The Nigeria Liquefied Natural Gas Limited posted a revenue decline of N646.6bn ($2.12bn at N305/$ official exchange rate) in its 2016 financial year. It was gathered that the fall in the gas company’s revenue was largely due to the crash in crude oil prices globally in the year under review.
Crude prices crashed from over $100 per barrel in 2014 to as low as $23 in 2016, a development that threw many oil dependent countries into economic crisis. The NLNG’s revenue had continued to fall since 2014. It plunged from $10.79bn in 2014 to $6.84bn in 2015 and further dropped to $4.72bn in 2016.
Data from the firm’s financials from 1999 to 2016 showed that the decline in its revenue since 2014 resulted in corresponding reduction in the dividend to the NNPC, pay-as-you-earn, withholding tax, local contracts for goods and services, as well as dividend to Shell, Total and Eni.