Proposed amendment of NLNG Act misplaced priority – TUC

The Trade Union Congress of Nigeria (TUC) has described the proposed amendment of the Nigerian Liquefied Natural Gas (NLNG) Act by the House of Representatives as a misplaced priority and unacceptable.   TUC  president, Comrade Bobboi Kaigama, stated this in Lagos, weekend, that  the proposed amendment would impact negatively on the image of Nigeria, as […]

The Trade Union Congress of Nigeria (TUC) has described the proposed amendment of the Nigerian Liquefied Natural Gas (NLNG) Act by the House of Representatives as a misplaced priority and unacceptable.  

TUC  president, Comrade Bobboi Kaigama, stated this in Lagos, weekend, that  the proposed amendment would impact negatively on the image of Nigeria, as the international community would perceive Nigeria as a country that does not honour its promises.  

According to him, the proposed amendment can directly affect some $25 billion worth of foreign investments as well as another 18,000 Nigerian jobs linked to NLNG’s Train 7 and 8 expansion programmes.  

“This will negate the job creation and job security policy being propagated by the current administration. The National Assembly’s proposed action will also not only affect recent gains made in the area of gas flaring which has reduced from 65% to less than 20%, but lead to the loss of up to $124 million annually payable as taxes and dividends to the Federal Government. NLNG is a made-in-Nigeria company competing globally and has been a huge success so far,” he added.

He urged the Federal Government to step up security of  oil and gas infrastructure to curb pipeline vandalism and the attendant crude oil and petroleum products theft.

He advised government to ensure that the four state-owned refineries work at optimum capacity, while private investors are encouraged into local refining and explore a way of incorporating, streamlining and regulating operators of illegal refineries as a way of boosting local refining. 

He lamented that after the takeover of the power sector by the new investors, not much has been achieved, even with continued government subsidies.  

He said, “Since the return to civilian rule in 1999, governments have spent on average about $2 billion annually on electricity provision, but with little service improvements to show for it. The highest we have got in terms of generation is 5,075 Megawatt.”   

He stressed the need for the new owners to make strategic investment in facilities to ensure constant supplies of gas to these plants.