chevron_logoThe Trade Union Congress of Nigeria (TUC) says the recent withdrawal of Shell and Chevron Nigeria Limited from OKLNG project will discourage investments in the nation’s gas sector.

Rivers State chairman of the union, Comrade Chika Uneagbu, told our correspondent on Monday that if government does not change its approach, the gas revolution may end up as a paper work.

According to him, the withdrawal should be a wakeup call for Nigeria that  undue delay in maturing investment proposals  and progressing of investment decisions and projects through to the Final Investment decision gate is no longer fashionable in a fast changing and dynamic world.

“A situation where for eight years a project could not be progressed through the FID stage is unacceptable. There is need for the Minister of petroleum to call for information on the status of several other investment projects and proposals with a view to fast tracking them.

“The reforms actually started on April  24 2000 with the inauguration of the Oil and  Gas Implementation Committee (OGIC). 13 years after, the reform is still at the stage of a bill. This I-don’t-care approach to issues in an industry that is global and dynamic will hurt the Nigerian economy.”

The TUC chairman also spoke on the award of oil acreages in the country, saying in order to ensure healthy award of same, the federal government should ensure the quick passage of the PIB which must provide for total transparency with regards to award of all  contracts and licenses, and other accompanying processes.

He said this should closely follow the guidelines of both the Extractive Industries Transparency Initiative (EITI) and the Nigeria Extractive Industries Transparency Initiative.

He said:’’Also the discretionary power of President to  award oil acreages, grant licenses and leases without a transparent competitive process should be repealed. The section 191 of the PIB should similarly be totally expunged.

It is not healthy and is susceptible to abuse. It is not in the best interest of Nigeria’’


Information from Daily Trust was used in this report.