Nigeria Liquified Natural Gas Company, NLNG, paid the Federal Government a dividend of N188 billion in the fiscal year ended December 2020.
This is according to the information contained in the Ministry of Finance Budget implementation report for the period of January 2020 to December 2020 and presented by the Minister for Finance Dr Zainab Ahmed.
During the year, the Federal Government budgeted a sum of N80.3 billion as its share of dividends from NLNG, however, the actual sum received as its share was N188 billion, N63.2 billion more or 79% higher than projected.
The year 2020 was a difficult year for the government as the fall in crude oil prices and the economic shutdown that was triggered by the Covid-19 Pandemic dented projections and ravaged revenues. he dividend received from NLNG was a major bright spot in the government’s revenue performance for the year.
During the year, the government projected revenue of N5.36 trillion but only received N3.9 trillion in revenues representing a shortfall of N1.4 trillion or 27% for the year.
The huge dividend windfall received in 2020 is a stark contrast from 2017 when Nigeria just exited a recession triggered by falling oil prices and a sharp exchange rate devaluation.
In that year, the Federal Government’s share of dividends from Nigeria Liquefied Natural Gas (NLNG)dropped by as much as $687 million, from $1.04 billion in 2015 to $365 million in 2016, a 65% drop.
The N188 billion received in 2020 topped the amount received from signature bonuses only N78.2 billion and complimented the N192 billion received by VAT.
It is the most effective form of revenue generation for the government.