Press Releases
print

IFC WILL NOT PROCEED WITH NIGERIA LNG PROJECT


Jeanne Segal
Phone: (202) 473-0393
Fax: (202) 676-0365


WASHINGTON, D.C., Nov. 10 -- The International Finance Corporation (IFC) has decided not to present to its Board of Directors a proposed investment in a liquified natural gas (LNG) project in Nigeria. The more than US$3 billion proposed project would develop a liquified natural gas field in southeastern Nigeria. IFC has been considering providing a loan of US$100 million as well as taking a 2 percent equity share in Nigeria LNG. The project is expected to result in a 25% reduction in gas flaring in Nigeria. The project would have represented the first time that the Nigerian Government's ownership stake would be reduced below a majority position in a hydrocarbon project in the country. In explaining the rationale of this decision, Jannik Lindbaek, Executive Vice President of IFC said, "Our partners have asked us to indicate the IFC position by November 15th. The merits of this project and its structure are sound. However, in discussions with the Nigerian Government, we have consistently made it clear that we c
ould only proceed if there was sufficient progress in certain critical areas of macroeconomic reform and if we felt we had the support of our member country shareholders. While there has been progress on the fiscal and monetary side, key policy decisions have yet to be implemented. In this situation, IFC is unable to proceed." IFC is the private sector development affiliate of the World Bank Group.