Train 7: FG Summons NLNG, Contractors Over Alleged Tax Deductions Irregularities

The Federal Government has summoned the management of 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 summon, issued by the Federal Ministry of Labour and Employment, followed a petition by affected construction workers accusing the contractors of “abusive trade practices” in handling tax deductions from employees’ salaries.

According to the ministry, the allegations contravene relevant labor laws and regulations.

In a letter dated October 21, 2025, the Director of Trade Union Services and Industrial Relations, Falonipe Amos, stated that 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.

The meeting aims to resolve the dispute and address the workers’ grievances.

The Train 7 project, valued at $10 billion, has faced challenges, including a recent shutdown due to industrial unrest sparked by workers’ protests over tax deductions and other grievances.

The workers, mostly welders and fitters, alleged that the company deducted taxes from their salaries but failed to remit them to the relevant authorities.

“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 Ministry’s intervention comes amid rising tension among workers under the National Association of Plant Operators, NAPO, who accused Daewoo and its partners of deducting taxes without proper remittance to relevant government authorities.

According to the petition, the deductions span several months and allegedly involve multiple categories of staff at the multi-billion-dollar Train 7 project site, a flagship expansion effort expected to boost Nigeria’s LNG production capacity.

A source close to the Ministry said the government viewed the case as a “serious industrial infraction” with potential implications for worker welfare, project stability, and fiscal transparency.

In a reaction, Comrade Harold I. Benstowe, NAPO President General, commended the Minister of Labour and Employment for taking prompt action to address the grievances of the affected workers.

He described the summons as “a historic victory for construction workers in Nigeria,” noting that the directive to maintain status quo effectively halts further sackings or intimidation of workers pending the meeting outcome.

“The Honourable Minister of Labour and Employment has summoned NAPO and her members affected by the Daewoo E&C Nigeria alleged tax deduction and non-remittance fraud case alongside Daewoo, Saipem, and NLNG,” Benstowe said.

“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.”

NAPO also directed its members to prepare exhibits and evidence for presentation at the Abuja meeting, including payslips, bank statements, and Tax Identification Numbers, TIN, of affected staff.

According to the circular signed by Comrade Benstowe, the union will be represented by a six-man delegation comprising plant operators, welders, fitters, and general staff.

“Each representative group is to present at least six months’ payslips of ten staff, corresponding bank statements, and tax clearance certificates if available,” the circular stated.

“The deadline for submission of all exhibits is Monday, October 27, 2025.”

NAPO further alleged that some of its members had been unlawfully dismissed from their jobs by Daewoo E&C following protests 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,” the union vowed.

The union warned members against complacency, emphasizing that “unity of purpose remains the key to victory.”

The Train 7 project, executed by the SCD Joint Venture (Saipem, Chiyoda, and Daewoo), employs thousands of Nigerian workers and is one of the largest ongoing industrial projects in Africa’s gas sector.

Labour relations at the site have repeatedly drawn attention from regulators and union leaders over alleged breaches of worker rights, including excessive workloads, delayed remuneration, and tax irregularities.

NAPO urged the Federal Government to ensure transparency in the investigation and protect workers from victimization while the conciliation process is ongoing.

“We stand for fairness, dignity, and respect for the Nigerian worker. Injury to one is injury to all,” Comrade Benstowe declared.

“This is a defining moment for the Nigerian construction workforce. The eyes of the entire nation are on the Ministry to deliver justice.”

The conciliation meeting on October 30 is expected to determine whether the allegations against Daewoo, Saipem, and NLNG will escalate into formal sanctions, refunds, or possible court actions.