The Federal Government has summoned Nigeria LNG Limited (NLNG), Daewoo Engineering and Construction Nigeria, Saipem Nigeria Limited, and the National Association of Plant Operators (NAPO) over alleged fraudulent deductions and non-remittance of workers’ Pay-As-You-Earn (PAYE) taxes on the NLNG Train 7 project in Bonny, Rivers State.
The summons, issued by the Federal Ministry of Labour and Employment, followed petitions from construction workers accusing the contractors of “abusive trade practices” and withholding tax remittances.
In a letter dated October 21, 2025, Falonipe Amos, Director of Trade Union Services and Industrial Relations, said the Minister of Labour and Employment has directed all parties to appear for a conciliation meeting on Thursday, October 30, 2025, at the Federal Secretariat in Abuja.
“Based on this apprehension by the Honourable Minister, both parties are requested to maintain status quo pending the outcome of the meeting,” the letter stated.
The $10 billion Train 7 project, a major expansion expected to boost Nigeria’s LNG output, has faced disruptions following industrial unrest by workers protesting over unpaid taxes and welfare concerns.
Workers under NAPO alleged that Daewoo and its partners deducted taxes from their salaries without remitting them to relevant authorities, a violation of labour and tax laws.
A source within the Ministry described the allegations as a “serious industrial infraction” with implications for worker welfare, fiscal transparency, and project stability.
Reacting to the summons, Comrade Harold I. Benstowe, NAPO President General, commended the Minister’s swift intervention, describing it as a “historic victory for construction workers.”
“This clearly shows that the office of the Minister, as the statutory body empowered to mediate, has suspended all actions of Daewoo E&C Nigeria regarding redundancy threats or use of joint security agencies to abuse workers,” Benstowe said.
The union has directed its members to compile evidence — including payslips, bank statements, and tax identification details — for submission ahead of the meeting.
It also alleged that some workers were unlawfully dismissed after protesting against the alleged tax malpractice and poor welfare conditions.
“We aim to make a strong case in favour of the workers, bring back all unlawfully sacked staff, and recover all monies allegedly defrauded from them,” NAPO said in a circular.
The SCD Joint Venture (Saipem, Chiyoda, and Daewoo) executing the project employs thousands of Nigerian workers and has faced repeated scrutiny from regulators and unions over labour rights violations and pay disputes.
The outcome of the October 30 conciliation meeting will determine whether the allegations lead to formal sanctions, refunds, or court actions.