The Nigeria LNG (NLNG) Limited has declared force majeure because of the nationwide flooding that has disrupted supply.

On Monday, NLNG spokesperson, Andy Odeh, explained that it was forced to take the decision after all of its upstream gas suppliers announced force majeure.

“Force Majeure” is a common contract clause that effectively exempts parties from responsibility or obligation when an extraordinary event or circumstance beyond the parties’ control, such as a war, strike, riot, crime, epidemic, or sudden legal changes, prevents one or both parties from upholding their end of the bargain.

“The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” Mr Odeh said.

He detailed that NLNG was working to mitigate the effect of the force majeure.

The declaration might make Nigeria’s already dire economic circumstances even worse. 

The flood that has continued to wreak havoc in different parts of the country in recent months has claimed the lives of over 600 people and forced 1.4 million people to flee their homes.

Ninety per cent of Nigeria’s foreign exchange and about half of its budget are derived from the export of fossil fuels.

However, the nation has continued to lose the majority of its oil revenues  to organised theft that has been going on for years, forcing the nation to keep taking out loans to service its hefty budget 

Recall that earlier in October, the Nigerian National Petroleum Company Limited (NNPC) said that it had discovered an illegal connection line into the sea from one of its major oil export terminals that had functioned completely unnoticed for nine years.