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Disagreements as N’ Assembly joint committees probe $4.451bn NLNG project 7

 

 

By Nathaniel Zacchaeus, Abuja

 

There was a mild drama yesterday during an investigation by the National Assembly into the $4.45bn Nigeria Liquefied Natural Gas (NLNG) project 7.

 

The session attracted controversies, disagreements, and uproar among stakeholders when both the Senate and House of Representatives joint committees held a joint session on the matter.

 

The panels of the two chambers had to resort to closed sessions on two occasions with the NLNG officials led by NLNG Project Director, Ali Uwais, as well as the contractors handling the project.

 

However having failed to get the information they required, the committees, in a resolution, agreed to formally make their requests known to the NLNG in terms of documents and other information needed.

 

It also charged the NLNG to halt further variations in the $4.451,731,937 contract.

 

Yesterday’s investigative hearing attracted many lawmakers comprising members and non-members of the Gas committees because of the hostile atmosphere that has weakened and crippled the investigation since its beginning.

 

Trouble started when Uwais submitted a document containing what the lawmakers called limited information.

 

The chairman of the joint committee, Senator Jarigbe Agom Jarigbe (PDP Cross River North), expressed disappointment that a clause in the document said that “figures contained therein are disputed and subject to ongoing legally privileged commercial negotiations.”

 

Jarigbe said it means the figures can’t be used for the investigation.

 

Amidst the tense situation, the committee went into the first closed-door session. After an hour of secret talks, journalists were called in to monitor the situation.

 

Lawmakers took their turns to condemn the insistence of NLNG and the contractors on not making useful information available for the investigation.

 

The contentious issues include a lack of information and explanation on the original contract sum which was $4,372,760,462.

 

Others are limited information on the 99 total variation requests worth $177,892,289; approved 62 variation orders amounting to $43,771,475; and approved amendments (claims/settlement) worth $35,000,000.

 

The NLNG had informed the committee that five variation requests were being evaluated and they amounted to $7,609,678.

 

Uwais also told the committee that the fluctuation in foreign exchange rates was a principal cause of contract variation.

 

On the status of the project, he said, “The overall progress of the project is at 67 per cent completion, made up of engineering at 97.9 per cent, procurement at 95.5 per cent, and construction at 52.5 per cent.

 

The Committee adjourned to reconvene on July 3, 2024

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