Amendment of the NLNG Act: Matters Arising For Large Scale Investments in Nigeria

As the Nigerian House of Representatives hinges towards the passage of the amendment of the Nigeria LNG (Fiscal Incentives’, Guarantees and Assurances) Act (the “NLNG Act”), through a legislative instrument currently styled, “A Bill for an Act to amend the Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act” (the “Amendment Bill” or the “Bill”) several issues have been thrown up both by the antagonists and the proponents of the Amendment Bill.

Simply, the Bill seeks to amend the NLNG Act by expressly subjecting the Nigeria LNG Limited (“NLNG” or the “Company”) to pay 3% of its total annual budget to the Niger Delta Development Commission (“NDDC” or the “Commission”).

This piece takes a cursory look at the NLNG Act, the Amendment Bill, the brewing investment dispute and the reality of statutory and contractual protections for large-scale investments in Nigeria.

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