NLNG Exempts From NDDC’s Levy

The Nigeria Liquefied Natural Gas Limited (NLNG) has reiterated its exemption from payment of the three per cent Niger Delta Development Commission (NDDC) levy by the NLNG Act of 2004. It was further backed by a 2011 Supreme Court ruling.

The NLNG was reacting to a report about a demonstration by youths purported to be affiliated to a body that called itself the Niger Delta Youth Stakeholders Forum, over the company’s alleged refusal to pay the three percent NDDC levy.

Its General Manager, External Relations, Kudo Eresia-Eke, said: “Nigeria LNG Limited’s attention has been drawn to recent news report about a demonstration by youths purported to be affiliated to a body calling itself Niger Delta Youth Stakeholders’ Forum, over the company’s alleged refusal to pay a three percent Niger Delta Development Commission (NDDC) levy.

“For the avoidance of doubt, NLNG was granted exemption from payment of this levy by the NLNG Act of 2004, a position which has the backing of a Supreme Court ruling delivered as early as 2011. Following an initial suit filed by the NDDC, the Federal High Court on July 11, 2007 delivered judgement stating that NLNG was not liable to pay the NDDC levy.

“NDDC then proceeded to challenge the High Court ruling at the Court of Appeal. The Appellate Court also ruled in NLNG’s favour. NDDC appealed further to the Supreme Court in October 2011. The Supreme Court subsequently dismissed NDDC’s appeal, ruling that NLNG is legally exempted from paying the NDDC levy in accordance with the provisions of the NLNG Act.

It is instructive to note that when the representatives of the demonstrators were invited into a meeting with NLNG management and presented with this fact, they claimed to be unaware of it. They then immediately undertook to go back and inform the crowd of demonstrators numbering about 40. The protesters dispersed shortly afterwards.

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