Stakeholders task incoming N’assembly on favourable oil, gas laws

STAKEHOLDERS in Nigeria's oil and gas sector have raised the alarm over fresh threat being constituted to the business environment as a result of the Senate’s directive for Nigeria Liquefied Natural Gas ( NLNG) to pay N18.4 billion to host communities for right of way ( ROW) it acquired in 1989 for N73 million.

The stakeholders, who gathered at the Platforms Africa Forum 2022 in Lagos, maintained that the Senate lacked the power to order NLNG to pay N18.4 billion.

Partner, Bloomfield Law Practice, Dr. Ayodele Oni, who spoke from Houston, Texas, and the Keynote speaker, Barrister Jide Ologun, unanimously declared that the Senate's power guaranteed by the constitution is enormous, but does not include giving an order to a company to pay money within a stipulated time.

"The Senate is not a court. That right to order resides solely with the Court," Ologun said.

"The 9th National Assembly has done well and sets a standard for the 10th Parliament to surpass. But one area the forthcoming Assembly should refrain from is giving a directive to companies. The recent directive to NLNG to pay N18.4bn within eight weeks is not within the powers of the Senate, " Oni added.

All lands belong to the government, and it was the government that gave them the land. In addition, it was confirmed that the NLNG paid N73 million in 1989, any other thing the NLNG is doing will only amount to Corporate Social Responsibility ( CSR). The directive for the company to pay will only mount a roadblock to the Foreign Direct Investment ( FDI).

Energy analyst, Tajudeen Adigun, who stated that Nigeria's energy sector is suffering from the dearth of FDI with many companies folding up due to legislation, urged the 10th National Assembly to concentrate on making laws that will engender FDI.