‘Not Lifted Yet,’ NLNG MD Says Nigeria Force Majeure Still In Place 4 Years On

▪️Force Majeure; What It Means And How It Works In Contracts: NOP NIGERIA simplifies the popular business terminology and answers to the and-then-what questions aboutit

The force majeure put in place by the biggest gas exporter in Nigeria, Nigeria LNG Limited (NLNG) about four years ago has not been lifted, Managing Director of the company, Adeleye Falade, has told NOP NIGERIA.

Force majeure refers to extraordinary events that are outside of a company’s control and that prevent it or both parties from fulfilling obligations in a contract.

Fielding questions from NOP NIGERIA during the presentation of the company’s Facts and Figures 2026 in Lagos, Falade, who declared that the force majuere is still in place, maintained that some factors that led to its declaration have not fizzled out.

NOP NIGERIA earlier reported that the force majuere left several industry experts increasingly worried about the mounting headwinds plaguing the country’s economic lifeblood: the oil and gas sector.

The Nigeria LNG Limited (NLNG), owned by the federal government of Nigeria and three international oil companies, has seen its output decline owing to gas supply constraints.

The NLNG had on October 17, 2022, declared a force majeure on product supplies from its production facilities on Bonny Island, following the declaration of force majeure by all its upstream gas suppliers, NOP NIGERIA earlier reported.

It said the notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production that caused a significant disruption of gas supply.

The force majeure, the first in over a decade and the second in the company’s 24 years of operations, has persisted amid a global demand boom, especially in Europe, that propelled the prices of liquefied natural gas (LNG) to unprecedented heights.

“The force majeure is still in place,” Falade declared, adding; “some of the factors that led to that are still in place.”

Born Same Day, Steering Nigeria’s Energy Future Same Time: Tale of The Falade Twins

Maintaining that the company is still bullish about its expansion plans despite the force majeure, Falade maintained that the declaration is a key prerequisite for the market and customers of the company.

He added that the Train 7, a key expansion by the gas giant has already hit 93 per cent, signalling a healthy transaction by the company, which, he added, had paid $10 billion in taxes to the Nigerian government.

What is. Force Majeure

A “force majeure” — is a legal term from French that means “superior force.” It has been adopted by global businesses in terms of their obligations in contract.

What it means

Force majeure refers to extraordinary events that are outside of anyone’s control and that prevent one or both parties from fulfilling a contract.

Think: things no one could have predicted or prevented.

Common examples
1. Natural disasters: earthquake, flood, hurricane, wildfire
2. Acts of war/terrorism: war, civil unrest, terrorism
3. Government actions:: new laws, sanctions, export bans, lockdowns
4. Pandemics & health crises: COVID-19
5. Other major disruptions: strikes, cyberattacks, power grid failure

How it works in a contract

Most contracts have a “Force Majeure clause”. It basically says:

“If one of these major events happens and we can’t deliver, neither party will be held liable for breaking the contract.”

NLNG Hits $149.6bn Revenue Milestone, Pays $10.8bn Tax As Train 7 Reaches 93% Completion

The NLNG, Falade continued, has generated $149.6 billion in revenue since operations began, and paid $10.8 billion in taxes to the Federal Government since becoming tax compliant in 2009.

He described the numbers as evidence of NLNG’s role as “a success story in Nigeria’s energy sector.”

NLNG Hits $149.6bn Revenue Milestone, Pays $10.8bn Tax To Nigeria

“We have made $149.6 billion in revenue by 2026,” Falade said. “$10.8 billion has also been paid in tax to the Federal Government right from the time we became tax compliant.” He added that the company has also remitted $47.2 billion in dividends to shareholders, including the Federal Government, which holds the largest stake.

Bullish operations

The NLNG boss said the company currently operates six liquefaction trains with an asset base valued at over $22.9 billion. It has also built a fleet of 20 dedicated LNG ships and has loaded more than 6,285 LNG cargoes for global markets since inception.

SPE Decodes 37 New Oil Blocks’ Execution As Nigeria Targets 3m bpd Output Mark

On global relevance, Falade noted that NLNG contributes 6% to the world’s total LNG supply pool, positioning Nigeria as a key player in the international gas market despite domestic challenges.

A major highlight of the 2026 report is the progress on Train 7, NLNG’s expansion project on Bonny Island. Falade said the project has now reached 93% completion stage and is on track to become one of Africa’s largest LNG expansions.

Adeola Yusuf, PhD: Profile of A Prolific Pen-Pusher

“Train 7 will surge our LNG production by 35%,” he stated. “The project will also increase our LPG production by 50%.” The additional volumes are expected to strengthen Nigeria’s export earnings and domestic gas supply.

Domestic market and Cooking Gas Intervention

Beyond exports, NLNG is playing a critical role in Nigeria’s domestic energy transition. Falade said the company supplied 500,000 tonnes of cooking gas, LPG, to the Nigerian market last year alone, helping to deepen access to cleaner cooking fuel.

He linked the company’s operations to a sharp reduction in gas flaring nationwide. According to him, NLNG’s gas gathering and utilization model has helped crash Nigeria’s gas flare rate from 65% to less than 20%.

Falade also highlighted NLNG’s impact on public health and infrastructure. He noted that over 470,000 Nigerians die annually from illnesses linked to firewood and other dirty cooking fuels. The company’s LPG push, he said, is directly addressing that burden.

The CSR Investment

On Corporate Social Responsibility, the MD cited the completion of the N120 billion Bonny-Bodo Road as one of Nigeria’s biggest CSR projects. The 40km road, he said, provides the first mainland connection to Bonny Island and has transformed movement and commerce in Rivers State.

Despite the milestones, Falade admitted that gas supply remains NLNG’s biggest challenge. “One of our great challenges was gas supply. Last year was extremely bad for us,” he said. He however expressed optimism that supply conditions have improved this year.

Industry analysts say the completion of Train 7 will be critical to locking in new LNG contracts and meeting rising global demand, especially in Europe and Asia. The additional 35% LNG and 50% LPG capacity will also ease domestic shortages.

After NOP NIGERIA Report, Oil Ministry Director Queried, Minister Disowns Claim

After NOP NIGERIA’s Exclusive Report, ICPC Picks El-Rufai, DSS Waiting for Turn

With over two decades of operations, NLNG remains Nigeria’s flagship gas company and one of the largest single contributors to government revenue outside crude oil. Its model of monetizing associated gas has also been cited as a template for reducing flaring.

As Train 7 nears completion, Falade said NLNG’s focus for the next decade will be on reliability, expansion, and deepening domestic impact. “The success story continues,” he said. “Our goal is to deliver more energy, more revenue, and more value to Nigerians.”

NOP NIGERIA