By Abuja The House of Representatives has resolved to investigate the non-reporting and non-remittance of Equity Liquefied Natural Gas (LNG) to the Nigerian National Petroleum Company Limited (NNPCL).
This decision followed a motion moved by Hon. Nnamdi Ezechi, representing Ndokwa East/Ndokwa West/Ukwuani Federal Constituency, during plenary on Wednesday.
Presenting the motion, Ezechi recalled that Nigeria LNG Limited (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 percent.
The lawmaker further noted that NNPC LNG Limited, incorporated in 2012 in the Cayman Islands as a subsidiary of NNPC Limited, was established to manage the sale of liquefied natural gas on behalf of the group.
Ezechi, however, expressed concern that the financial transactions, statements, and operations of NNPC LNG Limited in the Cayman Islands have not been transparently reported to either NNPC Limited or NLNG.
“This lack of transparency has resulted in potential non-remittance of dividends, taxes, and other statutory payments due to the Federal Government of Nigeria,” he said.
He added that certain unauthorized deductions were allegedly being made from NLNG proceeds — including sales from Equity LNG — without formal disclosure or federal approval, raising serious concerns of financial impropriety and potential loss of national revenue.
House Also Probes Oil Firms’ Non-compliance with Host Communities Fund
In a related development, the House also directed its Committee on Host Communities to investigate the failure of oil and gas companies to remit 3% of their annual operating expenditure to host communities as mandated by the Petroleum Industry Act (PIA) 2021.
The resolution followed a motion sponsored by Hon. Hart Cyril Godwin from Rivers State, who cited Section 235(1) of the PIA, which requires every licensee or lessee (settlor) operating within or near any host community to incorporate a Host Communities Development Trust Fund for the benefit of those communities.
Godwin decried the non-compliance of several oil firms with Sections 235 and 236 of the Act, saying some companies had failed to establish or fund the trust, while others had blatantly refused to comply with the law within the stipulated period.
“This continued disregard for the law has hampered development in the host communities where these companies operate,” he said.
The House thereafter mandated its Committees on Host Communities and Petroleum Resources (Upstream and Downstream) to conduct an in-depth investigation and ensure full compliance with the provisions of the Petroleum Industry Act.
