Business News
FG Orders Probe of $9.6bn UK Judgment Debt
*Nigeria’s Assets Not Under Threat-Lai Mohammed
By Justus Nwakanma, Abuja
The Federal Government yesterday ordered the probe of the administration of former President Goodluck Jonathan over what it alleged as international conspiracy in the purported gas contract leading to award of 9.
6 billion dollars judgment debt against Nigeria.National Intelligence Agency and the Inspector General of Police (IGP) have been directed to conduct a thorough investigation into Process and Industrial Developments Ltd which was recently asked by a UK court to seize $9.
6 bn dollars in Nigerian assets.Minister of Information and Culture, Lai Mohammed, disclosed this at a press conference in Abuja on Tuesday.
Mohammed said the decision was based on the fact that the Federal Government suspected foul play in the contract which was negotiated and signed in 2010.
He said, “We want to place on record that the Federal Government views with serious concerns the underhanded manner in which the contract was negotiated and signed.
“Indications are that the whole process was carried out by some vested interests in the past administration, which apparently colluded with their local and international conspirators to inflict grave economic injury on Nigeria and its people.
“In view of the above, and in an attempt to unravel the circumstances surrounding the entire transaction, the Honourable Attorney General of the Federation, with the approval of Mr President, has requested the Economic and Financial Crimes Commission, the National Intelligence Agency and the Inspector General of Police to conduct a thorough investigation into the company, the circumstances surrounding the agreement and the subsequent event, which includes commencing a full-scale criminal investigation.”
Mohammed, however, said despite the court judgement, Nigeria was not about to lose any of its assets.
He added, “Despite the recent recognition of the award by a UK court, and contrary to some reports, Nigeria is not about to lose any of its assets to P&ID. There is no imminent threat to Nigeria’s assets!
“In the first instance, the enforcement of the award cannot even commence now because the judge in the UK court ordered that the P&ID cannot enforce the judgment against Nigeria until after the court resumes from its current vacation.
“What this means is that enforcement action cannot begin until a further hearing on the matter, which will take place on a date to be determined by the court upon its resumption.
“The Federal Government, therefore, wishes to use this opportunity to assure Nigerians that there is no immediate threat to Nigeria’s assets as has been wrongly interpreted by a section of the media.
“Nigerians should be assured that the Federal Government is taking all necessary steps to appeal the decision of the UK Court, to seek for a Stay of Execution of the decision, to defend its rights and to protect the assets of the people of the Federal Republic ofNigeria.”
Mohammed was joined at the press conference by the Attorney General of the Federation, Abubakar Malami (SAN); Minister of Finance, Budget and National Planning, Zainab Ahmed; and the Governor of Central Bank of Nigeria, Godwin Emefiele.
Malami said preliminary investigations have revealed local and international conspiracy in the purported gas contract.
He said that the preliminary investigations revealed that the contract from conception was bound to fail because of deliberate inherent elements designed into it.
“I want to draw attention first to the composition of parties in the agreements which are the Federal Ministry of Petroleum Resources (FMPR) and the company, Process and Industrial Developments Ltd. (P&ID).
“As you rightly know, the federal ministry of petroleum resources is not a producer of gas.
“Gas products are produced by International Oil Companies (IOC) and NNPC.
“When you conceive, sign and execute a contract for the supply of gas products without involving the IOC and NNPC as parties to the agreement, you know very well that there are lot of questions to answer rising from the conception of the contract.
“This, among others, gave rise to the insinuation of fraudulent conspiracies right from the conception of the agreement.
“The fact remains that you cannot sign an agreement to provide a product that you do not have.
“The ministry does not have oil field and gas products but it went ahead to sign the agreement without involving those that are producers of gas products,’’ he said.
Malami said President Muhammadu Buhari had directed that a full scale investigation be carried out on the circumstances that led to the award.
He said the country, through the contract, was subjected to unnecessary economic sabotage and investigation would unravel those involved in the deal.
Corroborating Malami’s position, the CBN Governor said the claim by P&ID that it spent 40 million dollars on the botched contract was not correct.
“We have heard that the contractors in this case claimed that they spent 40 million dollars in the project.
“On our part in CBN, we know that as a foreign company, if you are investing in a contract or project in Nigeria, there are various options that you adopt.
“If you are bringing in machines into the country to execute a contract, you must fill certain forms and pay some money through the CBN.
Emefiele said: “We have gone through our records but we do not have any information to show that the company brought in one cent into the country for the purported project.
“We have accordingly written to the EFCC and other agencies investigating the case.
“Time has come that Nigerians should rise against those who claim to do business in Nigeria without investing a penny in the country but all with an intention to defraud the country.
“The money they are plotting to take belongs to all of us,’’ he said
The Finance minister on her part said the case was weighty considering the fact that the awarded 9.6 billion dollar is equivalent to N3.5 trillion.
“N3.5 trillion in our national budget will be covering for us recurrent votes if not more.
“Apart from being exorbitant, it is unfair and an assault to every Nigerian,’’ she said
According to Ahmed, every Nigerian must come together to ensure that the judgment is set aside because the consequences will affect everyone.
It will be recalled that in January 2010, the FMPR entered into a 20-year gas and supply processing agreement (GSPA) with P&ID to build a gas processing facility.
P&ID was to refine associated natural gas into non-associated gas to power the national electric grid.
