Enhancing the Economy in a Sustainable Manner
Economic Impact
We reported a 4% increase in gas sales from 828mmscm in 2021 to 836mmscm in 2022, despite challenges in the gas supply chain. Additionally, we received an upward revision by Global Credit Ratings (GCR) of our national scale long-term issuer rating of A- from Stable to a Positive Outlook. We are focused on expanding our pipeline infrastructure in existing and new markets, recently completing a 7.3km pipeline as part of the Sagamu expansion project and starting construction on a 7.7km pipeline to GL 5 Phase 1 in Greater Lagos Industrial Area. We prioritise safety, health, and quality standards and have achieved 6.9 million LTI Man-Hours.
We place a high priority on fairness, integrity, and transparency in our business dealings. The company assesses all operations and processes for risks related to corruption, including bribery, conflict of interest, collusion, patronage, and lack of whistle-blowers' protection. To mitigate these risks, we have implemented strong controls, including relevant policies and procedures, third-party contract terms and due diligence, whistleblowing platforms, and monitoring and auditing activities.
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Our Economic Impact
(₦ '000)
₦0,0,0
Turnover
₦0,0,0
Retained in Business
Tax Transparency
We have incorporated tax compliance into our corporate strategy and aim to adhere to all tax laws and regulations related to our business. We minimise our tax exposure within the confines of the law, ensure timely payment of tax and statutory obligations.
The Financial Controller, who reports to the Chief Financial Officer (CFO), oversees tax management. We prioritise regulatory compliance and recognise the importance of tax compliance in the oil and gas industry, which generates a significant portion of government tax revenue. We employ qualified tax experts and engage tax consultants to evaluate tax risks and ensure zero tolerance for non-compliance.
We maintain cordial relationships with tax authorities, respond promptly to correspondences, and allow access to our books when necessary.
We value regulators as partners in our business and maintain good relationships with all tax authorities related to our business. We attend regulatory forums and hearings to advance our positions on tax policies. We consider stakeholders such as employees, shareholders, vendors, and regulatory bodies and hold meetings to collect and consider their views in optimising our tax processes. Regulatory bodies also conduct audits periodically.
More about our tax transparency
Our Tax Figures
₦0,076,0,000
Profit/loss before tax
₦0,0,055,0
Corporate income tax paid on a cash basis
Engaging with suppliers
To manage the impact of materiality in the supply chain, our company ensures that our Code of Business Conduct and Ethics and other social and environmental requirements are aligned. We also consider the long-term trajectory of climate change and remain flexible to respond to changes in the business environment. To guarantee the quality of materials, we require mill tests or Factory Acceptance Test (FAT) certificates upon delivery, conduct material inspections before delivery, and embed key performance indicators (KPIs) in the service contract.
Our company spends 92% of our procurement budget on local suppliers, defined as those based in Nigeria. We also consider the country of operation when defining significant locations. In 2022, we registered 43 new suppliers and screened all of them using environmental and social criteria. We are proud to report that there were zero negative social impacts because of our procurement practices.