Featured
NLNG Act Review: Nigeria Risks $25bn Loss
The outgoing Managing Director and Chief Executive Officer of the Nigeria Liquefied Natural Gas (NLNG) Limited, Mr. Babs Omotowa, has said that the proposed amendment of the NLNG Act of 2004, will cost the country over $25billion in foreign direct investment and fines running into billions of dollars at various international courts.
Omotowa said any tinkering of the Act would violate bilateral agreements with international investors.
He stated this, yesterday, at the National Association of Energy Correspondents’ Annual Conference, in Lagos.
Omotowa, who was the chairman at the event, has been the Managing Director for NLNG for some five years, and will be handing over to incoming Managing Director, Tony Attah, on September 1, 2016.
He said the NLNG, through its expansion growth programme, which involves the expansion of production capacity of the LNG plant in Bonny, Rivers State, with a Train 7 and 8, could attract $25billion foreign direct investment.
He said it could 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.
Omotowa said, “in a period of huge youth unemployment and need for more revenue, this should really be a cause for concern. We should have all hands on deck for, especially as NLNG has demonstrated its pedigree, having attracted $15billion in foreign investment, grown from a two-train to a six-train plant, contributed to reducing gas flaring from 65 per cent to below 20 per cent, delivered $33billion to Nigeria from a $2.5billion investment.
“These potential $25billion 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 that enabled the historical $15billion investment attracted.”
Omotowa said while the executive had 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 would cost the country quite a lot.
He said, “apart from the relocation of investments in excess of $25billion to other countries, Nigeria will also be opened to fines running into billions of dollars in international courts for reneging on agreements.
“Such incentives in the NLNG Act are normal in the LNG world, including in Qatar, Oman, Malaysia, Angola, etc. Even in Nigeria, more generous incentives are contained in legislation such as the Oil & Gas Free Trade Zone Act,” he said.
The Tide recalls that the NLNG is owned by four shareholders, namely, the Federal Government, represented by the Nigerian National Petroleum Corporation (NNPC) with 49 per cent, Shell Gas BV, SGBV, (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International (10.4 per cent.
The facility’s technical operation is managed by Shell.
Featured
Fubara Redeploys Green As Commissioner For Justice
The Governor of Rivers State, Sir Siminalayi Fubara, has approved a minor cabinet reshuffle in the State Executive Council.
Under the new disposition, Barrister Christopher Green, who until now served as Commissioner for Sports, has been redeployed to the Ministry of Justice as the Honourable Attorney General and Commissioner for Justice.
This is contained in an official statement signed by Dr. Honour Sirawoo, Permanent Secretary, Ministry of Information and Communications.
According to the statement, Barrister Green will also continue to coordinate the activities of the Ministry of Sports pending the appointment of a substantive Commissioner to oversee the ministry.
The redeployment, which takes immediate effect, was approved at the last State Executive Council meeting for the year 2025, underscoring the Governor’s commitment to strengthening governance, ensuring continuity in service delivery, and optimising the performance of key ministries within the state.
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Fubara Restates Commitment To Peace, Development …Commissions 10.7km Egbeda–Omerelu Road
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.
The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.
Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.
He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.
Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.
“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.
He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.
“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.
Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.
Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.
He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.
He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.
In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.
He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.
Featured
Oil & Gas: Rivers Remains The Best Investment Destination – Fubara
Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.
Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.
The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.
Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.
“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.
“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.
“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.
“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?
Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.
Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”
The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.
“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.
“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.
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