News

FG cries foul, smells conspiracy in $9.6bn judgment debt

Buhari signs Finance Bill, approves 7.5% VAT increase

The Federal Government has revealed that preliminary investigations uncovered local and international conspiracy in the purported gas contract leading to award of 9.6 billion dollars judgment debt against Nigeria.

Nigeria’s Attorney-General and Minister of Justice, Abubakar Malami (SAN) made the disclosure during a media briefing on Tuesday in Abuja.

The briefing organised by the Minister of Information and Culture, Alhaji Lai Mohammed also had in attendance the Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed and the Central Bank Nigeria (CBN) Governor, Godwin Emefiele.

Malami said that the preliminary investigations showed 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.

According to him, 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.

“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 governmen’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. 

Comment With Facebook

Comments (192)

  1. Greetings. Ok, i’ll start by telling the author’s name – Thad. My family lives in California and so i love normal living now. Supervising has been her employment for a short while and it is something she revel in. The favorite hobby for him impressive kids in order to use jog but he’s thinking on starting something great. He’s been working on his website for enough time now. Go here here: #link#

  2. Hello, just wanted to say, I enjoyed this article. It was helpful. Keep on posting!|

  3. The author is called Rhett. Her family lives in Idaho. I used for unemployed acquire I am a cashier and it is something I absolutely love. To read comics precisely what I do every times. If you want to find out more the look at my website: #link#

  4. The author’s name is Thad Shattuck. It’s not a common thing but what I like doing is archery nevertheless can’t makes it my profession really. Puerto Rico wherever my residence is and I have everything which i need suitable here. Data processing is how I earn money. I’m not good at webdesign but you might in order to be check my website: #link#

  5. First off I want to say terrific blog! I had a quick question that I’d like to ask if you don’t mind. I was interested to know how you center yourself and clear your head before writing. I’ve had difficulty clearing my mind in getting my ideas out there. I do take pleasure in writing but it just seems like the first 10 to 15 minutes are usually wasted simply just trying to figure out how to begin. Any ideas or tips? Cheers!|

  6. There are certainly a lot of details like that to take into consideration. That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don?t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment?s pleasure, for the rest of their lives.

  7. Hi at that place. My name is Magali though Do not really like being called like by which. As a woman what she really likes is solving puzzles nowadays she is intending to earn with it. His day job is a procurement cop. For a while he’s been in Puerto Rico and his parents live nearby. She is running and maintaining a blog here: #link#

  8. The author is known by the category of Thad when he totally digs that name. California is where he’s always lived. I am really fond of climbing and I’ll be starting something else along the earth .. Administering databases has been his normal work for sometime. You can always find her website here: #link#

  9. Miss will be the name I prefer to be called with as it is not the name on my birth records. One of the very best things in entire world for him is archery and now he has time to battle new important subjects. I am currently an administrative assistant and it’s something Thought about enjoy. Vermont is the only place he’s been coping with. Check out the latest news on my website: #link#

  10. Excellent blog here! Also your website loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as quickly as yours lol|

  11. I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re incredible! Thanks!|

  12. Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I?d prefer to use some with the content on my blog whether you don?t mind. Natually I?ll give you a link on your web blog. Thanks for sharing.

  13. I’m Rhett Staff. Her family lives in North Carolina. As a man what I adore is to model trains and I’ll be starting another thing along you’ll. Administering databases is the place where she makes money but she intentions of changing the product. I am running and looking after a blog here: #link#

  14. Hi, its fastidious paragraph on the topic of media print, we all understand media is a great source of information.|

  15. Magali will be the name her parents gave her but she never really liked that name. He’s always loved living in Vermont. I used to be unemployed the difference is I am a recruiting assistant but soon my husband and i will start our own home based business. Researching fashion is something his wife doesn’t enjoy but he does. I’ve been working on my website for a while now. Try it here: #link#

  16. Your mode of telling the whole thing in this article is really good, all can effortlessly be aware of it, Thanks a lot.|

  17. Nice meet up with you, I am Lance Dorr and I totally love this advertsing name. Vermont is where my house is and mom and dad live neighborhood. She works as a messenger. It’s not one common thing but what he likes doing is baking but he’s thinking on starting something totally new. If you want to find out more check out his website: #link#

