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Tag: NLNG

  • Falana: Why govt must not sell NLNG

    Falana: Why govt must not sell NLNG

    Lagos lawyer  Femi Falana (SAN), has urged the Federal Government and Nigerians to shoot down the proposal to sell some valuable national assets, particularly in the oil and gas sector of the economy.

    Biusiness mogul,  Aliko Dangote, the National Assembly and others had suggested that some assets, including gthe Nigeria Liquefied Natural Gas (NLNG) Limited  be sold to get the economy out of recession.

    The promoters of asset sales argued that the proceeds from such endeavour should be used to boost Nigeria’s foreign reserves.

    But in a statement in Lagos yesterday,  the activist-lawyer warned against seeling the NLNG, a lucrative subsidiary of the Nigerian National Petroleum Corporation (NNPC), which he insisted, has earned the government good revenue over the years.

    “If  all assets are sold, how would the government  fund the budgets of 2017-2019?”, he asked.

    The lawyer quoted the 2016 facts and figures of the NLNG to justify why the gas company should not be sold.

    According to him, “the total revenue from 1999 to 2015 was $90.3 billion while the figure for the last five years was $ 48.54 billion.

    “Capital investment from 1999 to 2015 was $15.6 billion while the figure for the last five years was $ 1.3 billion”.

    He said the dividend paid to NNPC (FGN) from 2004 to 2015 was $15.3 billion while the figure for the last five years was $8.74 billion while dividend (net of withholding tax (WHT), paid to other shareholders from 2004 to 2015 was $16 billion while the figure for the last five  years was $9.43 billion.

    He went further: “Gas purchase from NNPC from 1999 to 2015 was $11.8 billion while the figure for the last five years was $7.39 billion.

    “Gas purchase from ( Shell, Total , Agip and Conoco/Phillip) was $9.6 billion while the figure for the last five years $6.3 billion”

    He listed the Company Income Tax and Education Tax paid from 2011 to 2015 as $3.8 billion: PAYE – $ 334 million (from 1999 to 2015): VAT – $ 647 million ( from 2005 to 2015), state and local government area taxes – $8.1 million (from 2007 to 2015).

    He said the regulatory fess, levies among others was $ 299 million (from 1999 to 2015) while WHT  was $946 million (from 1999 to 2015).

    Besides kicking against what he called “illegal”sale of the lucrative enterprise, the activist urged Nigerians to demand for the  account of the dividend, taxes, levies  of over $33 billion collected on behalf of the Government of Nigeria by the NNPC from 2004-2015.

    The  NLNG was incorporated in 1989 and its shareholders at inception include: NNPC ( representing Federal Government of Nigeria) 49 per cent; Shell Gas BV- 25.6 per cent ; Total LNG Nigeria Limited- 15 per cent and ENI International- 10.4 per cent

    The NLNG on its own, has two wholly- owned subsidiaries, including Bonny Gas Transport (BGT) and NLNG Ship Management Limited (NSML).

  • Why FG must not sell national assets – Falana

    Why FG must not sell national assets – Falana

    Lagos lawyer, Femi Falana (SAN), has urged government and Nigerians to oppose the sale of the country’s assets, particularly in the oil and gas sector of the economy.

    Business mogul, Aliko Dangote, had suggested that the Nigeria Liquefied Natural Gas Limited (NLNG) be sold as a way out of the present economic recession.

    The Minister of Finance, Kemi Adeosun, was also quoted as saying the money realised from the sale of the company would be used to fund the 2016 Budget.

    But in a statement issued in Lagos on Tuesday, Falana said the NLNG is a lucrative subsidiary of the Nigerian National Petroleum Corporation (NNPC) which has earned the government good revenue over the years.

    He said,” If all assets are sold, how would the government fund the budgets of 2017-2019?”

    The lawyer quoted the 2016 facts and figures of the NLNG to justify why the gas company should not be sold.

