Nigeria’s FID Risks Another Threat Over N18.4bn Sanction On NLNG
Stakeholders in the Nigeria’s oil and gas sector, on Monday, expressed concerns over fresh threat being constituted to the Foreign Direct Investment (FID) and ease of doing business drive, by Senate 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.
They spoke on Monday at the Platforms Africa Forum 2022 in Lagos,where they insisted that upper house lacks power to order NLNG to pay N18.4 billion penalty.
Partner, Bloomfield Law Practice, Dr. Ayodele Oni, who spoke from Houston, Texas, and the keynote speaker, Barrister Jide Ologun, declared that the Senate’s power guarantee by the constitution is enormous but this 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 set 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.
“All lands belong to government, and it was the government that gives them the land. In addition, it was confirmed that the NLNG paid N73million 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 (FID)”,Oni added.
Speaking,veteran energy journalist and analyst, Tajudeen Adigun, disclosed that Nigeria’s energy sector is suffering dearth of FID with many companies folding up due to legislation.
He implored the 10th National Assembly to concentrate on making laws that will engender FID.
“The Senate has the constitutional oversight function but in discharging this role, it must always consider the ease of doing business.The communities must be protected while companies too deserve protection to succeed. The NLNG is a company bounded by law and anyone enraged by action or inaction of the company should approach a court for redress.
“Well, they can write a petition to the NASS and the parliament too has the right to accept the petition and look into it. But only the Court, not the NASS, has the right to make an order for a company to pay within a stipulated time. The bottomline is that the parliament should consider ease of doing business in discharging its legislative duties.”