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Nigeria liquified natural gas – Rowdy session as NASS commences investigation

Investigation of the National Assembly into the $4.451 billion Nigeria Liquified Natural Gas (NLNG) project 7 attracted more controversies, disagreements and rowdiness on Thursday.

Twice and for over an hour each, the joint Committees of the Senate and House of Representatives conducting the probe went into two separate closed door meetings with the NLNG officials led by NLNG Project Director, Ali Uwais, as well as the contractors handling the project.

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 document and other information needed. It also charged the NLNG to halt further variations in the $4.451,731,937 billion contract.
Trouble started when Uwais submitted a document containing what the lawmakers called limited information.

The chairman of the joint committee, Senator Jarigbe Agom Jarigbe, expressed disappointment that a clause in the document clearly said that “figures contained therein are disputed and subject to ongoing legally privileged commercial negotiations”.
Lawmakers took their turns to condemn the insistence of NLNG and the contractors on not making useful information available for the investigation.

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The contentious issues include 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 there are five variation requests being evaluated and they amounted to $7,609,678. Uwais also told the committee that the fluctuation in foreign exchange rate is a principal cause of contract variation.

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

This there led to argument and counter arguments between members of the Committee, NLNG Officials and Contractors.
The Committee adjourned to reconvene on July 3, 2024.

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