    “Total revenue from 1999 to 2015 was $90.3billion, while the figure for the last five years was $48.54billion

    “Capital Investment from 1999 to 2015 was $15.6billion, while the figure for the last five years was $1.3billion,” he stated.

  • RMAFC disagrees with Dangote on NLNG, others

    RMAFC disagrees with Dangote on NLNG, others

    The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disagreed with the proposal of the President, Dangote Group, AlhajiAliko Dangote that the Nigerian Liquefied Natural Gas (NLNG) and other assets of the Federal Government be sold to raise cash to pull the economy out of recession.

    A statement endorsed by its Acting Chairman, Shettima Umar Abba Gana, explained that it would be unwise for the Federal Government to dispose of its crown jewels that generate revenue and keep the Federation Account healthy over the long term.

    The statement recalled that when the government sold petroleum marketing companies, the Nigerian National Petroleum Corporation (NNPC) was forced to establish NNPC Retail Ltd, adding that the revenue derived from the sale of some oil blocks by some international oil companies (IOCs) has not been remitted into the Federation Account.

    Similarly, the Commission noted that the government sold houses meant for ministers and members of the National Assembly as part of the monetisation policy, adding that the Federal Government might be compelled to build houses for political office holders because of rising cost, rent and security concerns.

    Citing the Nigeria Extractive Industry Transparency Initiative (NEITI) 2013 audit and financial report of the oil and gas industry, RMAFC lamented that  $12.9 billion was received by NNPC from the NLNG in eight years which the corporation did not remit to the Federation Account. The audit, according to the Commission, also revealed that NLNG paid $1.289 billion as dividends in 2013.

    “It is the considered view of the Commission that Nigeria’s assets such as the NLNG and other strategic national resources for that matter should not be sold to meet short-term financial obligation,” RMAFC warned.

    Contrary to the advice given by the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, that the government stood to realise $10 billion from the sale of these assets, the Commission said the same amount could be borrowed from the International Monetary Fund (IMF) and use the revenue from these same assets to repay the loans over the next 20 years after which the government would still retain the assets and continue to enjoy their regular annual dividend payments.

    The Commission said instead of selling off such vital assets, which generate considerable funds for the federation, wealthy Nigerians should be encouraged to set up their own LNG projects, since Nigeria ranked seventh in the world and first in Africa with natural gas reserves base totalling 188 trillion cubic feet (Tcf) as at May 1, last year.

    In addition, Nigeria’s natural gas is regarded as one of the best in the world as it has low hydrogen sulphide (H2S) or carbon dioxide (Co2) impurity levels, it added.

  • NLNG unveils 25-year plan for Bonny’s transformation

    IN fulfilment of its corporate social responsibility (CSR), the Nigeria Liquefied Natural Gas Limited (NLNG)is to transform its host community, Bonny in Rivers State into Nigeria’s Dubai or Singapore, within 25 years.

    NLNG’s immediate past Managing Director and now the Vice President, Safety and Environment (S&E), Shell Upstream International Leadership Team, Babs Omotowa, said the company  has started taking action to achieve the objective.

    Omotowa, who spoke to The Nation, before he left office on September 1,  said: “I’m happy about the work we have done in Bonny to be able to clear a lot of legacy projects that we had and the promises we made in the past.

    “Now, we have agreed to a new 25-year marshal plan, which hopefully will turn Bonny into a Dubai or a Singapore in about 25 years time. We have developed the 25-year marshal plan. We have mapped out the terms, residential area with high rise, areas that will be for tourism, agriculture, industries development.

    “Bonny has been mapped out for that, so to achieve this dream, we contribute N3 billion to a foundation every year to be able to make this dream become a reality. The memorandum of understanding (MoU) was signed last year with the community and we are working with the community to achieve that.

    “Our dream is that in about 25 years time everybody will look at Bonny and use it as a model for how community development can be actualized.”

    Barring unforeseen circumstances by the end of 25 years, the NLNG could have invested about N75 billion in the project. Besides the 25-year development plan, the gas company has shown commitment to connecting Bonny by road. Bonny, an island, is accessed only by water.

