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NLNG Says Act Amendment Illegal Without Shareholders’ Consent



Leadership Nigeria News Today

The Nigeria Liquefied Natural Gas (NLNG) Limited’s Fiscal Incentives, Guarantees and Assurances Act has been said to have been amended without following the laid down process stipulated in the Act.
Any amendment to the Act would be contrary to the Rule of Law.
General manager, External Relations at NLNG, Dr Kudo Eresia-Eke, asserted this while responding to the sponsor of the NLNG Act Amendment and member of the House of Representatives, Hon Leo Ogor, during a live television programme, Focus Nigeria, on African Independent Television (AIT).
Ogor had earlier stated that the Guarantees and Assurances in the Act were not tampered with adding that the only amendment contained in the bill as passed by the House of Representatives was to include the payment of  three per cent levy to the Niger Delta Development Commission (NDDC) levy to make the Act compliant with the NDDC Act.
In reaction to the statement by Ogor, who incidentally is the sponsor of the bill, Dr Eresia-Eke expressed surprise that the amendment as passed by the House explicitly inserted the three per cent NDDC levy, and deleted the Guarantees and Assurances contained in Paragraphs 1, 2, 3 and 6 of the 2nd Schedule of Act, while Ogor alleged on the programme that there were no Guarantees and Assurances deleted.
He remarked that this unilateral amendment would easily result in the loss of Train 7/8, and further jeopardise similar projects requiring investor confidence such as Brass LNG and OK LNG.
Eresia-Eke reiterated that with a rating of 169th out of 190 on the Global Ease of Doing Business Index, Nigeria would further weaken its position to attract foreign investments by worsening the already bad situation through an amendment of the NLNG Act outside of due process.
Notably adding his voice to the debate during the AIT programme, the former Speaker of the House of Representatives, Alhaji Ghali Umar Na’Abba, remarked that it would be ‘dishonourable’ for the House to amend the NLNG