Nigeria to Lose $25b FDI Upon Gas Act Changes

Nigeria to Lose $25b FDI Upon Gas Act Changes

Nigeria stands to lose over $25b in foreign direct investment and legal fines from international courts if the planned amendment to the Nigeria Liquefied Natural Gas (NLNG) Act of 2004 proceeds. The amendment, which will force NLNG to remit 3% funding to the Niger Delta Development Commission, would violate bilateral agreements with international investors, thereby halting the inflow of further direct investment into the country, TODAY.ng reported.

NLNG’s outgoing Managing Director and CEO, Babs Omotowa, disclosed that the proposed changes would affect the company by slowing its expansion programs that are expected to provide 30,000 construction jobs, reduce gas flaring, and generate tax and dividend revenue of up to $2b, according to the Nigerian Tribune.

Nigerian Minister of State for Petroleum, Ibe Kachikwu, confirmed that the Federal Government was in solidarity with NLNG in ensuring that Nigeria’s contractual agreements are honored.

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