    It was learnt that the Federal Government in the 1970s an initiative to build road into Bonny but since then the project has remained in the drawing board. The NLNG, however, has offered to bear 50 per cent of constructing the road and is waiting for the government to take the step forward.

    “Road into Bonny is a Federal Government’s project. It has been in the drawing board since the 1970s. What we have done now is to offer to partner with the government to provide them (the government) with 50 per cent of the cost of the project, which is a total of about N60 billion. When the government is ready with their own fund, they can come for our counterpart fund,” he said.

    Omotowa also said stakeholders, including the government, should come together to tackle militancy in the Niger Delta region.

    He said: “The whole issues around militancy affect the entire oil and gas industry. Since 2008 when we started to see this insurgency in the Niger Delta, it has affected oil and gas generally, so I wouldn’t go to any specifics on NLNG but I will say for us as a country, this is a major issue that the country needs to tackle.

    “All the stakeholders must work together to try and find lasting solution to it for the betterment of the country. So it is an issue that we all need to pay attention to and find ways to resolve, bring all the gladiators together. I think the key thing at the end of the day is that the Niger Delta where oil and gas is produced has to be developed.”

  • NLNG: Omotowa hands over to Attah

    NLNG: Omotowa hands over to Attah

    The leadership transition at Nigeria Liquified Natural Gas Limited (NLNG) ended at the weekend in Abuja with the former Managing Director/Chief Executive Officer, Babs Omotowa handing-over the symbolic NLNG Key to his successor, Tony Attah.

    This took place at farewell and welcome ceremony held in honour of the executives, the NLNG Key changed hands, marking the formal end and the commencement of the tenures of Omotowa and Attah respectively.

    In his farewell remarks, Omotowa noted that the NLNG is an inspiration and it is changing the narrative about Nigeria; same as Daewoo in South Korea, Mercedes in Germany, Toyota in Japan, etc., while maintaining that all hands must be together to protect this jewel.

    “It has been an amazing five years that I have been privileged to occupy the position.

    I thank President Muhammadu Buhari and Vice President Yemi Osinbajo for leadership and support to NLNG. We met with the president last year and he gave us tremendous support. He was really concerned about the growth of the company.

    “I wished we implemented the growth programme with a Train 7 in play now. The increase in volume by 40% would have counteracted the 60% decline in crude oil price,” he said.

    Receiving the NLNG Key, Managing Director/Chief Executive Officer of NLNG, Tony Attah said that the company is committed to the construction of Train 7, saying that with the instability in the industry, the company has no choice but to grow value and competitiveness in the global LNG market.

    “Our reality today is that as a business, we are again faced with significant challenges from within and without. Fuelled mainly by oversupply and under performing global economies, international energy prices are once more travelling southwards. While domestically, the insecurity which bedevilled our industry and others several years ago will appear to be unfortunately returning to the headlines.

    “Today’s reality means that as a company which wants to continue being successful, we will most definitely have to think and act differently going forward. And I strongly believe-because I have seen it- that at Nigeria LNG we have the talent, the resources and most importantly, the will to continue to be successful and extraordinary.  Successful entrepreneurs go above and beyond in everything that they do. They, more than anyone else, know that without the right skills and the will to achieve their goals, there won’t be any ‘extra’ in their ‘ordinary’. That is what today holds for us all – the opportunity to do better than we did yesterday and the day before that. I believe that this is why today is called ‘the present’; it is a gift, and we must accept it with equal quantities of grace, appetite and commitment,” he said.

    He commended the NLNG Board of Directors, led by its chairman, Chief Dr LongJohn, for the continuing support, describing the directors as “leaders whose relentless creativity, commitment and zeal have served us tremendously well over the years, and whose qualities we look forward to benefitting from, well into the future.”

