Business

FG Raises Fresh Fraud Claims against P&ID Ahead $11bn Trial

Published

4 years ago

August 16, 2022

•Nigeria moves to prove firm secured contract through bribery, lies

Nigeria has levelled fresh claims of fraud against a little-known offshore firm, Process and Industrial Developments (P&ID), which earlier won an $11 billion arbitration award against the country, ramping up the pressure ahead of one of the biggest London trials to take place next year.

The federal government would seek to prove to the court that P&ID did not make full disclosure to the court in the first place in the course of the case.

As it attempts to show the court that the contract was corruptly procured, it would also urge the firm in the eye of the storm to answer the following questions:

“Did P&ID, or any individual or company associated with P&ID, make, procure to be made by any other person, or promise to make payments” to or on behalf of various Nigerian officials, including one Ms Taiga, Mr. Tijani, Mr Dikko, Mr. Rilwanu Lukman or Mr Ibrahim?

“Did P&ID collude with and/or communicate with and/or enter into a corrupt agreement with and/or make payments to Mr Shasore and/or any other person directly or indirectly involved in the FRN’s defence (including Ms Adelore and Mr Oguine), before, during or after the arbitration, with a view to influencing the conduct of the FRN’s defence in the arbitration?

“In what circumstances did the FRN engage Mr Shasore (and/or his firm) in respect of the arbitration? Did Mr Shasore conduct the arbitration in a manner contrary to Nigeria’s interests and/or instructions, and if so, why?”

“Did P&ID induce Ms Taiga or any other Nigerian official to depart from the terms of the FRN’s model arbitration clause in the Gas Sales and Purchase Agreement (GSPA)?” according to court filing.

An update on the legal tussle also showed that the Federal Government of Nigeria (FRN) has been successful in its bid at the London High Court to obtain further documentation in support of its efforts to set aside the $11 billion arbitration award.

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In the recent hearing, Mr. Justice Jacobs judged that the approach taken by P&ID to providing disclosure of WhatsApp/SMS messages had not been entirely satisfactory to date and as such it would be reasonable and proportionate for P&ID to disclose further information related to private WhatsApp/SMS messages sent between key figures associated with the company over a period of several years. Nigeria’s government hoped that disclosure of the messages would further reveal the questionable activities of the company ahead of the High Court trial due to begin in January 2023.

A spokesperson for the Federal Republic of Nigeria who pleaded to remain anonymous, was quoted to have said: “The Federal Republic of Nigeria remains dedicated to overturning arbitral award of around $11 billion and is leaving no stone unturned in its fight through the courts.

“This is another step in our long running effort to reveal who stands to benefit from one of the world’s largest scams. Today’s judgment will help us have greater access to messages sent between the senior figures associated with P&ID which is vital ahead of the trial which will begin in the High Court in January 2023.”

However, a Bloomberg report yesterday stated that Nigeria would try to overturn the penalty by proving that P&ID secured a gas-supply contract and the subsequent arbitration victory through bribes and lies.

The federal government had sought to convince a United Kingdom (UK) High Court that the purported $9.6 billion contract, which had now generated additional interest with P&ID, for a 20-year deal to turn Nigeria’s gas reserves into electricity, was a scam ab initio.

The lawyers representing the Nigerian government told Sir Ross Cranston, head of the court, that P&ID knew from the beginning that there was no deal, noting that it was only a facade to fleece the Nigerian people.

P&ID founded by the late Michael Quinn and Brendan Cahill, the lawyers told the court, had no intention to perform any obligation concerning the purported contract, reason the company went about bribing Nigerian government officials at the time.

The company had taken legal action against Nigeria for alleged breach of contract, with a panel of three arbitrators voting 2-1 to award P & ID the full sum of its claim of $6.6 billion at the time, plus interest, which spiked the arbitration value to about $9.6 billion.

In January 2010, Nigeria allegedly signed the gas-processing project, but two years later, the company began an arbitration process, alleging breach of contract.

In July 2015, a London tribunal gave judgement in favour of the company and in January 2017, gave the final award of $6.6 billion, with an interest rate of seven per cent, pre and post judgement.

Citing fraud, the federal government had ordered an investigation by the Economic and Financial Crimes Commission (EFCC) and in January requested a hearing to present evidence that the so-called deal was a fraud.

The project first started under the petroleum minister at the time, Mr. Rilwanu Lukman, who died in 2014, whom the Nigerian legal representative said yesterday spearheaded the alleged fraud.

The federal government told the judge that Lukman and several government officials knew the agreement was a sham and stood to make financial gains.

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A tribunal granted the company the damages in early 2017, after finding that the government had breached the original agreement.

