competitiveness, ensures effective policing of gas pipelines to forestall vandalism,among other initiatives. However, the problems persist.

  • NLNG in fresh bid to settle tax dispute with NIMASA

    NLNG in fresh bid to settle tax dispute with NIMASA

    THERE are fresh plans to settle the tax dipute between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas Limited (NLNG). The issue has lingered since 2013.

    NLNG Managing Director/Chief Executive Officer, Babs Omotowo told The Nation that the company plans to urge the Transportation Minister Rotimi Amaechi and NIMASA Director-General Dakuku Peterside to engage the lawyers handling the case to fast-track it so that the court will give its judgment and end the feud.

    Omotowa said: “We have met with the Minister of Transportation, Rotimi Amaechi and explained the situation to him. He was keen to see how he can work and get NIMASA to work with us to get the case resolved because for us, the more important thing is to resolve the case.

    “Whatever the court says will stand. If the court says we are right, we do it, and if it says we are wrong, so be it but at least let there be a legal decision on it.

    “Amaechi was supportive of trying to work with us to be able to get the lawyers to let the case be heard and that way it will be followed up. Now that there is a new director-general in NIMASA, we plan to meet with him and the minister to get all the lawyers to let the case be heard and not just continue to linger.”

    NLNG and NIMASA had been locked in legal battle since 2013 over the issue of non-payment of certain statutory levies and charges which NIMASA claims are due to it from the NLNG. NIMASA wants to be collecting the three per cent of gross freight earnings or any other sums further to section 15(a) of NIMASA Act 2007 on all of NLNG’s international inbound or outbound cargo ships.

    The NLNG (fiscal incentives, guarantees and assurances) Act gave a pioneer status to the Company and Section 2 gave it a tax relief period of 10 years. As stated, “Notwithstanding the provisions of section 10 of the Industrial Development (Income Tax Relief) Act, the tax relief period of the company shall commence on the production day of the company and shall continue for a period of 10 year. However, the tax relief period shall terminate when the cumulative average sales price of liquefied natural gas reaches $3 per Million Metric British Thermal Units as calculated in the First Schedule to this Act in accordance with which such calculation shall only be made annually at each anniversary date.”

    The NLNG Act further states: “Without prejudice to any other provision contained herein, neither the Company nor its shareholders in their capacity as shareholders in the Company, shall in any way be subject to new laws, regulations, taxes, duties, imposts or charges of whatever nature which are not applicable generally to companies incorporated in Nigeria or to shareholders in companies incorporated in Nigeria.”

    The Act establishing NIMASA – that is NIMASA Act 17 of 2007 merged the National Maritime Authority and the Joint Maritime Labour Industrial Council (JOMALIC).  Section 2 (1) of the Act states: “This Act shall apply to ships, small ships and crafts registered in Nigeria and extend to ships, small ships and crafts flying a foreign flag in the exclusive economic zone, territorial and inland seas, inland waterways and in the ports of the Federal Republic of Nigeria. But it further said that, “This Act does not extend to warships and military patrol ships,” which are the only ships exempted from NIMASA’s jurisdiction.

    On funding of NIMASA, the Act provides that the organisation, “Shall be funded by monies accruing to it from three per cent of gross freight on all international inbound and outbound cargo from ships or shipping companies operating in Nigeria among others.”

     

  • NLNG workers donate N30m materials to IDPs

    NLNG workers donate N30m materials to IDPs

    Staff of Nigeria LNG Limited (NLNG), through the company’s ‘Let’s Care Initiative’, have donated relief materials worth over N30million to Internally Displaced Persons (IDPs).

    This is in addition to the award of scholarships worth N10million per year for 10 pupils each in Borno, Yobe and Adamawa states for five years.

    The initiative, established last July, is aimed at providing comfort and succour to the IDPs, as the Federal Government records success in addressing the insurgency and resettling displaced persons.

