Lagos — Nigeria's economy is threatened by the National Assembly's insistence to amend the Nigeria Liquefied Natural Gas (NLNG) Act, the Petroleum Club said at the weekend.
The Petroleum Club described National Assembly's intended action as an adventure in the wrong direction, warning that the proposed amendment would have far reaching negative consequences for the liquefied natural gas business and the entire petroleum industry in the country.
The club said that if the proposed amendment of NLNG Act sailed through, many oil companies and international lenders would no longer have confidence in Nigeria.
The Chairman of the Senate Committee on Niger Delta, Senator Peter Nwaoboshi, who sponsored the amendment of NLNG Act, lamented the gas company's refusal to pay dues to the Niger Delta Development Commission (NDDC) for the past 16 years.
Nwaoboshi said: "It is not whether that they contributed certain percentage. The point is that they had refused to obey the law since year 2000."
However, the Petroleum Club punctured the reasons adduced by the sponsors of the amendment of the NLNG Act as preposterous, saying that NLNG was never a gas producing company but only a processing firm and, therefore, should not be held responsible for the unnecessary gas flaring in the Niger Delta.
A memorandum to the National Assembly, signed by the chairman of the board, Otunba Funso Lawal and Dr G.S. Ihetu, the chairman of policy committee of the Petroleum Club, cited sections of the NLNG Act that it said were against the fiscal regime and called for their amendment.