  18. After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.

  19. Enjoyed studying this, very good stuff, appreciate it.

  20. The author is known by the Violeta but she never really liked that headline. My friends say it isn’t good for me personally but a few things i love doing is to jog and I’ll be starting another thing along with it. For years he’s been inevitable Vermont. I am currently a cashier and it’s something I really enjoy. You can find my website here: #link#

  21. Hello. Permit me to introduce the author. Her name is Mahalia Buchholtz. Solving puzzles is what she loves doing. I am currently a procurement officer and the salary may be really fulfilling. Vermont has always been my living place however i will ought to move annually or double. If you want to find out more the look at my website: #link#

  22. I just want to tell you that I am all new to blogging and truly enjoyed this web site. Very likely I’m going to bookmark your site . You actually have excellent writings. Bless you for revealing your web page.

  23. What i don’t understood is in fact how you’re no longer actually a lot more smartly-preferred than you may be right now. You are so intelligent. You understand thus considerably on the subject of this matter, produced me personally imagine it from so many various angles. Its like men and women don’t seem to be involved unless it is something to do with Girl gaga! Your individual stuffs outstanding. All the time maintain it up!|

  24. There are certainly a lot of details like that to take into consideration. That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don?t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment?s pleasure, for the rest of their lives.

  25. It’s actually very complex in this active life to listen news on TV, so I only use world wide web for that purpose, and get the hottest information.|

  26. There are certainly a lot of details like that to take into consideration. That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don?t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment?s pleasure, for the rest of their lives.

  27. Magali may be the name mother and father gave her but she never really liked that name. He’s always loved living in Vermont. I used to be unemployed and then I am a hour or so assistant but soon my husband and i will start our own home office. Researching fashion is something his wife doesn’t really like but he does. I’ve been working on my website long now. Try it here: #link#

  28. Merely wanna state that this is very helpful, Thanks for taking your time to write this.

  29. The author’s name is Thad Shattuck. It’s not a common thing but what I’m keen doing is archery however can’t make it my profession really. Puerto Rico will be the my house is and I’ve everything when i need ideal here. Data processing is how I earn a living. I’m not good at webdesign we might to help check my website: #link#

  30. Hello, Neat post. There is a problem with your website in internet explorer, would check this… IE still is the marketplace leader and a big element of people will leave out your wonderful writing because of this problem.

  31. I get pleasure from, result in I discovered just what I was having a look for. You have ended my 4 day long hunt! God Bless you man. Have a great day. Bye|

  32. Rhett is what’s written on my birth certificate but I never really liked that name. To model trains is the thing I love most of all. Administering databases is where his primary income is produced by and his salary may be really pleasant. Her house has been in Nc and she loves per day living now there are. If you want to find uot more check out his website: #link#

  33. An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post!

  34. Undeniably imagine that which you stated. Your favourite reason seemed to be on the internet the easiest factor to understand of. I say to you, I certainly get irked while other people think about issues that they just don’t know about. You managed to hit the nail upon the highest as neatly as defined out the entire thing with no need side effect , other people could take a signal. Will likely be again to get more. Thanks|

  35. Good information. Lucky me I found your blog by chance (stumbleupon). I have book-marked it for later!|

  36. You could certainly see your expertise within the article you write. The world hopes for even more passionate writers such as you who aren’t afraid to say how they believe. Always go after your heart.|

  37. Hi correct. My name is Rayna. Office supervising already been his normal work for months. California is where home is and i also have like in I need here. It’s not only a common thing but what she likes doing is coin collecting but she can’t make certain it is her practise. Check out the latest news little website: #link#

  38. Can I just say what a comfort to find a person that actually understands what they are discussing on the web. You certainly realize how to bring a problem to light and make it important. A lot more people must read this and understand this side of your story. I was surprised that you aren’t more popular since you definitely have the gift.

  39. When I initially commented I seem to have clicked on the -Notify me when new comments are added- checkbox and now whenever a comment is added I receive four emails with the same comment. Is there an easy method you are able to remove me from that service? Kudos!

  40. When I originally commented I appear to have clicked the -Notify me when new comments are added- checkbox and now whenever a comment is added I recieve four emails with the same comment. Perhaps there is a means you can remove me from that service? Thank you!

  41. I have to thank you for the efforts you have put in writing this website. I really hope to see the same high-grade blog posts from you in the future as well. In fact, your creative writing abilities has inspired me to get my own, personal site now 😉

  42. It’s hard to come by experienced people in this particular topic, however, you sound like you know what you’re talking about! Thanks

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.