Seplat Energy pays $2bn tax to FG in 10 years

Seplat Energy, an independent indigenous energy company, said on Tuesday it had paid a two-billion-dollar tax contribution to the Federal Government of Nigeria since its listing on the Nigerian Exchange Ltd. (NGX) in 2014.

Mr. Roger Brown, Chief Executive Officer (CEO) of Seplat Energy, revealed this while delivering a speech at the Closing Gong ceremony in Lagos.

The event was to commemorate the company’s 10-year anniversary of dual listing on the Premium Board of the Nigerian Exchange Ltd. (NGX) and the Main Market of the London Stock Exchange (LSE).

Brown stated that the oil and gas company Seplat also contributed 2.8 billion dollars as tax to the federal government over the past 13 years, after its establishment in 2009.

He explained that the company paid 1.54 billion dollars as royalty to the government, 329 million dollars as petroleum profit tax, 273 million dollars as value-added tax, and 259 million dollars as withholding tax.

According to him, the energy firm also paid a tax of 276 million dollars to the Nigerian Delta Development Commission (NDDC) and others, as well as 126 million dollars as Pay-As-You-Earn (PAYE).

The CEO stated that after the initial public offering (IPO) of the firm, it generated 1.7 billion dollars in free cash flow (FCF) and invested 1.6 billion dollars in Capex.

He also said that the company had paid dividends worth 575 million dollars between 2014, when it became listed, and the financial year ending in 2023.

Brown noted that the business of the energy firm continued to generate strong cashflows, reflected in its strong FCF and NCFO generation.

He said, “Similarly, we have generated a cumulative 3.3 billion dollars in net operating cash flow post-IPO.

“Our strong cash flow generation has supported our ambitions to expand our business, which has seen us spend an aggregate of 1.6 billion dollars in capital expenditure.

“In over 10 years, we invested 57 million dollars in community projects on health, education, and empowerment as a strong commitment to community development.

“As a leading supplier of gas to Nigeria’s domestic gas-to-Power market, at times Seplat gas powered 20 to 30 percent of Nigeria’s domestic grid in 2023.”

He expressed delight over the feat, reiterating Seplat Energy’s commitment to leading Nigeria’s energy transition.

According to him, the power of indigenous companies is to bring growth and prosperity to their home countries and the people.

“One example of how Seplat Energy is making an enduring difference to Nigeria and host communities where we operate is that nearly 50 million dollars have been invested by our joint venture partnerships in communities since our inception to date,” Brown said.

“Truly, Seplat Energy has delivered significant value by enhancing strategic, operational, and financial achievements in 10 years as a listed company,” he added.

In his comments, Mr. Temi Popoola, Chief Executive Officer (CEO), NGX Group, emphasised the significance of Seplat Energy’s decade of dual listing.

He said, “If we were to look back to our market and try to find landmarks, the last major landmark you will find in the last ten years is this transaction that we are celebrating today, and the market is very grateful for that.”

Congratulating Seplat Energy on this milestone, in his welcoming remarks, Alhaji Umaru Kwairanga, NGX Group Chairman, highlighted the importance of partnerships between the NGX and companies like Seplat Energy in driving economic growth and development.

He stated that “Seplat’s journey symbolises resilience, innovation, and a commitment to excellence, making them a beacon of corporate governance and operational expertise.

“Seplat Energy has emerged as a leading indigenous energy company, deeply integrated into Nigeria’s economic landscape, and the NGX Group remains committed to supporting companies like Seplat Energy as they drive economic growth and contribute to our nation’s prosperity.”

Reflecting on the significance of the decade of dual listing, Mr Udoma Udo Udoma, Board Chairman, Seplat Energy, remarked, “Seplat Energy is committed to driving Nigeria’s transition to sustainable and affordable energy, harnessing its power to improve lives by transforming the economy.

“We have ambitious goals. We are investing in Nigeria. We will support the federal government’s energy transition policy, and we will partner with FG in whatever area they want us to do.

“That is our commitment. We will grow Seplat while also maintaining the highest standard of corporate governance.”

Also commending Seplat Energy on the decade of listing, Mr Jude Chiemeka, Acting CEO, NGX, stressed the importance of the capital market in helping companies raise funds and create wealth for all.

Chiemeka said, “Seplat Energy was listed at N576 at listing and yesterday it closed at 3,370, which is an increase of over 484 per cent.

“The figures show that in the last 10 years, the company has paid out 575 million dollars in dividend payments to shareholders in Nigeria and London where they are also listed.

“So, this company has given investors a huge opportunity to really participate in wealth creation.

“Reports show that Nigeria would be among the top 20 countries in the next 25 years, and I think Seplat is poised to be one of the institutions driving growth, prosperity, and inclusion in our nation.”

Also, gracing the Closing Gong ceremony was Sen. Heineken Lokpobiri, Minister of State, Petroleum Resources (Oil), who commended the company on it laudable achievements.

“I am happy to be part of today’s celebration and Seplat’s exceptional performance in the last ten years and as Minister of State, Petroleum Resources,

“I assure you that we will partner with Seplat to expand their investments, not only for the benefit of its shareholders, but also for Nigeria.

“The least the government can do anywhere in the world is to create an environment where companies like Seplat continue to thrive.”