NLNG Act amendment to cost Nigeria $25bn in foreign direct investment –

Nigeria stands to lose over $25 billion in foreign direct investment (FDI) and legal fines from international courts if the planned amendment of the NLNG Act of 2004 sails through, it has been gathered.

The losses, according to sources, will majorly come in fines, as the amendment would violate bilateral agreements with international investors, thereby forestalling inflow of further direct investment into the country.

Babs Omotowa, outgoing Managing Director and Chief Executive Officer of Nigeria LNG (NLNG), disclosed that the amendment would affect the NLNG by slowing its expansion programmes that are expected to rake in $25 billion foreign investment, provide 30,000 construction jobs, reduce gas flaring and generate tax and dividend revenue of up to $2 billion.

Omotowa, who was the chairman of the August Oil and Power Conference organised by the National Association of Energy Correspondents (NAEC), said that the planned amendment would hurt the country, as it would be entangled in litigation from international stakeholders and ultimately depress investment in the oil and gas sector.

“Whilst the executive has demonstrated full commitment to the need to keep the sanctity of the NLNG Act, the attempt by the legislature to amend the clear promises made to investors will cost the country quite a lot. Apart from the relocation of investments in excess of $25 billion to other countries, Nigeria will also be opened to fines running into billions of dollars in international courts for reneging on agreements,” he noted.