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Rowdy Session in National Assembly Over $4.451bn NLNG Project

This followed the committee's dissatisfaction with NLNG's failure to provide the required information

paulcraft by paulcraft
June 14, 2024
in National
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  • Lawmakers criticized NLNG and contractors for withholding vital information, complicating the $4.451 billion NLNG project investigation
  • The joint committee demanded NLNG furnish all required documents and cease further variations in the contract during the public hearing

A tumultuous scene unfolded in the National Assembly on Thursday during a joint committee meeting of the Senate and House of Representatives investigating the $4.451 billion Nigeria Liquified Natural Gas (NLNG) project 7.

During the public hearing, the joint committees convened separate closed-door sessions with NLNG officials, led by Project Director Ali Uwais, and the project contractors. This followed the committee’s dissatisfaction with NLNG’s failure to provide the required information.

Amidst disagreements and controversies, the committee passed a resolution formally requesting NLNG furnish all necessary documents and information and instructing NLNG to cease further variations in the $4.451 billion contract.

The investigative hearing drew a large crowd of lawmakers, including committee members and non-members, reflecting the contentious atmosphere that marked the investigation from its onset.

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Tensions escalated when Uwais presented a document containing information that lawmakers deemed limited. Senator Jarigbe Agom Jarigbe, chairman of the joint committee, expressed disappointment over a clause indicating that the figures were disputed and subject to ongoing commercially privileged negotiations, rendering them unfit for investigation purposes.

Amid the tense proceedings, the committee adjourned for its first closed-door session. An hour later, journalists were readmitted.

Lawmakers criticized NLNG and the contractors for withholding crucial information vital to the investigation. Key issues of contention included insufficient details on the original contract sum of $4,372,760,462, limited information regarding 99 variation requests totalling $177,892,289, 62 approved variation orders amounting to $43,771,475, and approved amendments worth $35,000,000.

NLNG informed the committee of five pending variation requests totalling $7,609,678. Uwais attributed these variations to fluctuations in foreign exchange rates.

Regarding project status, Uwais reported overall progress at 67% completion, comprising engineering at 97.9%, procurement at 95.5%, and construction at 52.5%.

The session underscored deep-seated concerns and frustrations among lawmakers, highlighting the complexities and challenges in overseeing large-scale projects within Nigeria’s legislative framework.

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