Controversies, Disagreements Surround $4.4bn NLNG Project Investigation

The investigation conducted by the National Assembly into the $4.451 billion Nigeria Liquified Natural Gas (NLNG) project has been marred by controversies, disagreements, and rowdiness.

The joint Committees of the Senate and House of Representatives, tasked with the probe, held two separate closed-door meetings with NLNG officials and project contractors, each lasting over an hour.

However, these meetings failed to provide the required information, leading the committees to formally request the necessary documents and information from NLNG.

In their resolution, the committees also called on NLNG to cease any further variations in the $4.451,731,937 billion contract.

The investigative hearing held on Thursday witnessed a large crowd of lawmakers, both members and non-members of the Gas committees, due to the hostile atmosphere that has plagued the investigation from the beginning.

The trouble began when NLNG Project Director, Ali Uwais, submitted a document containing what the lawmakers deemed limited information.

Senator Jarigbe Agom Jarigbe, the chairman of the joint committee, expressed disappointment over a clause in the document stating that the figures contained therein are disputed and subject to ongoing commercially sensitive negotiations.

Jarigbe argued that these figures cannot be used for the investigation.

Amidst the tense situation, the committee convened a closed-door session. Journalists were later invited to monitor the proceedings after an hour of secret talks.

Lawmakers took turns condemning NLNG and the contractors for their refusal to provide useful information for the investigation.

Several contentious issues have emerged during the investigation, including the lack of information and explanation regarding the original contract sum, which stood at $4,372,760,462.

Additionally, there is limited information available concerning 99 total variation requests worth $177,892,289, 62 approved variation orders totaling $43,771,475, and approved amendments and settlements amounting to $35,000,000.

NLNG informed the committee that they are currently evaluating five variation requests, which total $7,609,678. Uwais also attributed the contract variations to fluctuations in foreign exchange rates.

Regarding the project’s progress, Uwais stated that it is currently 67 per cent complete, with engineering at 97.9 per cent, procurement at 95.5 per cent, and construction at 52.5 per cent.

The Committee adjourned and is set to reconvene on July 3, 2024, to continue the investigation.