NLNG Dividend Falls 43% as Gas Supply Issues Persist.

Nigeria’s revenue from Nigeria Liquefied Natural Gas (NLNG) has dropped 43% due to ongoing gas supply constraints. The federal government’s actual revenue from NLNG was N46.2 billion in 2023, significantly below the target of N81.79 billion. These constraints, coupled with issues in the fiscal framework for gas production and insufficient infrastructure, are hampering NLNG’s output and expansion plans. Despite progress on the $4.3 billion Train-7 project, which aims to boost LNG capacity, challenges persist regarding future gas supply and commercial pricing. Experts recommend improving gas infrastructure, securing gas delivery, and fostering investment to address these issues and support revenue growth.