Nigerian Liquefied Natural Gas Company Limited (NLNG) money woes

Nigerian Liquefied Natural Gas Company Limited (NLNG) money woes

THE Nigerian Liquefied Natural Gas Company Limited (NLNG) which was last week blocked from exporting gas as a result of N25 billion debt owed the Nigerian Maritime Administration and Safety Agency (NIMASA) is contemplating the declaration of a force Majeure to salvage its external contracts.
The company came under NIMASA hammer last week following its failure to pay up the balance of the N25 billion debt owed the agency after it has paid about N3.3 billion of the total debt.
NIMASA said its decision to block NLNG’s imports and exports was due to its desire to implement the laws of Nigeria and ensure all organisations operating within the company obey the laws of the land.
Sources in the shipping industry told the Nigerian Tribune on Wednesday that the management of the NLNG had contemplated the declaration of Force Majeure (Act of God) in view of its failure to meet contractual obligations.
NLNG had in a statement last week stated that the decision of NIMASA authorities to block its exports were inimical to the Nigerian economy and global gas market.
It stated that NLNG accounts for four percent of the country’s Gross Domestic Product(GDP).
Said a source: “Yesterday (on Tuesday) the NLNG , came close to declaring a force majeure. Since it is under contractual obligation to its customers to deliver gas on fixed dates, a force majeure, would have relived it of those obligations.”
It was, however, gathered that some top management members later advised against the decision since the blockade was not brought about by accident which could qualify as an act of God.
“The company was advised internally not to, as its dispute with NIMASA was not an accident or a force of nature,” the source said, adding that there is enough scope within the Nigerian judicial system to solve the problem.

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