    On his predecessor, he said “anything other than success in Bab’s assignment five years ago would perhaps have meant that Nigeria would return to the top of the international gas flaring table. It would have meant that at NLNG, we would be wondering about who we are, corporate culture-wise. It would have meant that NNPC and other shareholders would have to look elsewhere for several billions of dollars in revenues over the years. It would have left Nigeria without approximately $6 billion in much needed taxes.”

    Speaking on behalf of NLNG Management and staff, the Deputy MD, Sadeeq Mai-Bornu, in his remarks assured the MD of support. “Be assured that I and the rest of the NLNG family welcome you with open arms, and are ready to give you all the support which enabled your predecessor to safely excel at his job. As you already know, there is not likely to be much rest, but we wish you plenty of excitement and fulfillment in the days ahead.”

    Former MD, Omotowa, left NLNG over the weekend to join the Shell Upstream International Leadership Team as Vice President Safety and Environment (S&E) at The Hague, Netherlands.

    Recall that the NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%),  Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).

    The ceremony was graced by representatives of the Federal Government, Minister of Transportation, Rt Honourable Chibuike Rotimi Amaechi and Minister of Environment, Honourable Aisha Mohammed; Rivers State Governor, Nyesom Wike, ably represented by the Rivers State Deputy Governor, Dr Ipalibo Banigo; members of the NLNG Board of Directors; Permanent Secretaries including that of the Ministry of Petroleum, Dr Jamila Shu’ara; Chief Executives and top of officials of key Government and private organizations, former NLNG Deputy MDs and dignitaries in Nigeria’s oil and gas sector and beyond.

  • Three emerge for NLNG-sponsored US$100,000 prize

    Three emerge for NLNG-sponsored US$100,000 prize

    The Nigeria LNG Limited (NLNG) has announced the shortlist of three for this year’s Nigeria Prize for Literature.

    The three shortlisted entries approved by the prize’s advisory board are Born on a Tuesday by Elnathan John, Season of Crimson Blossoms written by Abubakar Adam Ibrahim and Night Dancer by Chika Unigwe, whose novel On Black Sisters Street won the NLNG sponsored-prize in 2012. The three entries were selected from an initial shortlist of 11 which was released in July.

    The literature prize rotates yearly among four literary genres: prose fiction, poetry, drama and children’s literature. The 2016 edition is for prose fiction and comes with a cash prize of $100, 000. Next year’s prize will be for poetry.

    According to the Chairman of the board, Prof Emeritus Ayo Banjo, a total of 173 entries for the prize were received this year. “The eventual winner of the competition will be announced at a World Press Conference in October, 2016,” the board said.

    The literature prize and the Nigeria Prize for Science, NLNG General Manager, External Relations, Kudo Eresia-Eke, are some of NLNG numerous contributions towards building a better Nigeria.

    The year’s panel of judges is headed by Prof Dan Izevbaye, who is a respected literary critic and professor of Literature in English. Other judges are Prof Asabe Usman Kabir, of the Usmanu Danfodiyo University and Prof Isidore Diala of the Imo State University, who was first winner of prize for literary criticism.

  • NLNG Literature Prize final shortlist out

    NLNG Literature Prize final shortlist out

    The shortlist of three entries for The Nigeria Prize for Literature sponsored by Nigeria LNG Limited  (NLNG)  has been approved by the Advisory Board for the competition. 

    The three shortlisted entries out of the initial eleven released in July are Born on a Tuesday Tuesday (Elnathan John), Night Dancer (Chika Unigwe) and Season of Crimson Blossoms (Abubakar Adam Ibrahim).

    The shortlist was announced on Tuesday in a statement by NLNG General Manager, External Relations, Dr Kudo Eresia-Eke.

    The eventual winner of the competition will be announced at a World Press Conference in October, 2016 according to a the Chairman of the Board, Professor Emeritus Ayo Banjo.

    Born on a Tuesday, published by Parresia Books, is a story about contemporary northern Nigeria which has over the years experienced religious violence and carnage as seen through the eyes of a young man. Born on a Tuesday is Elnathan John’s first novel. John is a writer, lawyer and a Civitella Ranieri Fellow. He has also been shortlisted twice by the Caine Prize for African Writing.

