Oil workers under the guidance of the Petroleum and Natural Gas Senior Staff Association of Nigeria have said that the proposed plan by the National Assembly to amend the Nigeria Liquefied Natural Gas (Fiscal Incentives, Guarantees and Assurances) Act will affect about 18,000 jobs in the sector.
The association made its stance known during its National Executive Committee meeting in Abuja.
According to the spokesman of the association, about N25bn worth of foreign investments will be lost and the amendment will impact negatively on the image of Nigeria.
PENGASSAN argued that the international community would perceived Nigeria as a country that was not honouring its promises and did not take its desire for foreign investments seriously.
In a statement signed by PENGASSAN President, Francis Johnson; and acting General Secretary, Lumumba Okugbawa, the association said that the losses that would accrue from the amendment of the Act outweighed its gains.
“The proposed amendment could directly affect some $25bn worth of foreign investments as well as 18,000 Nigerian jobs linked to the NLNG’s Train 7 and 8 expansion programmes, this will negate the job creation and job security policy being propagated by the current administration,” He said.
The body added that the National Assembly’s proposed action would not only affect recent gains made in the area of gas flaring, but would lead to the loss of up to $124m annually payable as taxes and dividends to the Federal Government.
It noted that gas flaring had been reduced from 65 per cent to less than 20 per cent.
The statement added, “The NLNG is a made-in-Nigeria company competing globally and has been a huge success so far. It is currently the fourth largest supplier of liquefied natural gas in the world. The NLNG is a pride to Nigeria and the country’s flagship company, with the model being considered for replication in various sectors of the economy.”