The Federal Government of Nigeria has called Saipem Nigeria Limited, Nigeria LNG Limited (NLNG), Daewoo Engineering and Construction Nigeria, and the National Association of Plant Operators (NAPO) to appear over allegations of fraudulent tax deductions and failure to remit workers’ Pay-As-You-Earn (PAYE) taxes on the NLNG Train 7 project in Bonny, Rivers State.
The Ministry of Labour and Employment took the step after receiving petitions from construction workers who accused the contractors of unfair trade practices and withholding tax payments. The workers said these actions violated both labour and tax laws.
In a letter dated October 21, 2025, Director of Trade Union Services and Industrial Relations, Falonipe Amos, stated that the Minister of Labour and Employment instructed all parties to attend a conciliation meeting on October 30, 2025, at the Federal Secretariat in Abuja. The Ministry asked everyone involved to maintain the current state of affairs until after the meeting.
The Train 7 project, valued at $10 billion, is one of Nigeria’s most ambitious industrial ventures aimed at expanding the nation’s LNG output. However, worker protests over unremitted taxes and poor welfare have disrupted operations several times in recent months.
Workers under the National Association of Plant Operators said Daewoo and its partners deducted taxes from their wages but never paid them to the relevant authorities. They described this as an outright breach of trust that undermines their financial security and violates the nation’s tax regulations.
An insider in the Labour Ministry told TechMarge that the allegations represent a serious industrial violation that could affect workers’ welfare, the project’s stability, and the transparency of corporate financial practices in the sector.
NAPO’s President General, Comrade Harold I. Benstowe, praised the Minister for responding quickly to the workers’ complaints. He called the intervention a significant win for construction workers across the country, saying it proved the government’s readiness to protect labour rights. According to him, the Minister’s office has stopped Daewoo E&C Nigeria from proceeding with redundancy threats or using joint security agencies to intimidate workers.
NAPO also instructed its members to gather proof of the alleged malpractice, including payslips, bank records, and tax identification details, ahead of the meeting in Abuja. The union said several workers lost their jobs after speaking out about the unpaid taxes and poor welfare, which it described as an attempt to silence dissent.
In a circular to members, the union promised to present a strong case on behalf of affected workers. It vowed to fight for the reinstatement of anyone dismissed unfairly and recover every kobo allegedly withheld from them.
The SCD Joint Venture, which includes Saipem, Chiyoda, and Daewoo, manages the Train 7 project and employs thousands of Nigerians. The joint venture has faced multiple investigations in the past over complaints about pay disputes and labour violations.
Officials expect the outcome of the October 30 meeting to determine whether the government will impose sanctions, demand refunds, or pursue legal action against the companies involved.
A report gathered by TechMarge noted that this case could become a defining test of how Nigeria handles corporate accountability and workers’ rights in major industrial projects.