    Chika Unigwe’s Night Dancer, published by Jonathan Cape, focusses on the young protagonist’s search for identity and her consequent reappraisal of her mother’s values. Chika Unigwe is a writer and the 2012 winner of The Nigeria Prize for Literature, with her novel On Black Sisters Street. Unigwe sits on the Board of Trustees of pan-African literary initiative Writivism, and was recently appointed a judge for the Manbooker Prize, 2017.

    Season of Crimson Blossoms is a novel set in conservative northern Nigeria. It focusses on unusual love affairs between characters, as well as ambiguities in religion and politics. Published by Cassava Republic Press, Season of Crimson Blossoms is Ibrahim’s debut novel. Ibrahim has won the BBC African Performance Prize and the Amatu Braide Prize for Prose. He is a Gabriel Garcia Marquez Fellow (2013) and a Civitella Ranieri Fellow (2015).

    The Chairman of the Panel of Judges is Prof. Dan Izevbaye, a well-respected literary critic and professor of Literature has been visiting lecturer at the University of Kent at Canterbury, visiting professor at University of Pennsylvania, University of Benin, and University of Fort Hare, South Africa. He has been external examiner or curriculum consultant at University of the West Indies.

    Other judges are  Asabe Usman Kabir, professor of Oral and African Literature at Usmanu Danfodiyo University, Sokoto and Isidore Diala, first winner of The Nigeria Prize for Literary Criticism and professor of African literature in the Department of English, Imo State University, Owerri.

    Other members of the Advisory Board, besides Professor Emeritus Ayo Banjo, two-time Vice-Chancellor of Nigeria’s premier university, University of Ibadan, are Prof. Jerry Agada, former Minister of State for Education, former President of the Association of Nigerian Authors, and Professor Emeritus Ben Elugbe, former President of the Nigerian Academy of Letters and president of the West-African Linguistic Society (2004-2013).

    The Nigeria Prize for Literature has since 2004 rewarded eminent writers such as Gabriel Okara for his volume of poetry, The Dreamer, His Vision (co-winner 2005 – poetry); Professor Ezenwa Ohaeto, for his volume of poetry, Chants of a Minstrel (co-winner 2005 poetry); Ahmed Yerima (2006 – drama) for his book Hard Ground;  Mabel Segun (co-winner 2007 – children’s literature) for her collection of short plays Reader’s Theatre; Akachi Adimora-Ezeigbo (co-winner 2007 – children’s literature) with her book, My Cousin Sammy; Kaine Agary (2008 – prose) for her novel Yellow Yellow; Esiaba Irobi (2010 – drama) who won the prize posthumously with his book Cemetery Road; Adeleke Adeyemi (2011 – children’s literature) with his book The Missing Clock and Chika Unigwe (2012 – prose), with her novel, On Black Sisters’ Street, Tade Ipadeola (2013 – poetry) with his collection of poems, The Sahara Testaments and Sam Ukala (2014-drama) with his play, Iredi War.

    The Nigeria Prize for Literature rotates yearly amongst four literary genres: prose fiction, poetry, drama and children’s literature. The 2016 Prize is for prose fiction and comes with a cash prize of $100, 000. Next year’s prize will be for poetry. A total of 173 entries for the prize were received this year.

    The Nigeria Prize for Literature and The Nigeria Prize for Science are some of Nigeria LNG Limited’s numerous contributions towards building a better Nigeria.

     

  • ‘NLNG’s Act repeal ‘ll jeopardise $20b  investment’

    ‘NLNG’s Act repeal ‘ll jeopardise $20b  investment’

    • Minister: NASS is patriotic

    The Nigeria Liquified Natural Gas (NLNG) has warned that any tinkering with the law guiding its activities may spell doom for the country.

    Its  Managing Director, Mr. Tony Attah warned that should the House of Representatives go ahead with its plan to repeal the NLNG Act, the company could be forced to halt its over $20 billion planned Train 7 project, which is capable of creating 18,000 jobs.

