As the momentum gathers for the takeoff of the Nigeria LNG Train 7 Project, which Engineering, Procurement and Construction design is currently ongoing, certain salient issues associated with the project have begun to unravel thus raising concerns on the early take-off and successful completion of the $4 billion project which is expected to upscale the production capacity of the Nigeria LNG plant in Bonny from 22 million metric tonnes per annum (MTPA) to around 30 million metric tonnes per annum (MTPA). One of such issues is the implementation of the local content parameters in compliance to Nigeria’s extant regulations predicated on the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
A group, the Bonny National Grammar School (BNGS) Old Boys Association, through the Chairman of its Board of Trustees, Clinton Dan-Jumbo, a United Kingdom based international lawyer, in this telephone interview with Kristina Reports Publisher/Editor-in-Chief, Godswill Jumbo, raised concerns over the issue. Below are the excerpts of the interview for your read.
Kristina Reports: Your group, the Bonny National Grammar School (BNGS) Old Boys Association, sent a set of documents to us alleging irregularities associated with the contracting process for the Nigeria LNG Train 7 Project. Can we have better insight into what the issues are?
Clinton Dan-Jumbo: The Bonny National Grammar School (BNGS) Old Boys Association has threatened to take the Nigeria Liquefied Natural Gas (NLNG), The Bonny Kingdom Local Content Committee (BKLCCC) and SCD JV to court if they do not reverse the decision to include non-Bonny contractors in the Bonny contract quota for the Nigeria LNG Train 7 Project. As Chairman of the Board of Trustees of the BNGS Old Boys Association, and an international lawyer, although, I’m held back here in the United Kingdom due to the Covid-19 pandemic that has made international travel impossible, I have already instructed one of my four law offices in Nigeria to commence legal action against the trio if they fail to remove non-Bonny companies from the list of Bonny companies billed to take the 30% community content in the Train 7 project.
The breezy effrontery with which these organizations operate with blatant disregard for the Bonny people is just repulsive. How can the Federal Government make a law to protect host communities and a company operating in the community will connive with a few persons in the community to deprive the people of their entitlement? This is pure evil and must not go unchallenged. I am ready to take this matter all the way to the Supreme Court, if need be. The law is clear on this matter and we have to use NLNG and all those involved in this evil to test the law, so that other companies will learn to obey the law. Sections 25, 26, 27 and 28 (2) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act “mandates participation of host community entrepreneurs in the contractual commercial activities of the promoter, operators and contractors throughout the project life cycle”. The Community Content Guideline, however, goes on to state that: “The President of the Federal Republic of Nigeria launched the Petroleum Industry Roadmap on 27th October, 2016 to revitalize the oil and gas industry. A Key Performance indicator in the roadmap is to “Deploy 30% of business opportunities from operating companies to communities”.
I specialize in Commercial and Maritime Law and I studied for my Master’s degree in a very highly rated British University in this area of Law, so no one can pull a wool over my eyes on this matter. What the NOGICD Act and the Community Content Guidelines are saying is that 1) For the NLNG Train 7, 30% of business opportunities belong to Bonny people 2) That, apart from this 30% of the NLNG Train 7, that must go to the Bonny people, any company coming to do business in Bonny, whether or not it relates to NLNG Train 7, must maintain a level of presence in Bonny and again provide 30% of business opportunities to Bonny people. In order words, if a company is coming from any part of the world including Nigeria to do business in Bonny, the Bonny people have a right to tell the company to have an office in Bonny and to give 30% business opportunity of the value of his contract to Bonny people.
Since this is the law, I am surprised that non-Bonny contractors, who the law says should give out 30% of their own contract to Bonny people, went into an arrangement with NLNG, SCD JV and three or four Bonny people who call themselves BKLCCC to collect the Train 7 NLNG 30% that belongs to Bonny people in exchange for 23% profit payment at the end of the contract. They are not even talking about the 30% the law says they must give to Bonny people should they win a contract from SCD JV, but are focused on how they will collect the 30% belonging to Bonny people from the Train 7 project, adding that to their own 70%. Interestingly, it was also agreed that the contract will not be awarded in the name of the Bonny contractors, but in the names of the non-Bonny companies, meaning Purchase Orders (POs) and Project Completion certificates will be in the name of the non-Bonny company who have a right to bring their workforce from anywhere, denying Bonny youths employment opportunities that were naturally theirs in the first place.
Given the seriousness of these allegations you are making, have you tried to find out if the King and other traditional rulers of Bonny Kingdom and maybe the Chairman of Bonny LGA are aware of this development?
No! No!! No!!! I am very convinced they are not aware of this evil. I am sure you know how decent and forthright our traditional rulers are. They would have confronted NLNG if they were aware and the entire Bonny would have heard their voice. I believe the arrangement was discreetly done, which is why we are indebted to Mr. Omuso Ibiama, who drew the attention of the BNGS Old Boys to it.
Have you taken any steps to bring this matter to the knowledge of the Bonny traditional and political leaders?
Yes, of course, I wrote a personal letter to His Majesty, the King and copied our council of traditional rulers. However, I am not at liberty to disclose the content of that letter because it is a personal letter. But be rest assured I raised some of the issues I have talked about and I am sure our King and his Council will act.
As per the Nigeria LNG and SCD JV, what specific demands are you making of them?
