Business
Don’t Amend NLNG Act, Okonedo Tells NASS
The management of Nigeria Liquefied Natural Gas (NLNG) Ltd. has appealed to the Senate not to amend the NLNG Act for the sake of the nation.
The Manager, Corporate Communications, NLNG, Mr Tony Okonedo, made the appeal at the press conference organised by the company in Lagos last Wednesday.
The Tide source reports that the House of Representatives on May 9 passed a bill seeking to amend the NLNG Act, which will subject the company to 3 per cent Niger Delta Development Commission (NDDC) levy.
Okonedo said the appeal was imperative because the bill would soon be submitted for passage to the Senate.
‘We understand that this bill will be progressed to the Senate.
‘We think that this is a huge error to pass the bill as it is a direct collision with the Federal Government’s drive to attract Foreign Direct Investment (FDI),” he said.
The manager said that the Act, if amended, would adversely affect the NLNG, which is Nigeria’s number one gas company.
“NLNG is proudly the country’s biggest and most successful indigenous company, run by 100 per cent Nigerian management and over 95 per cent Nigerian staff, yet competing effectively globally.
“It is today the country’s highest tax payer and the 4th largest supplier of LNG in the whole world.
“NLNG is a pride to Nigeria and the nation’s flagship corporation whose model is being considered for replication in various sectors of the economy.
“But the fact that the company is being targeted by this amendment while fellow gas purchasers and processors in other businesses such as fertilizer, petrochemical, and electricity are left untouched, gives the world the impression that Nigeria would rather drag down than support its best,” he said.
Okonedo also said that, if amended, the Act would be a threat to the company’s continued existence.
“NLNG succeeded largely due to the provisions of the NLNG Act, which gave investors the confidence to invest in the country.
“But with an amendment, that confidence will be eroded and jeopardize critical ongoing investments for the continued survival of the company.
“Critical among which is the $1 billion needed annually for the next three years to guarantee the current operation of six existing Trains,” he said.
Okonedo said that the amendment of the Act would also discourage inflow of foreign investment.
“After 35 years of unsuccessful effort, NLNG could only be incorporated upon the enactment of the NLNG Act which then enabled the establishment of the company.
“To thus amend the basis of the investment in Nigeria will obviously breach the promises of government to its co-investors.
“This will badly damage the reputation of the country, its credit rating, and ability to attract or even retain future investments.
“Any amendment will also mean an immediate potential loss of foreign investment of US$25 billion in respect of Trains 7 and 8 investments.
Also, the expected 18, 000 construction jobs for Trains 7 and 8 will also be lost if the Act is amended.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.