    Attah  spoke when he led a delegation of top management workers of the company on a courtesy visit to the Minister of Information and Culture, Alh. Lai Mohammed in Abuja, yesterday.

    He warned that such an action will not only portray the country in a bad light but was capable of sending investors away.

    Attah noted that the current Act provided incentives, which has enabled the take off of operation after about 30 years.

    He said: “We have few issues,  particularly with our legislators who are looking at the Act which is really the pillar of the foundation of the NNLG as a company and as an entity.

    “As we speak, there is a proposal in the House of Representatives to repeal the Act, which unfortunately will not do well, first for the company but  more importantly it will not do well for Nigeria.

    “And like I said without contradiction, that the  Act itself is an Act of parliament; that Act has enabled this investment which took more than 30 years to come to fruition. Ultimately,  NLNG as a company has been enabled only  because of the incentives in the Act, but there are guarantees and assurances  also given within the Act, which we expect to be sacrosanct and we ordinarily expect as a minimum sanctity of contract between Nigeria and the investors.

    “ So we see the attempt by the legislators to repel this Act as something that  could be very very detrimental to the country and unfortunately to some of your efforts at managing the image of this  country.

    “First and foremost, we think you will as a country, be faced with arbitration, which is a risk and reputationaly it puts you once again in the open negatively  because you are reneging on your promises. We also see potential capital flight in essence for our Train 7 which we are hoping to progress with potentially; we will be bringing more than $20billion worth of investment to Nigeria as not going to happen, because if you promise me that you will guarantee that my investment will be safe and overtime, you start to erode that, the propensity to bring more value or  investment, will of course as any business persons will do, will have to diminish, which is unfortunate.

    He reminded the minister of the the company’s contributions to the growth and development of the country, with more than $20 billion investment in the last five years.

    Responding, the minister assured the NLNG management that members of the National Assembly will never do anything to jeopardise the activities of the company.

    He said it will be very sad if anything is done to harm or slow down the success and progress of the NLNG, given it’s contributions to the economy.

    “I want to assure you that we have  an extremely patriotic National Assembly, and I have absolute confidence that they will not do anything knowingly that will lead to capital flight or mass disinvestment in Nigeria,” he said.

  • NLNG’s earnings may dip by over 50% on oil price crash

    NLNG’s earnings may dip by over 50% on oil price crash

    Nigeria Liquefied Natural Gas Limited (NLNG) earnings this year may drop by as much as $6 billion over 50 per cent, compared to 2014 earnings.

    The firm’s Managing Director, Babs Omotowa, told The Nation that the realities in the global oil and gas, especially in Nigeria, have adversely affected oil and gas operations.

    To underscore the impact of the price crash, he said in 2011, when crude oil sold for as much as $140 per barrel, NLNG earned over $11 billion, but this year, considering low oil price and some local challenges confronting Nigeria’s oil and gas industry, anticipated earnings will be about $5 billion.

    He said: “Low oil price has affected our revenue significantly because gas price follows oil price. Compared to 2014 when oil price was about $140 per barrel when we had over $11 billion, this year we might be earning about $5 billion. That is clearly more than 50 per cent reduction in revenue.

    “Oil price fluctuation is always expected, so from 2012 we had already started to plan in anticipation that oil and gas prices will come down. Since 2012 we had anticipated price crash and we have been working towards it. We have been able to take action to minimise our cost because while we cannot control oil price, we can control our cost, and improve our efficiencies.Even though we are more than 50 per cent lower in revenue, we will still be able to deliver a net income after tax of close to $6 billion at the end of the year.”

    On the impact of the renewed attacks on oil facilities by the Niger Delta militants, Omotowa said militancy affects the oil and gas industry in Nigeria and not just the NLNG.

    He said the development of the region would help in significantly reducing insurgency, urging stakeholders to collaborate to achieve that objective with the government leading the way.

