Nigeria’s Revenue Crisis Sets To Worsen As NLNG Declares Force Majeure Over Gas Supply Disruptions By Flood

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Nigeria’s revenue crisis and gas shortage challenges appear set to worsen, after one of the country’s main foreign exchange earners, the Nigeria Liquefied Natural Gas (NLNG) Limited, declared force majeure on its 22.2 million ton per year Bonny LNG export facility.

Nairametrics gathered that the multinational gas firm took the action due to widespread flooding that has disrupted supply.

The development is coming as Nigeria battles its worst floods in about a decade, with no fewer than 500 people reported to have been killed and billions of naira worth of properties damaged.

Nigeria’s Revenue Crisis Sets To Worsen As NLNG Declares Force Majeure Over Gas Supply Disruptions By Flood

The NLNG disclosed the development in a statement issued and signed by its General Manager in charge of External Relations and Sustainable Development, Mr. Andy Odeh.

The declaration could worsen Nigeria’s financial crisis and put further pressure on the global gas supply, as Europe and other major economies struggle to replace Russian gas exports.

Andy Odeh said, “The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG.’’

He noted that NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.

Source: Nairametrics