UGO AMADI
The outgoing Managing Director and Chief Executive Officer of Nigeria LNG Limited, Mr. Babs Omotowa, has disclosed that any tinkering of the Nigeria LNG Act of 2004 will violate bilateral agreements with international investors as well as cost the country a huge $25 billion in foreign direct investment (FDI) and fines running in billions of dollars at the international courts.
He disclosed while speaking at the National Association of Energy Correspondents (NAEC) conference, with the theme:’Low Oil Price: Impact and the Way Forward’.
Omotowa, who was the chairman at the conference, has been the Managing Director for NLNG for some years and will be handing over to the incoming Managing Director, Mr. Tony Attah, on September 1, 2016.
Speaking during his address, Omotowa said NLNG, through its expansion growth programme which involves the expansion of production capacity of the LNG plant in Bonny, Rivers, with a Train 7 and 8, could attract $25 billion, create 30,000 construction jobs, help to further reduce gas flaring and generate over $1billion to $2billion additional revenue to the country in taxes and dividend.
“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, especially as NLNG has demonstrated its pedigree having attracted $15billion in foreign investment, grown from a 2 Train to a 6 Train plant, contributing to the reduction gas flaring from 65 per cent to below 20 per cent, delivering $33 billion to Nigeria from a $2.5 billion investment.
This potential $25 billion 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 which enabled the historical $15 billion investment historically attracted,” Omotowa explained.