The management of the Nigeria Liquified Natural Gas (NLNG) Limited, is currently reviewing the position expressed by the Senate ordering it to pay N18.4 billion compensation to some communities in Rivers State.
The company said, its attention was drawn to a resolution passed by the Senate, following the consideration of a report by its Committee on Ethics, Privileges and Public Petitions, sequel to a petition relating to compensation for the acquisition of a Right of Way across some communities.
In a statement by the general manager, External Relations and Sustainable Development, Andy Odeh, stated that the NLNG is evaluating the resolution and circumstances surrounding it, insisting that the company has always conducted its business responsibly and in accordance with the laws of the Federal Republic of Nigeria, including in this specific matter.
The senate on Tuesday directed the NLNG, Limited to pay N18.4 billion compensation to 73 communities of Obiafu, Soku to Bonny in Rivers State for acquiring their land and loss of use of the affected land to pipeline Rights of Way through the communities.
The senate further directed that the payment should be made within 60 days.
The resolutions were adopted after the Senate considered the report of its Committee on Ethics, Privileges And Public Petitions that investigated a petition by the communities.
Presenting the report, the committee chairman, Senator Patrick Akinyelure, said following its incorporation, the NLNG acquired landed properties in Rivers State spanning over 210 kilometres for use as its pipeline Right of Way which ended at the export terminal of the NLNG in Finima, Bonny local government of the state.
According to him, “There were over 73 communities and over 200 families whose hitherto agrarian source of livelihood were negatively impacted upon by the said acquisition.
“That after the recent intervention of the Senate and after being given one month instead of 7 days allowed by the Senate to provide evidence of payment to the Committee, the NLNG could only show evidence of payment to some individuals, families and communities.
“The total amount it paid for part of the 210 kilometres of land acquired for pipelines Rights of Way was N74,642,773.00 which is not significant when compared to the sum of N18.4 billion approximately demanded by the 73 communities and over 200 families, which has never been objected to by the NLNG up till now.
“That the payment made covered only 39 communities and 73 individuals and families; and that there was no Memorandum of Understanding (MOU) signed between the communities and NLNG on future obligations in the name of Corporate Social Responsibility with the impacted communities.
“There was evidence that other oil companies such as Shell Petroleum Development Company, Totalfina, Elf Petroleum, Agip Oil Company paid compensation for the loss of use of land to their host communities.
“NLNG confessed that the payments were made long ago and could not reasonably trace most of the payments documents but promised to look for further evidence to show that it paid stakeholders concerned if given another month to enable do so.
“The committee considered their request unnecessary and unreasonably, having granted NLNG one month earlier instead of 7 days allowed by the Senate at plenary to conclude its report.”
