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Our Approach

Nigeria LNG Limited's approach to Social P​erformance is anchored on sustainability, stakeholding and partnership. NLNG is guided in this by its conviction based on sound business principles that businesses must as a matter of course continuously strive to be a force for good within society.

NLNG therefore strategically conceives and implements projects at both national and local levels that will positively impact the lives of citizens. For example, in its host communities—Bonny Kingdom and the contiguous pipeline communities—NLNG supports the improvement of infrastructure, health and educational facilities, and encourages local enterprise, facilitating knowhow and building capacity in the sustainable use of resources.

The following are some of our Social Performance programmes at both local and national levels.

MOU with Bonny Kingdom

In 1998, the Joint Industry Companies (JIC), made up of NLNG, Shell Petroleum Development Company Limited (SPDC) and Exxon Mobil, signed an MOU with Bonny Kingdom. This MOU provided a framework which enabled the JIC to pool resources and provide the kingdom with the Bonny Master Plan, the 1.5km by-pass road, the 1.2km access road, uninterrupted electricity and potable water supply managed through a special purpose vehicle called Bonny Utility Company (BUC). Over the years, more than $182m has been spent by the JIC in delivering development projects on the Island.

In spite of this, there were still agitations for economic empowerment, employment and infrastructural development. It also became apparent that there was wholesome reliance on the JIC for economic development of the Kingdom.

This became the basis for the Pan Bonny Sustainable Development Conference which was convened on the 25th of May 2013 by His Majesty, King Edward Asimini William Dappa Pepple III, Perekule XI, Amanyanabo of Grand Bonny Kingdom, in conjunction with Bonny Chiefs' Council, and with the active support of the Joint Industry Companies (JIC) led by Nigeria LNG Limited to determine the future of development on Bonny Island. In the aftermath of the conference, concrete steps were taken to give effect to the resolutions adopted at the conference.

A major step in this regard is the signing of a new MOU between Bonny Kingdom and NLNG/SPDC on 3rd October, 2015. This MOU sets out the basis for community-led development under the auspices of a proposed Bonny Kingdom Development Foundation and the transfer/handover of the following initiatives—Bonny Utility Company, Ibanise Initiative and Bonny Vocational Centre — to Bonny Kingdom. Furthermore, the proposed Bonny Kingdom Development Foundation is expected to forge new partnerships and secure funding aside from the annual contributions to be provided by NLNG and SPDC, to drive the development of the kingdom as well as open up the space for other local and international donors, development partners and investors to key into Bonny's development potentials.

Accenture, a consulting firm, was engaged by NLNG to set up this Foundation, draw up a governance framework, design systems and procedures to guide the operations of the Foundation, handhold the community and grow her capacity in order to embed business and fiscal discipline in the operations of the Foundation.

It is expected that the full take-off of the Foundation and implementation of the master plan will herald tremendous development in Bonny Kingdom.

Bonny Utility Company (BUC) 

Bonny Utility Company manages the provision of power and water on Bonny Island. This is one of the initiatives handed over to Bonny Kingdom under the new MOU.

For power supply, BUC currently serves 15,236 households, essentially covering the entire Island via its power distribution network. It offers customers a progressive tariff schedule, i.e., free basic allowance followed by increasing, subsidised energy charges as a function of consumption. As a result, customers, who range from low-income households to larger service sector businesses, receive an indirect subsidy.

This initiative has, since its inception, provided Bonny Island with over 98 per cent uninterrupted power supply. The benefits have been tremendous. These include:

  • Increased pace of development, with total electricity consumption for 2019 standing at 120,408 MWh.
  • Creation of full-time and part-time jobs for the local community.
  • Years of uninterrupted operation, for the Island's local industries.
  • Better performance of public services; thriving businesses with machinery and equipment utilised at optimum capacity, while residential users experience higher comfort levels.
  • Environmentally friendly operations through the elimination of noisy, polluting generator sets.
  • Safe and secure environment at night due to the presence of functional street lighting.

BUC also handles the operation, maintenance and management of water facilities on Bonny Island.

The sustainable water development interventions provided by NLNG and its JIC partners include the multi-billion Naira drinking water infrastructure in the community which includes five water treatment plants with production capacity of 11.4 million litres/day distributed through a reticulated water system with availability of over 97 per cent and a test lab to monitor daily the quality of water produced and distributed. There are 1,200 direct connections to houses in Bonny and Finima.

The current water infrastructure is the result of a recently concluded Bonny Water Upgrade Project. The scope of Bonny Water Upgrade Project included:

  • Installation of about 110km water distribution network in the entire community, with HDPE pipes.
  • Drilling of four additional 300m–350m deep bore-holes and construction of 300 water fetching kiosks at different locations in Bonny and Finima for public use.