The passage
of a bill amending Nigeria Liquefied Natural Gas (NLNG) Act, primarily to
ensure the company remits three per cent funding to the Niger Delta Development
Commission (NDDC), by the House of Representatives has been met with varying
reactions, with some oil and gas sector stakeholders describing the proposed
law as more harmful than useful. This is despite being applauded by majority of
people from the Niger-Delta. Sponsor of the bill and Minority Leader of the
House, Hon. Leo Ogor in this interview with KEMI YESUFU and NDUBUISI ORJI
speaks on why he insists amendment of the law is the thing to do. He also spoke
on the seemingly unending crisis in the Peoples Democratic Party (PDP) and why
working with Senator Ali Modu-Sheriff is not an option for him.
Your bill to
amend the NLNG law, which passed third reading in the House, has been described
by some industry watchers as more detrimental than it is advantageous to the
country. Don’t you think the worry expressed by these stakeholders is valid?
I think it
is important that the Nigeria people hear the other side of the story. Here is
a company that commenced operations almost 29 or 30 years ago and they have
been enjoying this (Fiscal incentives, Guarantees and Assurances) incentive for
the past 27 years. There is no place in
the world where you will have unlimited period of enjoying incentives.
Incentives some are for five years, maximum ten years. The NLNG has enjoyed these incentives for 27
years. And it is so sad that a lot of
Nigerians don’t know that the Federal Government owns 49 per cent stake in this
company, which makes it the largest shareholder. It is one of those joint
ventures with the International Oil Companies (IOCs), while the IOCs have 51
per cent. How can you enjoy incentives
for 27 years in a country where people are suffering and dying on a continuous
basis? What we said is that: NLNG, there is need for you, knowing too well that
the Niger Delta zone where you are operating from has a development commission.
And in line with laws of that commission, you are supposed to as a gas processing
company, contribute three per cent of your turnover to the commission and even
this three percent is tax deductible. It is also important that Nigerians know
that some of these contracts signed by the NLNG in respect to the gas that they
are buying and exporting are ridiculous. They are getting this gas at the price
of one-dollar per-cubit feet. When even
those that are buying the same gas that they are exporting, buy it $2.5, plus
the cost of transportation of 80 cents, which brings it to $3.30. And they are
buying this product for just one dollar, yet they are the ones complaining.
But some argue that the NLNG has really
invested in the region, through plenty of Corporate Social Responsibility (CSR)
projects. In fact, the company recently mentioned that it is willing to partly
fund the Bonny-Bodo Road with N60billion. People have even asked how well NDDC
has done with what it has been getting?
That is not
the issue. The issue now is that there is a law of the land. There is an enactment of the National
Assembly, which requires them (NLNG) to contribute three per cent. They have no
right, no business to refuse paying that three per cent, because it is expected
that those that have suffered this oil degradation, this whole crisis of
pollution, should have some succour. How do they do this? It isfrom these interventions that are coming
from the NDDC and these interventions from the commission have helped state
governments.
But the NLNG
is pointing to Fiscal Incentives, Guarantees and Assurances aspect of its law,
which covers…
(Cuts in), The law does not give them any
open-ended exemption. Be mindful of the fact that the law itself came as a decree.
It is not an open-ended law. These tax exemption cannot be for 20 years, 30
years. Tax exemption is not an open-ended situation. If there is an exemption,
it must be qualified for a period. And even the law that they are quoting says
10 years for tax exemptions. Why won’t they respect the laws of the land? Our
take is that this whole unacceptable blackmail should stop. Let NLNG come out
and tell us which country in the world has such an open-ended policy, where you
enjoy tax incentives forever. The bill is even to their advantage, as far as I
am concerned, because the development of the place will bring in enough
security.
You are
sounding very confident that your bill will get concurrence from the Senate and
it will be signed into law by the president?
Sure. It
will be signed.
Even with
the largely negative reaction to it?
The reactions you talk about are nothing but
the negative publications coming from no other place than the NLNG because they
do not want to pay that three per cent contribution.
Could it be
because lawmakers from the Niger Delta dominate the leadership of the Petroleum
and Gas Committees in National Assembly, that you see the passage of your bill
as a fait accompli?
No. What is
good for the goose is good for the gander. What we are saying is: should a
company enjoy open- ended tax incentives or any form of incentives? The answer
is capital no.
Aren’t you
concerned with the opinion of some legal practitioners, that this bill if
signed into law, might result to international litigation, which government
will spend scarce resources defending?
This is all
cheap blackmail. Look at the one they wrote in the paper last week, that we are
going to be losing $25 billion investment. They forgot that these investments
are where we (Nigeria) are also stakeholders. I find it so difficult that
people don’t want to contribute to the development of where their product, your
raw materials is coming from. I call it wickedness.
With the collapse of the proposed political
solution to the crisis in the PDP, is there any end in sight to the dispute?
I don’t see any end. The issue is already before the Supreme
Court. I have never doubted what the Court will do. But I am convinced that
whatever position taken by the Supreme Court, we will abide by it. As far as I
am concerned, whatever political solution people hoped on, I knew we were not
going to get it because of the calibre of people we were dealing with. People
who are not very sincere, who have their own ulterior motives and what they
wanted. I am not too bothered, because even going into that meeting, we knew
their game plan. For us, we wait on the Supreme Court. And like I have always
said, justice delayed is justice denied. The Supreme Court will do us a major
favour by coming out with a clear position as soon as possible, because various
elections are taking place at the moment.
Many
supporters of your party have expressed fears that this crisis may lead to the
demise of PDP, do you share that fear?
Sure. It is
a major mistake that we made, a very regrettable one. Sometimes it is too late
to cry when the head is off. We are already in it.
You talk
about making a major mistake. What exactly are you talking about?
Bringing the
person of (Ali-Modu) Sheriff into our system, I regret it immensely. It is a
very regrettable mistake. We wouldn’t have found ourselves in this predicament.
It is sad. Because this is somebody that was driven away from the APC and
because of our open mindedness, we accepted him. Unfortunately, he has come to
do what he knows how to do best.
Sheriff has said he is ready to quit after a
convention. As part of the arrangement for the convention, going by the report
of Governor Seriake Dickson Reconciliation Committee, the House caucus is
expected to nominate some persons to serve in the Convention Committee. Are you
going to send nominations?
We don’t
trust him. It is as simple as that. We don’t trust him. First, they said the
convention is illegal. With all the due respect to Governor Dickson, he was a
product of that convention. Let me put it this way to you, the NEC of the party
actually formed that committee. It also formed the convention organising
committee. So, if you say the convention was illegal, then automatically, that
Reconciliation Committee is illegal. I really don’t want to bother myself. Let
me wait, because I am convinced beyond reasonable doubt that we didn’t get fair
judgment from the Court of Appeal, that is why we have ran to the Supreme
Court. Whatever decision comes out from the Supreme Court, we will take our
next step from there. Really, I don’t want to bother myself about this Sheriff
issue. Because already, the damage has been done. The destruction has taken
place. There is no way we can solve this problem, the way it is.
Some of us
have made up our minds that under no circumstances, will we work with Sheriff.
We just want to be patient and observe the event that is playing out.
What will
you do if the Supreme Court affirms the judgment of the Appeal Court?
Wait for my
actions. I don’t want to put the cart before the horse. Let that decision be
taken. But may God forbid. If it doesn’t come out the way I hope, you will see
what steps I will take.
*Sun new*
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