NLNG Corporate Caring banner First bank SME Connect Fidelity bank card banner Emerald Energy Institute Camano banner

Don’t amend NLNG Act, Management begs Senate •Says it will destroy Nigeria’s No. 1 Company

By News Express on 11/05/2017

Gmail icon

Views: 1,128


The management of the Nigeria LNG Limited says the proposed amendment of the enabling law of the establishment as being considered by the National Assembly, will not be in the interest of the country.

In a statement issued on Wednesday in Lagos, Dr. Kudo Eresia-Eke, NLNG General Manager, External Relations Division, recalled that “the House of Representatives on May 9, 2017, passed a bill seeking to amend the Nigeria LNG Limited (NLNG) Act (Fiscal, Guarantees, Assurances, and Incentives) subjecting the company to 3% Niger Delta Development Commission (NDDC) levy. We understand that this bill will be progressed to the Senate.”

The company considered the passage of the law a huge error as it is a direct collusion with the Federal Government’s drive to attract Foreign Direct Investment (FDI), stating the following reasons why these amendments are not in the interest of Nigeria:

“PULLING DOWN NIGERIA’S NO 1 COMPANY

NLNG is proudly the country’s biggest and most successful indigenous company, run by 100% Nigerian Management and over 95% Nigerian staff, yet competing effectively globally. It is today the country’s highest tax payer and the 4th largest supplier of LNG in the whole world. NLNG is a pride to Nigeria and the nation’s flagship corporation whose model is being considered for replication in various sectors of the economy. But the fact that the company is being targeted by this amendment while fellow gas purchasers and processors in other businesses such as fertilizer, petrochemical, and electricity are left untouched, gives the world the impression that Nigeria would rather drag down than support its best.

“THREAT TO NLNG’S CONTINUED EXISTENCE

NLNG succeeded largely due to the provisions of the NLNG Act, which gave investors the confidence to invest in the country. But with an amendment, that confidence will be eroded and jeopardize critical ongoing investments for the continued survival of the company; critical among which is the $1 billion needed annually for the next three years to guarantee the current operation of six existing Trains.

“DISCOURAGE INFLOW OF FOREIGN INVESTMENT  

After 35 years of unsuccessful effort, NLNG could only be incorporated upon the enactment of the NLNG Act which then enabled the establishment of the company. To thus amend the basis of the investment in Nigeria will obviously breach the promises of Government to its co-investors. This will badly damage the reputation of the country, its credit rating, and ability to attract or even retain future investments.

“LEAD TO LOSS OF $25 BILLION INVESTMENT   

Any amendment will also mean an immediate potential loss of foreign investment of US$25 billion in respect of Trains 7 and 8 investments (US$15 billion by the gas producing and supplying companies [Upstream], and US$10 billion for construction of the project).

“LEAD TO LOSS OF 18,000 POTENTIAL JOBS

The expected 18, 000 construction jobs for Trains 7 and 8 will also be lost if the Act is amended. This is at a time when the Niger Delta, and the country at large, is in dire need of jobs. Needless to mention the impact of such a huge number of jobs on the peace of the Niger Delta region and the economy of the country.

“REVERSE GAIN IN GAS FLARING REDUCTION

NLNG purchases gas from upstream suppliers, who already pay 3% NDDC levy, which would have otherwise been flared. The company has almost single-handedly caused the reduction of gas flaring from about 65% in 1999 to about 20% currently. With the required investment, NLNG is capable of reducing that figure even further upon the completion of the Trains 7 and 8 Project.

Any Amendment will however ultimately result in a return to high flaring if NLNG ceases to exist with attendant negative impact on the Niger Delta environment.

“CONSTRAIN NLNG’S DEVELOPMENT INITIATIVES IN THE NIGER DELTA

NLNG has a robust and sustainable development programme in the Niger Delta which will of course cease if the company dies. This company supports the provision of 24-hour power supply on Bonny Island, provision of water supply, construction of roads, schools, scholarships etc. costing nearly US$200 million so far.

Furthermore, NLNG recently committed to providing billions annually towards the development of Bonny Kingdom for the next 25 years to turn Bonny into a mini Dubai.  It also recently offered major financial support to the Federal Government towards the construction of the Bodo-Bonny Road – a vital road neglected for decades, expected to link the mainland through Ogoni, Andoni, etc. to Bonny. With these legislative constraints, breaking fundamental promises to investors, the company would definitely begin to pine away and the Niger Delta region would be a prime loser.” 

Source News Express

Posted 11/05/2017 12:59:04 AM

 

 

CLASSIFIED ADS

 

You may also like...
Alaibe dumps APC, returns to PDP with supporters...

Igbo film forum Nollywood to honour Ebelechukwu Obiano,...

Onigbinde, Onanuga, others for Nigerian Online Publishers’ First...

DSS grills Ikeja (Lagos) Oba-elect

Cryptocurrency craze leads to new DDoS tactics

Over 1,000 arrested in Gabon post-election violence

2017 Guber Poll: Stop using Ojukwu’s name to...

Trump hosts Buhari, others

2019: We are battle-ready, says Tinubu •Rallies APC...

EFCC drags Babachir Lawal, Ayo Oke and wife...

Murder Case: Detained activist clears Imo Deputy Governor...

Rivers 2019 Guber: Tonye Cole unveils running mate...

 

Latest News IGP redeploys seven Police Commissioners •The affected states and their new CPs Only digital revolution will save Nigeria — Obi •Challenges Nigerian youth Boko Haram, collaborators hibernating in FCT, other cities ― Report Army releases emergency numbers for ‘Exercise Atilogwu Udo 1’ Bayelsa guber: Court grants APC stay of execution ― Sylva El-Rufai kneels, begs Kogi people to forgive Governor Bello Re-opening of borders: Nigeria, Benin, Niger set up committee ‘Multiple victims’ confirmed in school shooting near Los Angeles Bayelsa/Kogi: Buhari tasks INEC, security officials on good conduct Kogi/Bayelsa polls: Police ban orderlies to governors, politicians, vehicles without number plates Kidnapped Appeal Court Judge regains freedom Facebook takes down billions of fake accounts

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (562,075 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (451,998 views) Shameless Genevieve Nnaji exposes breasts in public (400,998 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (335,138 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (303,337 views) 10 cars more expensive than Jets (280,176 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (258,608 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (256,754 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (238,245 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (224,589 views) Lagos plane crash: Journalist releases victims’ names (201,213 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (197,965 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (108) Business & Economy (4,569) Business Verdict (86) Columnists (1,143) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (703) Features (844) Global Business Monitor (493) ICT Monitor (67) International (4,204) Interview (211) Live Commentary (30) Love Matters (176) Maggie's Blog (481) News (53,948) Opinion (1,418) Pidgin (17) Politics (11,722) Religion (1,118) Sports (2,224) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera