The Senate has issued the Nigeria Liquefied Natural Gas, NLNG one-week ultimatum to produce all details showing its payments of dividend and other taxes to the Nigerian government since it commenced business.
The lawmakers were angered by a new report by ActionAid Nigeria, a non-governmental organisation, which revealed how Nigeria lost $3.3 billion (about N650.1 billion) in seven years to questionable tax exemption granted by the government.
The NLNG was not only exempted from paying 30 per cent corporate income tax, CIT, on its profits for five years between 1999 and 2004, but refused to commence payment after the period of approved exemption lapsed in 2009 until 2012.
The report also indicated that the NLNG has not even paid the $1.15 billion it was supposed to have paid in 2012.
The report said the exemption, which cost the country about $3.2 billion (about N630.4 billion), also covered a range of other taxes, including about $141 million (about N27.8 billion) being two per cent of its profits as education tax earmarked by the government for the advancement of education in Nigeria.
Following the report, the NLNG, through its general manager, External Relations Division, Kudo Eresia-Eke, disputed the figures in the report, pointing out that the initial investment of $2.5 billion by the Nigerian government had grown into a $16 billion plant with the tax incentives it received.
Apart from a yield of over $33 billion in the form of dividends, taxes and feed-gas purchases for the country over the past 16 years, Mr. Eresia-Eke said the company realised additional $ 5 billion through corporate spend on local goods and services during the same period.

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