Kunle Kalejaye 01 February 2017, Sweetcrude, Lagos – The National Executive Council, NEC, of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has kicked against the proposed amendment of the Nigeria Liquefied Natural Gas, NLNG, Company Act.
NEC of PENGASSAN said part of the proposed amendment to the act will damage the country’s image, impede much-needed foreign investments, lead to immediate loss of $25 billion and 18,000 jobs, in addition to a potential loss of income in taxes and dividend to the government and shareholders, among others.
Highlights of the proposed amendment to the NLNG Act include deletion of government’s undertaking to honour the shareholders agreement of the company and other contemplated contracts, deletion of assurances by government to retain agreed fiscal and security regime of the investment, and extension to NLNG of three percent contribution of the total annual budget of the company, payable only by upstream companies to the Niger Delta Development Commission, NDDC.
In a communiqué signed by its President, Comrade Francis Olabode Johnson, and acting General Secretary, Comrade Lumumba Okugbawa, PENGASSAN explained that NLNG succeeded largely due to the provisions of the NLNG Act which gave investors the confidence to invest in the country but stressed that with the proposed amendment, that confidence would be eroded while critical ongoing and future investments would be jeopardised.
