TUC condemns the proposed amendment of NLNG Act

The Trade Union Congress (TUC) has joined those that are kicking against the proposed amendment of the Nigerian Liquefied Natural Gas  (NLNG) Act. The President of TUC, Comrade BobboiBalaKaigama, stated in a communique issued at the end of a meeting of the Central Working Committee  (CWC) of the union at the weekend.

According to him, “NEC in session viewed with the greatest sense of responsibility the implication of the proposed amendment to the Nigerian Liquefied and National Gas Act (NLNG Act), such as deletion of Government’s undertaking to honor the Shareholder Agreement of the Company and other contemplated contracts.

“Deletion of assurances by Government to retain agreed Fiscal and Security Regime of the investment, extension to NLNG of three per cent contribution of the total annual budget of the company, payable only by upstream companies to Niger Delta Development Commission (NDDC).

“Therefore, the house condemned the amendment because it will damage the country’s image and harm the much needed foreign investment bearing in mind the implication for security and the attendant job loses w ith its effect on the citizenry.”

It would be recalled that the House of Representatives has just passed the bill aimed at amending the NLNG Act with lots of criticism from the public.

Recently, Hon. Simon Yakubu Arobo, a member of the House of Representatives Committee on Gas stated that “So much has been said and written about the proposed amendment of the NLNG (Act). First, the NLNG as an entity did not come into being through an Act of Parliament.  It was incorporated as a company in 1989. In December 1990, because the government wanted to give it a pioneer status, incentives and guarantees, the government then promulgated decree no 39. And the caption of the decree is NLNG Fiscal Incentives, Guarantees and Assurances Decree 1990.”

He explained that the government at that time backdated the decree to take effect from April 24, 1989.

“Now, the NLNG with all these descriptions is a gas producing company. They have made that fact. Because it’s a gas producing company and it operates in the Niger Delta, it comes under the purview of Section 14 (2) “That is the thrust of the amendment. And having said that, in Schedule 2 of that military decree (Decree no 39), which is now an existing law according to the constitution,  the National Assembly has a duty to bring it into conformity to the constitution,” he said.

However, stakeholders are urging the government to respect the terms of the contract that leday to setting up of the NLNG.