    The General Manager, External Relations Division, Kudo Eresia-Eke said over 100 NLNG staff volunteered to raise funds for the project.

    Distribution of relief materials was carried out in two phases last October and this month with the National Emergency Management Agency (NEMA), the States’ Emergency Management Agency (SEMA), and Non-Governmental Agencies (NGOs), such as MUNA and Heeba Foundations.

    The camps they visited include ICCM Benin Camp, Edo State; Kabusa and Kuchingoro Camps in Abuja; Konduga, Mafa Road Muna Park and Gubio Road Housing Estate IDP camps in Bornu State; Damare, St Theresa and Malkoni camps in Adamawa State; and Bukar El-kanemi and Pampomari IDP camps in Yobe State.

    The sponsor of the initiative, Mr. Isa Inuwa, said:  “Let’s Care IDP initiative’ is about awareness and reaching out. It is underpinned by the concepts of gratitude and humanity in all of us.”

    He added: “What you see as the end results of the efforts, sacrifice and generosity of so many, are the truck-load of relief materials our staff take to the camps themselves to distribute. In addition to material contributions, the effort has created awareness about the plight of the IDPs who have been displaced for no fault of theirs.

    “We have witnessed an unprecedented demonstration of empathy and a deep sense of compassion towards humanity by many staff. Along with other well-meaning Nigerians, we must continue to give the IDPs hope that tomorrow is going to be better and get them back a normal and decent life.’’

  • NLNG bags CSR Excellence award

    NLNG bags CSR Excellence award

    Nigeria LNG Limited (NLNG) has been recognised for the outstanding impact of its $12million pan-Nigeria University Support Programme (USP,) with  the Excellence Award by the Abuja Chamber of Commerce and Industry (ACCI).

    The award is given to companies, whose Corporate Social Responsibility (CSR) projects impact society without benefit to the company, said the Manager, Communication and Public Affairs, NLNG, Tony Okonedo, in a statement.

    In a ceremony in Abuja, the ACCI said after research and comprehensive analysis from highly professional team of business intelligence experts, NLNG was selected for the Excellence Award for its CSR work especially its pan-Nigeria University Support Programme (USP).

    Receiving the award on behalf of the Managing Director and Chief Executive Officer of NLNG, the General Manager for External Relations, Kudo Eresia-Eke, said: “We are very pleased to receive the Excellence Award for CSR from the Abuja Chamber of Commerce. There are different dimensions to this award. Firstly, this is a testament to our core values which guides our work. We stand on the values of Integrity, Teamwork, Excellence and Caring. It is great to see that these values have worked for us in our behaviour and interaction with our stakeholders, our operations, our CSR projects and in fulfilling our vision of helping to build a better Nigeria.

    “On the other hand, our success and award will inspire other companies to emulate us and even do it better than we have done. The award reminds us of the need for companies to think broadly in CSR terms for purposes of moderation and balance in the nation. Balance is what ensures durability.”

    ACCI President, Mr. Tony Ejinkeonye, said: “Neither integrity nor excellence was compromised in choosing Nigeria LNG Limited. You merit it by all relevant parameters and that is why you are being awarded. Your works and actions were judged fairly and you were chosen with nothing but the principles of excellence and integrity. Your organisation gives us a lot of hope for the future of our nation.”

    The University Support Programme (USP) is a $12million project approved by the Board of NLNG to give structured support to the development of research and scholarship in the country. Through this project NLNG is building and equipping engineering/technical laboratories with cutting-edge engineering equipment in six universities drawn from Nigeria’s geo-political zones in support of teaching and research.

    The six universities, Ahmadu Bello University, University of Port Harcourt, University of Nigeria, Nsukka, University of Ilorin, University of Ibadan and the University of Maiduguri, were selected following research which established their top rankings in the country. The research was backed by the National Universities Commission (NUC).

    Ahmadu Bello University, one of the selected universities, has already launched its laboratory in November 2015.

