The Senate on Tuesday ordered Nigeria Liquified Natural Gas (NLNG) Limited to pay N18.4 billion in compensation to 73 communities in Rivers state for the acquisition of their property and the loss of use of the affected land due to pipeline rights of way through the towns.
The Senate has directed that this payment be made within 60 days.
Following a review of a report by the Senate’s Committee on Ethics, Privileges, and Public Petitions, the Senate decided that restitutions were required.
Senator Patrick Akinyelure (PDP Ondo Central), who presented the report, stated that 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 NLNG’s export terminal in Finima, Bonny Local Government of the state.
According to him, “that 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 one month to enable do so.”
In evaluating the NLNG’s request, the committee concluded that it was superfluous and unreasonable, having given NLNG one month early rather than the seven days permitted by the Senate at plenary to complete its report.
