Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act
Act · Finance
An Act grants fiscal incentives and assurances to the Nigeria LNG project to encourage investment in natural gas resources. It targets NLNG Limited, its shareholders, and investors in the gas industry. This creates a stable fiscal environment to attract and sustain investments.
Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act
What Is This Policy?
Legislation that grants specific fiscal incentives, government guarantees, and assurances to the Nigeria Liquefied Natural Gas (NLNG) project and its shareholders to encourage investment in the development of Nigeria's natural gas resources for export.
Who Does It Target?
Nigeria LNG Limited and its shareholders Gas suppliers to the NLNG project Federal Government revenue agencies Natural gas industry investors
What Does It Aim to Achieve?
Attract and sustain investment in Nigeria's LNG industry by providing a stable and predictable fiscal environment, protecting investors from adverse changes in law, and granting tax concessions that make the project commercially viable.
Key Features
Tax Holiday: Initial ten-year tax-free period from the date of first LNG export Pioneer Status: NLNG designated as a pioneer industry with associated income tax relief Dividend Tax Exemption: Exemption from withholding tax on dividends during the tax-free period Import Duty Relief: Exemption from customs duties on equipment and materials for the LNG project Guarantee Against Nationalization: Government assurance against expropriation of the project's assets
Current Status
Rollout Stage: Active, governing the fiscal regime for NLNG Coverage: Nigeria LNG Limited project on Bonny Island Lead Agency: Federal Ministry of Finance and Federal Ministry of Petroleum Resources Beneficiary: NLNG and its shareholders (NNPC, Shell, Total, Eni)
How to Access
The Act applies specifically to the NLNG project. Access the Act through the Official Gazette and legal databases NLNG investors rely on the Act's protections for investment planning
Official Resources
Website: nlng.com Contact: Nigeria LNG Limited, Bonny Island / Abuja Office
Legal Framework
Enacted under Section 4 of the 1999 Constitution. Operates alongside the Petroleum Industry Act 2021 (formerly Petroleum Act), the Companies Income Tax Act 2004, the Deep Offshore and Inland Basin Production Sharing Contracts Act, and relevant bilateral investment treaties protecting the Nigeria LNG project investment.