  • Aisha Buhari names new NLNG’s ship

    Aisha Buhari names new NLNG’s ship

    The wife of the President, Mrs. Aisha Buhari  has named a new ship owned by Bonny Gas Transport (BGT), a subsidiary of Nigeria LNG Limited (NLNG), LNG Abuja II.

    The naming of the new ship by Mrs. Buhari was done in her capacity as the vessel’s Godmother.

    At a ceremony in Geoje Island, South Korea, Mrs. Buhari with top executives and directors of NLNG and BGT conducted the ceremonial naming of the 175,000m3 ship, which will carry LNG from Bonny Terminal to customers around the world.

    The General Manager, External Relations Division of NLNG, Mr. Kudo Eresia-Eke said LNG Abuja II is the fifth ship to be commissioned from the six newly acquired vessels by NLNG. It is also the third ship by Samsung Heavy Industries (SHI). In 2013, BGT signed a contract with SHI and Hyundai Heavy Industries (HHI) for the construction and delivery of four and two ships.

    Mrs. Buhari said: “It was with great delight that I received the invitation of the management of Nigeria LNG Limited to be the God-mother of and commission this magnificent new vessel; one of five recently purchased.

    “The new ships, I learnt, are part of a growth programme, which will ensure that NLNG continues to develop its capacity and enhance its reputation as one of the most reliable gas suppliers in the world. I am, therefore, very pleased to be the new ship’s Sponsor Lady and Godmother. By tradition, the Sponsor Lady bestows good luck on the vessel and the crew, and I wish to assure you all, that this vessel will go out into the world, proudly flying Nigeria’s flag and be an enduring symbol of the partnership and cooperation between our two countries for many years to come.”

    The Managing Director/Chief Executive Officer NLNG, Babs Omotowa said: “As we take possession of this great ship, we can reflect on the double symbolism of today’s event. Our country and the LNG business are both experiencing some difficult times. It is altogether fitting and symbolic that our country and our company are by this ceremony reaffirming our faith and confidence in a bright and prosperous future for our country as well as our industry.  This new vessel bearing the name of Nigeria’s capital city is a sign of that confidence and that is what this ceremony represents for us.

    “We take pride in the fact that LNG Abuja II is truly Nigerian. Based on Nigeria LNG’s local content aspirations, we have become the first Nigerian company to incorporate unique local content component into the construction of our vessels. Courtesy of this local content programme, over 600 young Nigerians acquired specialised skills in shipbuilding.

  • Buhari’s wife unveils LNG ABUJA 11

    Buhari’s wife unveils LNG ABUJA 11

    Wife of the President, Mrs Aisha Muhammadu Buhari has unveiled a new vessel of the Nigeria Liquified Natural Gas company billed to add to the fleet of the organization .

    While performing the “naming ceremony “in Seoul South Korea on Thursday ,Mrs Buhari said the acquisition of the new vessel, named LNG ABUJA 11, was an additional impetus to the growth of export related businesses that will improve revenue generation for Nigeria .

    “For example ,more than $10 million dollars was generated from the export of quality Nigerian materials to Korean shipyards ”

    According to her ,among other recorded achievements ,the relationship of the two countries was quite in line with the goals of the present administration of furthering the development of human capital and job creation .

    She  expressed confidence that despite challenges in the global energy sector, Nigeria and South Korea will continue to occupy important positions with respect to international energy security and development .

    Although Nigeria is undergoing a process of transformation for improved quality of life of the people , she said it  became absolutely necessary to provide avenues for businesses to achieve their full potentials to compete grow and deliver long term value.

    “I stand by this principle because that is how great countries like South Korea were built”.

    The wife of the President commended the NLNG for the new stride and noted that nothing makes her proud than the knowledge that Nigerians and Nigerian companies actively participated and benefited directly from the construction of the new (ship) vessel .

    While noting that the ship has Nigeria written all over it, she expressed hope that participating companies in the sector will continue to export to shipyards across the world and make Nigeria to shine in every shore for increased economic development .