Dr Rilwanu Lukman, who died in 2014, was the minister of petroleum at the time while late President Umaru Musa Yar’Adua was on a medical trip to Saudi Arabia.
Narrating the issues that led to the judgment, the information and culture minister said the 20-year Gas Supply Processing Agreement (GSPA) purportedly entered into with the P&ID in 2010, the company never performed as agreed.
“With the contract having suffered a setback, the case went to arbitration. P&ID’s claim in the arbitration proceedings was mainly for the loss of profit for the 20-year term of the GSPA.
“In an interim award, the Arbitration Tribunal ruled that Nigeria has breached the contract.
“Though Nigeria successfully applied to have that award set aside by the Federal High Court in Lagos, the Tribunal ignored this decision.
“Consequently, on January 31, 2017, the Tribunal rendered its final award against the Ministry of Petroleum Resources in the sum of 6.597 billion dollars.
“This was in addition to pre-award interest at the rate of seven per cent per annum, effective from March 20, 2013 and post-award interest at the same rate from the date of the award
“This interest increased the size of the award to 9.6 billion dollars,’’ he said.
Mohammed said that after the arbitration award in 2017, Nigeria made several attempts to negotiate the award and resolve the whole issue amicably with P&ID but to no avail.
He said following an enforcement proceedings instituted simultaneously by the company in the UK and the U.S., the government engaged the services of the U.S. law firm of Curtis, Mallet-Prevost, Colt & Mosle LLP.
The minister also reiterated government’s position on the underhanded manner in which the contract was negotiated and signed.
He said indications were that the whole process was carried out by some vested interests in the past administration.
Mohammed, however, assured Nigerians that contrary to reports in certain quarters, the country was not about to lose any of its assets to P&ID as a result of the judgment.
The Court on Friday ruled in the Bank’s favour on all issues and granted all its prayers.
United Bank for Africa (UBA) Plc has secured a significant legal victory in its debt recovery proceedings against Stallion Group, following a court judgment which upheld the Bank’s position on all issues submitted for determination.
In a sweeping decision, delivered by by Justice Daniel Osiagor of the Federal High Court sitting in Ikoyi, Lagos on Friday, the Court granted all the reliefs sought by UBA, affirming the validity of the appointment of a Receiver/Manager, the enforceability of the mortgage security and the liability of the guarantors.
The Court observed that the Defendants did not dispute the existence of their indebtedness to the Bank but challenged the amount claimed. It further held that the reconciliation of accounts between the parties did not extinguish or negate the underlying indebtedness.
In a major affirmation of UBA’s enforcement rights, the Court upheld the appointment of the Receiver/Manager and confirmed his entitlement to take possession of the mortgaged property and seek appropriate protective orders.
The Court also dismissed objections raised by the 12th Defendant, holding that it had failed to establish any proprietary rights over the mortgaged property. Consequently, its consent was not required for the creation of the mortgage, and its objections were rejected.
Significantly, the Court restrained the Defendants from diverting receivables due to them from government agencies, thereby reinforcing the Bank’s ability to protect its recovery interests.
The judgment also affirmed the liability of the guarantors, strengthening UBA’s legal position in pursuing recovery of the outstanding obligations.
The decision represents a comprehensive victory for UBA, with the Court resolving all issues in the Bank’s favour and granting all the reliefs sought.
The ruling is particularly significant for the enforcement of creditors’ rights in Nigeria, underscoring the legal validity of properly constituted security arrangements and the authority of duly appointed receivers to enforce creditors’ interests.
It also reinforces the principle that disputes over the precise amount of an outstanding debt do not, by themselves, invalidate the underlying indebtedness or prevent creditors from exercising their lawful recovery rights.
The judgment marks a major milestone in UBA’s efforts to recover its exposure to Stallion Group and safeguard the interests of the Bank and its stakeholders.
By Tony Obiechina, Abuja
The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.
In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.
According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.
However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.
The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.
On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.
The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.
At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.
From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.
To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.
Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.
“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.
The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.
The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.
By Jennifer Enuma, Abuja
President Bola Tinubu has congratulated Alhaji Aliko Dangote, the President of Dangote Group, on his appointment to the World Bank’s Private Sector Investment Lab, a body tasked with promoting investment and job creation in emerging economies.
In a statement by Special Adviser on Media and Publicity, Bayo Onanauga, the President described the appointment as apt, given Dangote’s rich private sector experience, strategic investments, and many employment opportunities created through his Dangote Group.
The Dangote Group became one of Africa’s leading conglomerates through innovation and continuous investment.
Dangote Group’s business interests span cement, fertiliser, salt, sugar, oil, and gas. However, the $20 billion Dangote Petroleum Refinery and Petrochemicals remains Africa’s most daring project and most significant single private investment.
“President Tinubu urges Dangote to bring to bear on the World Bank appointment his transformative ideas and initiatives to impact the emerging markets across the world fully” the statement said.
The World Bank announced Dangote’s appointment on Wednesday, as part of a broader expansion of its Private Sector Investment Lab. The lab now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.
The CEO of Bayer AG, Bill Anderson, the Chair of Bharti Enterprises, Sunil Bharti Mittal, and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian, are on the Private Sector Investment Lab with Dangote.
The World Bank said the expanded membership brings together business leaders with proven track records in generating employment in developing economies, supporting the Bank’s focus on job creation as a central pillar of global development.
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