Oil and gas workers have described the proposed amendment of the Nigeria Liquefied Natural Gas, NLNG, (Fiscal Incentives, Guarantees and Assurances) Act by the House of Representatives as unnecessary.
The workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, expressed their view in a statement made available to journalists on Sunday in Lagos.
The statement was signed by Francis Johnson and Lumumba Okugbawa, PENGASSAN President and Acting General Secretary respectively, after the association’s National Executive Council meeting in Abuja.
According to the association, the amendment, if effected, will impact negatively on foreigners image of Nigeria and may cause imminent losses that will far outweigh any doubtful gains.
The association said in the statement that the international community would perceive Nigeria as a country which does not honour its promises or take its desire for foreign investments seriously.
“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 association further stated that the National Assembly’s proposed action would affect recent gains made in the area of gas flaring in Nigeria, which had reduced from 65 per cent to less than 20 per cent.
The amendment, it further said, would 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. It is currently the 4th largest supplier of LNG in the world.
“NLNG is a pride to Nigeria and the country’s flagship company, with the model being considered for replication in various sectors of the economy.
“The proposed amendment of the NLNG Act is not in the interest of Nigeria and it is absolutely necessary that the Act is not amended as the imminent losses will far outweigh any doubtful gains,’’
The association advised the legislators to make laws that would improve existing businesses in the country and also attract new investments.