‘Amend­ment of NLNG Act threat­ens Nige­ria’s econ­omy’

Daily Trust - - BUSINESS - From Mo­hammed Shosanya, La­gos

Nige­ria’s econ­omy is threat­ened by the Na­tional Assem­bly’s in­sis­tence to amend the Nige­ria Liq­ue­fied Nat­u­ral Gas (NLNG) Act, the Petroleum Club said at the weekend.

The Petroleum Club de­scribed Na­tional Assem­bly’s in­tended ac­tion as an ad­ven­ture in the wrong direc­tion, warning that the pro­posed amend­ment would have far reach­ing neg­a­tive con­se­quences for the liq­ue­fied nat­u­ral gas busi­ness and the en­tire petroleum in­dus­try in the coun­try.

The club said that if the pro­posed amend­ment of NLNG Act sailed through, many oil com­pa­nies and in­ter­na­tional lenders would no longer have con­fi­dence in Nige­ria.

The Chair­man of the Senate Committee on Niger Delta, Sen­a­tor Peter Nwao­boshi, who spon­sored the amend­ment of NLNG Act, lamented the gas com­pany’s re­fusal to pay dues to the Niger Delta De­vel­op­ment Com­mis­sion (NDDC) for the past 16 years.

Nwao­boshi said: “It is not whether that they con­trib­uted cer­tain per­cent­age. The point is that they had re­fused to obey the law since year 2000.”

How­ever, the Petroleum Club punc­tured the rea­sons ad­duced by the spon­sors of the amend­ment of the NLNG Act as pre­pos­ter­ous, say­ing that NLNG was never a gas pro­duc­ing com­pany but only a pro­cess­ing firm and, there­fore, should not be held re­spon­si­ble for the un­nec­es­sary gas flar­ing in the Niger Delta.

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