P&ID didn’t respond to a request for comments, according to Bloomberg, but had repeatedly denied the allegations. It insisted that President Muhammadu Buhari’s government concocted the claims to avoid its legal obligation to compensate the British Virgin Islands-registered company.

The potentially costly crisis for Nigeria stems from a deal struck in 2010, where the government agreed to provide gas to a plant P&ID proposed to build.

Buhari’s administration now argues the project was a “sham” from the outset designed by the company and corrupt public officials to engineer the successful arbitration claim that a tribunal delivered more than five years ago.

The government introduced the fraud allegations after a UK judge ruled in August 2019 that P&ID could enforce the award, which has increased with interest from an initial $6.6 billion.

Nigeria discovered late last year that P&ID was, “in possession of numerous documents which might be privileged and confidential” to the government, it said in documents prepared for a London court hearing last month.

While the “full details” of how P&ID obtained the documents “remain obscured,” it was to be “inferred” they were provided to the company by a former legal director at the petroleum resources ministry and “other corrupted individuals” acting on behalf of the government, Nigeria claimed.

Granting Nigeria permission to proceed to a full trial, Judge Cranston had said in September 2020 the government had established a strong case that the contract was “procured by bribes” and the arbitration was “tainted.”

There is “a possibility” that Olasupo Shasore, the state’s lawyer during most of the arbitration, was “corrupted,” he had said.

Shasore didn’t respond to a request for comments, according to Bloomberg.

P&ID rejected Cranston’s conclusions in its skeleton argument last month, telling the court that Nigeria’s allegations are “clearly unfounded.” The eight-week fraud trial is scheduled to start in January.

The Nigerian government “keenly awaits the opportunity to present its case before the High Court” and “is confident that justice will finally be served,” a spokesman told Bloomberg by email.

An image of at least one of the privileged documents was supplied to P&ID by Adetunji Adebayo, a Nigerian businessman active in the oil and gas industry, who signed an agreement with the company in 2014 instructing him to facilitate negotiations around a potential settlement during the arbitration, according to the government’s skeleton argument.

Adebayo was entitled to up to half of any pay-out above $1 billion, the court document said.

The company’s co-founder, Brendan Cahill, secured the “silence” of one of his former employees who had offered in 2020 to act as a witness in the trial by entering an agreement that is “contingent on P&ID succeeding in its claim,” Nigeria further alleged last month. Neither Adetunji nor Cahill responded to requests for comments.

Following the most recent London hearing, another London judge ordered P&ID to disclose additional information, including WhatsApp and text messages.

Thisday

Business

After two decades, Tinubu approves Cabotage fund for Nigerian shipowners

Published

2 hours ago

September 7, 2026

Trends Admin

Minister of Marine and Blue Economy, Adegboyega Oyetola

After two decades, Tinubu approves Cabotage fund for Nigerian shipowners

President Bola Tinubu has approved the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners, more than 20 years after the fund was established to promote indigenous participation in the country’s maritime industry.

The approval, announced on Sunday, September 6, 2026, is expected to end years of uncertainty surrounding the CVFF and provide Nigerian shipowners with access to long-term financing for the acquisition of vessels and expansion of their operations.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed the development in a statement issued by his Special Adviser, Bolaji Akinola.

Oyetola directed the Nigerian Maritime Administration and Safety Agency (NIMASA) and the 12 approved Primary Lending Institutions (PLIs) to fast-track the processing and disbursement of the fund to eligible applicants.

According to the minister, the move is designed to unlock investment in Nigeria’s maritime sector, increase indigenous ship ownership, strengthen the country’s participation in coastal and offshore shipping and create thousands of employment opportunities.

NIMASA has so far received 92 applications from prospective beneficiaries seeking financing under the CVFF programme. Twenty applications have already been forwarded to the approved lending institutions, while one has been reviewed and sent forward for final approval.

The development marks the latest stage in the Federal Government’s efforts to transform the CVFF from a long-standing pool of accumulated funds into an operational financing facility for Nigeria’s indigenous shipping industry.

The CVFF was created under the Coastal and Inland Shipping (Cabotage) Act to provide financial support to qualified Nigerian operators for the acquisition of vessels and development of domestic shipping capacity.

The facility is particularly important because Nigeria’s maritime sector has historically relied heavily on foreign-owned vessels for several coastal and offshore operations, limiting the amount of revenue retained by indigenous operators.

Through the CVFF, the government seeks to enable qualified Nigerian shipowners to acquire modern vessels, expand their fleets and compete more effectively for contracts within the domestic maritime market.

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The fund is structured to provide long-term financing at a relatively low interest rate, with the current framework designed to make vessel acquisition more accessible to indigenous operators.

NIMASA had previously disclosed that the financing arrangement would provide for a single-digit interest rate, a two-year moratorium and an eight-year repayment period.

