Tayo Oginni, production general manager of the Liquefied natural gas (LNG)-producing company, NLNG, has said amending the Act establishing the corporation would invite double taxation.
“The Nigeria LNG Limited (NLNG) Fiscal Incentives, Guarantees and Assurances Act (NLNG Act allowed investments to flow into the country. It provided investors the confidence that any agreement entered into would be respected and preserved. To amend the Act will not help Nigeria, NLNG and its hopes for expansion. It will erode investors’ confidence that the Act provided in the first place,” he said to a group of foreign journalists.
Oginni explained that gas suppliers to NLNG currently pays to the Niger Delta Development Commission (NDDC) a 3% levy.
He said the move will hurt the organisation and Nigeria, whereas it should develope its vast gas resources and attract foreign direct investments into the country. Also, Oginni feared that Nigeria’s global reputation as having fast-growing LNG project would become insignificant if attempt at changing its Act pulled through.
He urged the Federal Government to preserve extant NLNG Act and pass the Petroleum Industry Bill to spur bigger growth in the country’s oil and gas industry.