Thank you for that question, it is a very simple demand. Firstly, that they comply explicitly with the NOGICD Act, by making sure that Bonny companies are awarded 30% value of the Train 7 contracts. Secondly, that any non-Bonny company that wishes to benefit from the Bonny 30% must have a Bonny man as a director in the company or enter a joint venture (JV) agreement with the Bonny companies. Thirdly, that they should be guided by the provisions of the Nigerian Content Act on employment of Bonny youths, ensuring that they comply with the 50% provision for semi-skilled labour, 10% for skilled and 20% for personnel. We are not just watching, we shall take action this time around to ensure that our people are not shortchanged. Thank you.
Is there a reason why the BNGS Old Boys got involved when it appears that they are not stakeholders in this matter?
You are very wrong on that because remember that the Bonny National Grammar School (BNGS) Old Boys Association is a legal entity fully registered with the Corporate Affairs Commission. So, as such it is a stakeholder in its own right in Bonny. However, more than 95% of our members are from Bonny and over 60% of them are contractors who will suffer the direct impact of this evil against the Bonny people. This further reinforces their status as stakeholders and, by extension, their platform BNGS also becomes a stakeholder, as whatever impacts the members economically also economically impacts on the organisation.
Given the fact that undertaking a case of this nature against these organizations will be very expensive, how does your organisation plan to foot the bill?
Well, I am the Chairman of the Board of Trustees and by the grace of God, I have four law offices across Nigeria, two in Port Harcourt, one in Lagos and another in Abuja. I have the resources to drive the process pro bono (free of charge) for the organisation. Let me also add that we have already started engaging their respective head offices abroad regarding their operations and blatant disregard for the laws of Nigeria while waiting to commence legal action against them at the expiration of our ultimatum.
Given the already invested resources of the non-indigenous companies in the process that has gotten them this far, which obviously, will imply losses should the whole process be reversed, what do you suggest should be the way forward for them?
Well, my suggestion is that the non-Bonny companies must stick to contracts awarded under the 70% quota for the rest of Nigeria. However, if they wish to participate in the Bonny 30%, they should either make Bonny people directors in their companies or enter into joint venture agreements with the Bonny companies so that the Bonny people in the non-Bonny companies either as directors or JV partners can guarantee and protect employment opportunities for Bonny youths and, even, have purchase orders (POs) and job completion certificates in their companies’ names.
I appreciate your efforts so far, God bless and guide you. Bonny youths are suffering. We have multinational companies but we don’t have work but outsiders are working. If you ask for your benefits they will sack you. Bonny man don’t have say in his own town. God bless you, we’re crying for help.
My contribution here is,
Almighty God, since all of us from Bonny can not jointly have the heart and willing powers, to fight this cause or course and problems,
Almighty Jah Jehovah,
You are greater, than the greatest, most powerful than the powerful, You authorised PHARAOH and came to pass, You decreed that Your people shall inherit and possess their land and it came to pass,
Please Lord, forgive our sins, sins of our parents and sins of our land,
And give your powers and strengths, that same powers and strengths you gave to MOSES’S and Your people of the old, and Your words manifested, came to pass and Your name was glorified,
To these our people who has given themselves to fight this issues on our behalf, that Your name Alone, will be glorified, Honoured and Adored, Both in Heaven and on Earth.
Thank You Lord of Heaven and Earth, The Alpha and Omega, The Omnipotent, Omnipresence and Omnipotent God, You, Who is not just Big, Who is not just Large, But Great and Mighty God, YOU ARE, for I believe, You have answered this prayers and other prayers, which others have made, And that will be made in our future.
Take all the Glories,
Take all Honours,
Take all our Praises and Magnifications, for You are really, worthy of our Praises.
For in The Mighty name of Your Son, Jesus Christ, Our Lord and Savior, I pray, Amen.
For example doing this pandemic NLNG pump out dangerous gases on air that killed many in Bonny, no one is saying anything. Indeed we’re suffering bro.
I appreciate your efforts so far, God bless and guide you. Bonny youths are suffering we have multinational companies but we don’t have work but asiders are working, if you and ask for your benefits they will sack you. Bonny man don’t have say in his own town. God bless you, we’re crying for help.
God bless you my own brother, we are dieing, I really do not think our leaders are not aware of this ill treatments, However we desperately need a savour, our youths have no voice anymore it’s talk and be shutoff. We are solidly behind you.
God bless you immensely Barrister for being a voice to the voiceless. Truly it is disheartening, knowing that we are being sidelined by those with selfish interests. I and every well meaning Bonny indigenes stands with you on this.
WHY DOES THE TRADITIONAL CLASS ALWAYS COLLUDE WITH EXTERNAL CORPORATE INTERESTS TO SUPPRESS THEIR COMMUNITIES’ COLLECTIVE INTERESTS?
There’s nothing that has happened that the concerned people are not aware,NLNG does not waive community entitlements benefits,but the indigenuos negotiators are still playing games with their peoples future.I rest my case.
May good gods of Bonny kingdom bless you sir. Im the gods chairman im happy to to read your open eyes massage. Please sir help can come over from anywhere, opuso asawo concern youth of finima Bonny kingdom. We believe the gods with our Hart anything we ask our opuso he doesn’t feel us. Please sir if you can give us a call a brother in Bonny island so we can fight together.
What is the stand of the traditional class? These predatory practices against our communities cannot be sustained without the collusion, connivance, condonation and complicity of part or all of the community leadership. It is an established negative pattern across the Niger Delta, especially in the riverine kingdoms. What do we do to get our traditional leaders to start to protect and proactively advance the interests and aspirations of their people? That is the real test.
Wow wow wow. Thank God we still have men with such zeel for the poor masses.
May the good Lord strengthen you for this humanitarian service. As we pray it will yeild fruits Indeed.