…As Daewoo, workers in endless disagreements
Daewoo Engineering & Construction Nigeria (DECN) which is handling a major portion of the construction of Train 7 in the NLNG in Bonny has continued to suffer frequent shutdowns due to industrial crisis.
The workers (mostly welders and fitters) have accused the company of overtaxing them and failure to remit the taxes of over alleged N5bn to the coffers of the government, thus allegedly keeping them (workers) outside legitimate tax net.
Daewoo has denied any wrongdoing, but the disagreement has led to frequent shutdown, even after the company would claim that all matters had been resolved.
In the latest development, Daewoo has issued another statement claiming that all matters have been resolved and that the company was not found liable, but until the workers admit it is so, the tension may continue.
By October 7, 2025, the workers issued fresh demands stating demanding that the welders and fitters coming back to site must not be made to face intimidation or signing of any undertaking.
A note distributed to the media and to some non-governmental organisations (NGOs) demanded for ‘total dissolution of Union executives with immediate effect’, and for an account of the taxes deducted from workers from inception of project. They also demanded for total refund of taxes imposed on the workforce, a deduction they dubbed fraudulent.
They made other demands including increase of hardship and feeding allowances, no sacking of workers for leading the protests, etc.
They suggested the need for representatives from each department be chosen to convey the message standing as one team.
The workers’ position came after Daewoo management had issued a notice of suspension work activities, effective from Friday, October 10, 2025, saying the safety of both personnel and equipment could no longer be guaranteed.
Daewoo thus shut down their own portion at the Train7 and directed workers to vacate from the work locations. The company also directed workers to vacate their rooms at the ‘Workers Village’ with effect from October 10, 2025.
The statement signed by management said: “All DECN own portion site workers are hereby put on standby until further notice. All accrued salaries up to October 9, 2025, would be remitted into individual bank accounts.
“Management will announce the resumption of site operation when the issues are resolved and the safety of employees and equipment can be guaranteed.”
By end of Friday, October 10, 2025, Daewoo announced that all matters concerning tax deductions at the NLNG Train 7 Project site “have been fully clarified and conclusively resolved in cooperation with the Rivers State Internal Revenue Service (RIRS).”
The company said following recent misunderstandings regarding tax deductions and clearance certificates, DECN requested the RIRS to review and verify the company’s overall tax compliance. “During the official review process, the RIRS confirmed the following key points:
“All Tax Identification Numbers (TINs) and Tax Clearance Certificates (TCCs) issued to DECN personnel are authentic, valid, and duly issued by the Rivers State Internal Revenue Service.
“DECN’s tax deductions, remittances, and filings have been accurately and transparently executed in full compliance with Nigerian tax laws. There are no outstanding tax liabilities, discrepancies, or irregularities associated with DECN.”
To ensure continued transparency and prevent future misunderstandings, DECN said they also conducted a short simulation demonstrating how employees can independently verify their tax information through the RIRS online platform. “This practical step further reinforced confidence among workers and stakeholders regarding the company’s compliance and accountability.”
The statement issued by Bernard Ewubare, Community Affairs and Security Manager of Daewoo, said the company reaffirmed that the tax matter has been completely resolved.
It said Daewoo was committed to maintaining a compliant, trustworthy, and productive working environment as it continues the successful delivery of the NLNG Train 7 Project.
The last time Daewoo issued this kind of notification last week, the workers said it was not true as this had never been the position of things. The workers said their issues had not been addressed, alleging with photographic evidence that they saw what looked like huge sums given to mediators in the matter.
Background to crisis:
Daewoo Nigeria began about middle of September 2025 fighting to restore stability at the Train-7 plant which was in turmoil. Though top managers in Daewoo suspected external influences, the crisis was due to mass protest by a section of the workers.
The workers claimed they were over 8,000 and that deductions from their taxes had run into several billions of naira.
The company said there was no tax fraud situation in Daewoo.
The workers had alleged that the deductions were not being remitted to the coffers of the government. They said they feared that the fast-approaching new tax law in January 2026 would hurt them if tax identification number (TIN) was not issued to them.
Some of the workers interviewed said the deductions ranged from N80,000 per month to N180,000.
The company said there was no tax fraud in Daewoo, and that it did not use uniformed men to intimidate protesting workers. It however acknowledged the issue of controversy surrounding tax receipts.
Daewoo further denied withholding the taxes, clarifying that tax deductions from workers were instantly remitted to the RIRS and tax receipts obtained and advanced to respective staff.
Management also said tax identification number was not generated by Daewoo but by the Joint Tax Board (JTB) and Federal Inland Revenue Service (FIRS). “Management also wishes to clarify that there is no incidence of fraud associated with tax deductions in DECN.”
The company promised to facilitate through the RIRS the provision of verifiable TIN having DECN code for accessibility to all welders/fitters within two weeks from 22/09/2025 to 04/10/2025. “Management is actively engaging with the welders and fitters as well as their respective unions to address the issue and this dialogue processes have reached advanced stages with an appeal for workers to give the management two weeks or fourteen days to resolve the issue.
On resolving the impasse, Daewoo said: “Management has been in active communication with the workers, unions, and other stakeholders with a view to communicating the state of things with all parties concerned in the matter with a view to resolving the issue.
“Management has agreed that in case of perceived over taxation of any Welder/Fitter, such matter should be made available with evidence of pay slip to the site representatives and forward to DECN human resource team for necessary attention.
“Management has also agreed with the various unions that no Welder/Fitter will be placed on redundancy within this period without being provided with his/her verifiable TIN. It has also not mandated any security agency to invite, arrest, interrogate or detain any worker with regards to the issue at hand.”
Daewoo however, alleged that some of the workers smashed glasses and caused some damages and assaulted their colleagues and even security personnel on duty. “Management wishes to inform that the project owner, Nigeria Liquefied Natural Gas Limited, project implementer, security agencies, and all relevant stakeholders are all informed that resolution processes have been activated to resolve the issue. The company appealed for calm and for all to maintain the existing good relationship.
The frequent shutdowns and denial by workers that the matter had been resolved seem to add tension and confusion in the crisis, making it difficult to know the true situation of work in the Train 7 project.
