“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.”
Business
Nigeria’s bid to nail P&ID in $9bn case suffers setback
![](https://newstrends.ng/wp-content/uploads/2020/11/Abubakar-Malami-1.jpeg)
Nigeria’s bid to set aside the $9bn P&ID Limited’s arbitration award has suffered a setback as VR Capital Group Limited has secured a United States’ court ruling to block the Federal Government from accessing its internal documents.
The move to access the documents was part of the government’s attempt to stop P&ID Limited, partly owned by VR, from collecting the nearly $9bn arbitration award.
US District Judge, Paul Engelmayer, in New York granted the hedge fund’s motion, overturning a ruling from May and quashing subpoenas issued by Nigeria.
Bloomberg reported that Nigeria sought the information to aid a corruption probe into P&ID Ltd., a company in which VR Capital acquired a 25 per cent interest in 2018.
Nigeria’s anti-graft agency is investigating a gas-supply contract a former minister concluded with P&ID in 2010 and subsequent arbitration proceedings that resulted in the hefty penalty against the country three years ago. The federal government alleged that the British Virgin Islands-registered company developed sham arrangements designed to fail and has accused P&ID of bribing its officials.
Nigeria is in English courts attempting to overturn both the 2017 arbitration award and a decision by a UK judge last year upholding it, claiming P&ID’s alleged fraud only recently came to light.
P&ID had denied any wrongdoing, saying Nigeria invented the accusations to evade its legal obligations.
Six months ago, Judge Lorna Schofield, also in the Southern District of New York, granted Nigeria permission to gather information from US banks concerning transactions involving companies and people affiliated with P&ID, as well as former government officials.
The Nigerian government also wanted VR Capital to hand over documents concerning its purchase of P&ID shares as well as the decade-old contract and ensuing arbitration.
But VR Capital applied to the federal court in New York to set aside the subpoenas principally on the grounds that Nigeria should have sought authorisation through its mutual legal assistance treaty with the United States. While the hedge fund is based in London, the four entities and two directors targeted by Nigeria are in New York.
Nigeria “misled” Schofield by denying any intention to use the documents in the English proceedings, according to Engelmayer’s November 6 opinion.
VR Capital claimed Nigeria would use the information provided by the hedge fund for the same goal.
Nigeria told Engelmayer that the main use of VR Capital documents would be in its domestic corruption probes. In his ruling, Engelmayer accepted Nigeria’s argument that it would be permissible for the government to present some material to support efforts to challenge the arbitration award in England.
However, a review of the request by the U.S. Justice Department under the treaty would help decide if the information sought was “genuinely intended for use in a criminal prosecution or investigation” or “the improper purpose of fortifying Nigeria’s attempt in the English courts to void the multi-billion-dollar arbitral award against it,” Engelmayer said.
It is unclear if Nigeria plans to submit a new application under the bilateral agreement.
“Delay tactics” adopted by VR Capital and P&ID are “prolonging the discovery process and preventing us from obtaining critical evidence,” a spokeswoman for Nigeria’s Attorney General and Minister of Justice, Mr. Abubakar Malami, said.
“These evasive efforts are manifestly inconsistent with P&ID’s position that it has nothing to hide,” she said.
“Misleading the U.S. court” is part of Nigeria’s last-ditch efforts to avoid payment of the arbitration award,” said Zachary Rosenbaum, a lawyer at Kobre & Kim LLP who is representing P&ID and VR Capital.
Nigeria scored a victory in September when a London judge ruled the government had established a “strong prima facie case of fraud” against P&ID and should be permitted to test its allegations at a trial to determine the legitimacy of the arbitration award.
Following the decision, Nigeria’s lawyers wrote to Engelmayer asking him to dismiss VR Capital’s motion.
Information collected from the banks had contributed evidence to the anti-corruption agency’s probe, which in turn had been “critical” to the country’s success in the English court, they said.
Business
Dangote Refinery can sell petrol to any marketer – NNPC
![](https://newstrends.ng/wp-content/uploads/2023/12/Dangote-Refinery-Welcomes-First-Crude-Oil-Shipment-scaled.jpg)
Dangote Refinery can sell petrol to any marketer – NNPC
The Nigerian National Petroleum Company Limited (NNPC Ltd) has said it has no desire or intention to be the sole offtaker of petrol produced by the Dangote Refinery Limited, DRL.
NNPC Ltd said this while reacting to claim by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the NNPC Ltd.
MURIC had in a statement issued on Friday claimed that recent changes to the pump price of petrol will prevent the Dangote Refinery from selling the product at lower prices to Nigerians.
The group also claimed NNPC Ltd. has become the sole offtaker of all products from the refinery.
However, Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd in a statement on Saturday dismissed the claims of MURIC.
While puncturing the claims of MURIC, NNPC LTD in the statement noted that the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces.
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The company thefore noted that recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.
Business
Forex: CBN sells $20,000 to each BDC at N1,580/$
![](https://newstrends.ng/wp-content/uploads/2021/07/dollars.jpg)
Forex: CBN sells $20,000 to each BDC at N1,580/$
The Central Bank of Nigeria (CBN) has announced plans to inject more liquidity into the foreign exchange market by approving the sale of US$20,000 to each eligible Bureau De Change (BDC) operator.
This move is aimed at meeting the growing demand for foreign exchange in the retail market, particularly for invisible transactions.
In a circular issued on September 6, 2024, and signed by Dr. W.J. Kanya, Acting Director of the CBN’s Trade and Exchange Department, the bank stated that eligible BDC operators would purchase the foreign currency at the rate of N1,580 per US dollar.
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The BDCs are permitted to sell the forex to end-users at a margin not exceeding 1% above the purchase rate.
To facilitate the process, the bank said eligible BDCs must make Naira payments into designated CBN deposit accounts and submit the required documentation at the appropriate CBN branches in Abuja, Awka, Kano, and Lagos for the collection of the approved $20,000.
This measure is part of CBN’s ongoing efforts to stabilize the forex market and meet demand for invisible transactions such as payment for personal travel, medical bills, and school fees.
Forex: CBN sells $20,000 to each BDC at N1,580/$
Business
Naira falls by N34 to dollar in 24hrs
![](https://newstrends.ng/wp-content/uploads/2023/06/Naira-back-market-dollar-to-naira-scaled.jpg)
Naira falls by N34 to dollar in 24hrs
The Nigerian currency, Naira, has plummeted to an unprecedented low, trading at a staggering N1,639.41 per dollar at the official market on Thursday.
This marks a sharp decline from the previous day’s rate of N1,606, reflecting a dramatic loss of N34.
In a parallel trend, the black market also saw the naira fall, with the exchange rate reaching N1,645 per dollar, down from N1,640.
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The worsening exchange rates signal deepening economic challenges and growing concerns over the stability of the national currency.
As the naira continues its downward spiral, analysts and market watchers are closely monitoring the situation, with implications for both the economy and daily lives of Nigerians.
Naira falls by N34 to dollar in 24hrs
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