Experts react as Senate asks NLNG to pay communities N18.4bn

Experts, yesterday, reacted as the Senate asked the Nigerian Liquefied Natural Gas, NLNG Limited, to pay N18.4 billion compensation to 73 communities in Rivers State within two months.

The Senate had asked the NLNG to pay compensation to the communities of Obiafu, Soku, and Bonny in Rivers State for acquiring their land and loss of use of the affected land to pipeline Rights of Way, RoW, through the communities.

The chairman of, the Ethics, Privileges and Public Petitions Committee, Senator Patrick Akinyelure, had said there were over 200 families in the communities, whose hitherto agrarian source of livelihood was negatively impacted by the said acquisition.

He had acknowledged that the company paid N74.64 million for part of the 210 kilometers of land acquired for pipelines RoW, adding that the payment made covered 39 communities and 73 individuals and families.“The senator had also alleged that there was no Global Memorandum of Understanding, GMoU, signed between the communities and NLNG on future obligations.“But in a telephone interview with Track News, yesterday, a Rumuji Node RoW contractor, Dr. Elechi Johnson, said the NLNG and the communities already had an existing GMoU, a comprehensive agreement that governed their relationship and activities.

He said the company had already made sufficient payments to the communities, based on the existing GMoU, adding that the people were happy.

He said: “I am aware that, NLNG has made payment with evidence provided. The GMOU is being executed to develop all communities in the RoW. Some projects are currently being executed for the communities, which are also the major drivers while the NLNG remains the sponsor.

“All the parties have been working in a very peaceful and collaborative manner. The NLNG did not wait for the GMoU. Even before the GMoU, the company had completed a road in Rumuji, and the families in the community are happy with NLNG.

“He urged all parties, especially the Senate to work toward resolving the current conflict amicably, adding that, “All parties should respect the laws of the land in ending the conflict.

“Similarly, the National President, of the Oil and Gas Service Providers Association of Nigeria, OGSPAN, Colman Obasi, said that it is very likely that all requirements and expectations, including compensation, were fully paid before the commencement of the project in Bonny, Rivers state.

government through NNPC for feed-gas from inception till date is about USD15 billion while its Foreign Direct Investment (FDI) hovers at about USD17.5 billion.““It should be noted that NLNG provided more than 12,000 jobs at the peak of construction of each plant. The major sub-contractors employed over 18,000 Nigerians in technical jobs in the Base Project (Trains 1 and 2). Over 12,000 direct jobs will be generated during the construction phase of Train 7, most of whom would be indigenes of the communities.

Also, the company has over the years been the major supplier of Liquefied Petroleum Gas (LPG) for domestic consumption, which deserves maximum support of the Senate and other stakeholders.”

“Another expert, who pleaded anonymity, apparently because he was not permitted to speak, said: “From all indications, the company has done a lot to the communities and remains committed to doing more for the people as part of its community projects and programmes. It does not need the intervention of the Senate to do so.”

“Recently, NLNG Limited had sealed a GMoU with six new host communities in Rivers, namely, Abua, Egi, Ekpeye, Kalabari, Ogba, and Okrika.“Speaking at the event, the chairman of, the House of Assembly Committee on Environment, Christian Ahiakwo, described the GMoU as a new paradigm, targeted at enhancing community development.“Specifically, Ahiakwo had said the “NLNG has built a system that will reduce suspicion and encourage gender inclusion, community unity, and development.”

“Also speaking at the event, the General Manager, of External Relations and Sustainable Development, NLNG, Andy Odeh, explained that the GMoU is a model for sustainable community development in which communities are grouped into clusters and supported to drive their sustainable development.“

He said: “The decision to take up this model of relationship is based on the yearnings and observed developmental deficits in our GTS communities. The need to bridge the infrastructural gaps, to alleviate poverty and unemployment while building community capacity to drive their affairs necessitated this novel approach for CSR activities.“

“The GMOU framework has already been adopted by International Oil Companies (IOCs) for managing relations with their respective host communities, and it has proven fruitful over the years.“

“While it may seem NLNG is late to the game, we believe our GMOU model will benefit from the experiences of these IOCs and, therefore, it is assured successful outcomes.