Nigeria will lose $25bn to NLNG Act amendment – Omotowa

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The outgoing Managing Director and Chief Executive Officer of the Nigeria LNG Limited, Mr. Babs Omotowa, has said the proposed amendment of the NLNG Act of 2004 will cost the country over $25bn in foreign direct investment and fines running in billions at the international courts.

Omotowa said any tinkering of the Act would violate bilateral agreements with international investors.

He stated this on Thursday in Lagos at the National Association of Energy Correspondents’ Annual Conference.

Omotowa, who was the chairman at the event, has been the Managing Director for NLNG for some five years and will be handing over to incoming MD, Tony Attah, on September 1, 2016.

He said the NLNG, through its expansion growth programme, which involves the expansion of production capacity of the LNG plant in Bonny, Rivers State, with a Train 7 and 8, could attract $25bn.

He said it could create 30,000 construction jobs, help to further reduce gas flaring, and generate over $1bn to $2bn additional revenue to the country in taxes and dividend.

Omotowa said, “In a period of huge youth unemployment and need for more revenue, this should really be a cause we should have all hands on deck for, especially as NLNG has demonstrated its pedigree having attracted $15bn in foreign investment, grown from a two-train to a six-train plant, contributed to reducing gas flaring from 65 per cent to below 20 per cent, delivered $33bn to Nigeria from a $2.5bn investment.

“This potential $25bn in investment, creation of 30,000 jobs, reduced gas flaring, among others, are being put in jeopardy by attempts to renege on promises that Nigeria gave to foreign investors that enabled the historical $15bn investment historically attracted.”


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