    The vessel ,Named LNG ABUJA 11 is billed for the fleet of the NLNG and specifically for BONNY GAS COMPANY ,a subsidiary of the NLNG Ltd .It was built by SAMSUNG AND HYNDAI  HEAVY INDUSTRIES South Korea .

    Nigeria produces 22 million tonnes of LNG per annum sold to  North America and Europe by the ships.

    Wife of the president. Mrs Aisha Muhammadu Buhari with members of the Korean International Cooperation Agency (KOICA) in Seoul. South Korea
    Wife of the president. Mrs Aisha Muhammadu Buhari with members of the Korean International Cooperation Agency (KOICA) in Seoul. South Korea

     

  • Senate tackles NLNG, Ecological Office for not funding NDDC

    Senate tackles NLNG, Ecological Office for not funding NDDC

    The Senate yesterday opened an investigation into alleged non-remittance of statutory contribution to the Niger Delta Development Commission (NDDC) by some government agencies.

    The Committee on Niger Delta grilled officials of the Nigeria Liquefied Natural Gas (NLNG) Limited and the Ecological Fund Office.

    Committee Chairman Senator Peter Nwaoboshi told reporters that the money due to the NDDC from the NLNG and the Ecological Fund Office, which they allegedly refused to pay for over 16 years, is huge.

    He described the development as an abuse of the law setting up the NDDC.

    Nwaoboshi said: “It is not whether they contributed certain percentage. The point is that they had refused to obey the law since 2000.

    “The next step the committee would take now is to invite the accountant general of the federation and investigate the matter to know why the two agencies had not been remitting what is due to the NDDC to it.

    “We are conducting a holistic investigation into the activities of the NDDC. What we want to do is to find out claims  that huge sums had been given to the Niger Delta through the NDDC with nothing on ground.

    “We want to know how much the agency had received 2000 to date. What are the projects they have executed with the money.

    “We want to know those who are contributing to the agency. We have asked the Managing Director of the NLNG, Mr Babs Omotowa, and he said they have not been contributing money to the NDDC.

    “They showed us a Supreme Court judgment, which described NLNG as a gas processing company and that there is a Gas Act that came before that of NDDC Act.

    “They argued that the NDDC Act has not repealed the Gas Act. The NLNG claimed the Gas Act has given them tax holiday.

    “We are lawmakers and we are going to revisit the two Acts. We will go into the root of the matter.

    “We don’t just make laws for the purpose of making it. Laws are meant to be obeyed. If government agencies and institutions refuse to obey the law, why do we talk about the rule of law?

    “Laws made by the National Assembly should be obeyed. Everybody is complaining that the NDDC is not performing but are they receiving the due funding especially from the oil companies.

    “The oil companies are supposed to pay three per cent of their budget to NDDC but they are giving less than that.

    “When they came before our committee, I read out the Act to them and some of them started apologising.

    “They said they thought that they were supposed to pay three per cent of the projects they execute in their communities.

    “There has been a total disregard and respect for the NDDC Act and nobody will allow that.”

    The Permanent Secretary, Ecological Fund Office, Mr. Mohammed Abass, said his office made contributions but not to the NDDC.

    He noted that the Ecological Fund Office spends only the money approved for it by the President for design and drawing.

    He added that the NDDC never approached the Ecological Fund Office to ask for statutory funding.

    Abass said: “Our office receives one per cent of the approved money due to the consolidated fund, which is the Federal Government’s share of the federation account.

    “Every other state receives one per cent of the fund too. The account is called derivation and ecology.

    “The Fiscal Allocation Committee shares two per cent of the funds in the federation account to federal, states and local governments.

    The Federal Government receives 48.5 per cent, states 24 per cent while the local governments get 20 per cent. The Ecological Fund Office manages the Federal Government share.

    “Therefore, the Ecological Fund Office is not supposed to fund any state from its own resources because every state gets its share of the allocation from the federation account.’’