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17 Oct 2025, Fri

Rivers Workers Short Down FG’s $10bn NLNG Train 7 Project in Bonny

By Peter Onyekachukwu

The $10 billion Nigeria Liquefied Natural Gas (NLNG) Train 7 project in Bonny Island, Rivers State, has again been crippled as workers accuse contractors of tax fraud, raising fresh questions about transparency and workers’ rights in one of the Federal Government’s most strategic investments.

On Tuesday, welders and fitters employed by Daewoo Engineering & Construction Nigeria (DECN) and Saipem shut down operations, alleging that the companies have deducted heavy taxes from their salaries for over three years without remittance to the Federal Inland Revenue Service (FIRS).

The aggrieved workers said the deductions have not only eroded their take-home pay but also left them without tax identification numbers or clearance certificates—requirements the Federal Government insists every Nigerian must possess from 2026.

“This is not just about money; it is about accountability,” said Utin Wisdom Ifiok, a pipe fitter with Daewoo. “We have been taxed up to ₦150,000 monthly with no receipts, no records, and no tax clearance. If the government is serious about reforms, this is where it must start.”

Investigations reveal that junior staff earning about ₦219,000 monthly reportedly lose up to ₦40,000 to unverified tax deductions, while welders and fitters earning ₦400,000 face as much as ₦150,000 in deductions. None of the affected workers have seen any evidence of remittance.

The development comes barely two weeks after an earlier protest at the same facility, heightening concerns that Nigeria’s flagship gas project could face prolonged disruptions if the dispute is not resolved.

Industry watchers warn that beyond the industrial action, the allegations raise credibility issues for foreign contractors operating in Nigeria’s oil and gas sector, particularly as the government seeks to attract new investments.

President of the National Association of Plant Operators (NAPO), Mr. Harold Benstowe, condemned reports that protesting staff were locked inside their camps during the demonstrations. He called for urgent intervention by the Ministers of Labour and Finance, alongside the military high command, to prevent escalation.

As of press time, the management of NLNG, Daewoo, and Saipem had yet to issue official statements, leaving uncertainty over the next steps in a dispute that could dent Nigeria’s push for energy sector reforms.