    “Issues around militancy affect the entire oil and gas industry. Since 2008 when we started to see this insurgency in the Niger Delta, it has affected oil and gas generally, so I wouldn’t go to any specifics on NLNG but I will say for us as a country, this is a major issue that made the country to lower production and higher cost for the industry. All the stakeholders must work together to try and find lasting solution for the betterment of the country.

    “It is an issue that we all need to pay attention to and find ways to resolve, bring all the gladiators together. I think the key thing at the end of the day is that the Niger Delta where oil and gas is produced has to be developed. That is the fundamental cause that everybody can talk about – the devastation of the environment, poor skills, poor development and no infrastructure. We all need to work together, government especially, which has the biggest role to play in providing infrastructure, and the oil and gas industry have to support in all that effort. I think if we all can address that, it will gradually bring an end to the insurgency,” he added.

  • Omotowa to National Assembly: don’t amend NLNG Act

    Omotowa to National Assembly: don’t amend NLNG Act

    Nigeria Liquefied Natural Gas Limited (NLNG) Managing Director Babs Omotowa has cautioned against the amendment of the NLNG Act by the National Assembly.

    He said the amendment would jeopardise the take-off of the Train 7 & 8 plants of NLNG.

    He sought support for the construction of the  Trains 7 and 8 aimed at boosting gas production.

    He noted that the NLNG Act was key in enabling a project that had been in the drawer for over 35 years to be delivered; and has helped to reduce flaring by over 50 per cent, as well as delivered over $33billion to Nigeria from an investment of $2.5billion.

    Omotowa urged Nigeria to fast- tract the take-off of final investment decision (FID) on these additional trains, especially now that commodity prices are low, and that this could lower the cost of engineering, procurement and construction (EPC) as the major input, such as steel and iron ore prices, are at their lowest ebb.

    He noted that Nigeria is not rated well in the ease of doing business, citing the World Bank.The World Bank, he said, ranked Nigeria at 169th out of 189 countries in ease of doing business index 2016.

    This is a ranking we must improve on; and the executive arm of government has identified this as a priority, and it is important that our legislators understand this and support the Executive efforts in this direction, and not undermine the country as a bride in terms of attracting investments.

    The NLNG chief said: “One area to highlight, however, is that despite the need for all the reforms and to diversify the economy, we must ensure a conducive business environment.The private sector plays a key role in the development of any country, hence the Executive and Legislature must do everything to ensure we continue to attract investments (local and foreign) to help in accelerating our development as government funding alone will not be adequate.

    “An example of this is where NLNG ability to attract future investments to maintain and grow the plant is being put in jeopardy by attempts to renege on promises that Nigeria gave to foreign investors that has enabled us attract $15billion in foreign investment, and grown LNG capacity from a two-Train complex to a six-Train plant. In the construction phase alone, we employed up to 18,000 people. Future investment would even enable us and our gas suppliers employ over 30,000 people, especially in this period of high unemployment. ‘’

    Omotowa continued: “While we have received support from the Executive on the need to keep the sanctity of the NLNG Act, the periodic attempts by the Legislature to amend the clear promises made to investors will cost the country quite a lot.

    ‘’Apart from the immediate relocation of investments in excess of $25billion to other countries, Nigeria will also be opened to fines running into billions of dollars in international courts. For instance, Venezuela and Ecuador were fined over $1.8billion each for reneging on similar agreements. Financial incentives of the nature contained in the NLNG Act are not uncommon in the global LNG industry. Countries such as Qatar, Oman, Malaysia, Angola, etc have similar incentives in place.

    “Indeed, even within Nigeria, more generous incentives are contained in legislation, such as the Oil & Gas Free Trade Zone Act, as enterprises in those zones, with a view to attracting foreign investment and stimulating exports, do not pay any taxes whatsoever to the Federal, state, local governments or the Niger Delta Development Commission (NDDC) levy.”

    ‘’This is not the time to jeopardise Nigeria’s best interest by showing it as one with a people not to be trusted, and thus create a climate of unconducive business environment,’’ he added.