Under the framework, NIMASA is expected to provide 50 per cent of the financing, while the participating lending institutions would contribute 35 per cent and beneficiaries would provide the remaining 15 per cent as equity.

The number of participating Primary Lending Institutions was increased from five to 12 to widen access to the facility, improve competition among lenders and reduce delays associated with loan processing.

The expansion is also expected to give applicants more options when seeking financing and strengthen the financial oversight of the programme.

Oyetola had earlier directed NIMASA in April 2025 to begin the process of operationalising the Cabotage Vessel Financing Fund, reviving efforts to disburse the facility after years of administrative stagnation.

The process received another boost in January 2026 with the launch of the CVFF Application Portal in Lagos.

The portal was designed to provide eligible shipowners with a more transparent and structured process for submitting applications and tracking their financing requests.

The latest presidential approval therefore builds on several reforms introduced by the Ministry of Marine and Blue Economy and NIMASA over the past two years.

The CVFF has a long history of delayed disbursement.

In December 2019, the Federal Government announced that then-President Muhammadu Buhari had approved the release of the fund to indigenous shipowners, with the accumulated amount at the time reportedly estimated at N44.64 billion.

Despite the announcement, the fund did not translate into sustained financing for Nigerian shipowners.

In 2023, the House of Representatives intervened over concerns surrounding the management and proposed disbursement of the fund.

The House investigated the amount accumulated under the scheme, the proposed financing arrangements and the process for selecting beneficiaries.

Following the investigation, lawmakers approved the disbursement of an estimated $360 million to qualified Nigerian shipowners.

However, the implementation of the disbursement continued to face delays.

By April 2025, NIMASA estimated the value of the fund at about $700 million and announced plans to commence disbursement under a revised financing structure.

The latest approval by President Tinubu is therefore another significant attempt to move the fund from years of accumulated resources and administrative delays to actual financing for indigenous operators.

The Federal Government expects the programme to have an impact beyond vessel ownership.

According to Oyetola, the initiative could generate more than 30,000 direct and indirect jobs across shipyards, marine engineering companies, maritime logistics firms and other businesses connected to the maritime value chain.

Greater indigenous ownership of vessels could also stimulate demand for shipbuilding, vessel repairs, marine engineering, maritime insurance, logistics and other specialised services.

The government believes this could help Nigeria retain a larger share of the economic value generated from activities within its territorial waters.

The CVFF disbursement is also coming as Nigeria seeks to improve its international maritime profile.

In August 2026, the United States Coast Guard lifted a 12-year Condition of Entry imposed on Nigerian vessels arriving at US ports.

The restriction, introduced in 2014 over concerns about maritime security standards, had subjected Nigerian vessels to additional requirements when entering US ports.

Its removal is expected to improve the operating environment for vessels trading between Nigeria and the United States, potentially reducing additional compliance costs and improving turnaround times.

The development has added momentum to Nigeria’s efforts to strengthen maritime safety, security and compliance with international standards.

For the Federal Government, strengthening indigenous shipping capacity remains a key component of its broader Blue Economy strategy.

The administration has identified the maritime sector as an area capable of attracting investment, creating jobs, expanding trade and increasing Nigeria’s revenue from its extensive coastal and offshore economic activities.

For Nigerian shipowners, however, the immediate focus will be on whether the latest approval translates into actual access to financing.

With 92 applications already received and 20 forwarded to lending institutions, the next stage will involve detailed assessment, approval and eventual release of funds to successful applicants.

The government’s challenge will be to ensure that the process remains transparent, commercially sustainable and accessible to genuinely qualified Nigerian operators.

After more than two decades of delays, investigations and repeated promises of disbursement, President Tinubu’s latest approval represents a major opportunity to finally make the Cabotage Vessel Financing Fund a functioning source of capital for Nigeria’s indigenous shipping industry.

After two decades, Tinubu approves Cabotage fund for Nigerian shipowners

Auto

Kaduna to Lead Govt Patronage of Local Vehicles as Sani Unveils Peugeot 5008

Published

9 hours ago

September 7, 2026

Trends Admin

Kaduna to Lead Govt Patronage of Local Vehicles as Sani Unveils Peugeot 5008

Kaduna State Governor, Uba Sani, has pledged to lead a fresh push for government patronage of vehicles assembled by Dangote Peugeot Automobile Nigeria (D-PAN), promising to make a strong case for the company at the National Economic Council (NEC).

Sani, who made the commitment while unveiling the new Peugeot 5008 2026 model at the D-PAN plant in Kaduna on Friday, said increased patronage by Federal and state government Ministries, Departments and Agencies (MDAs) was critical to sustaining local vehicle assembly, protecting jobs and strengthening Nigeria’s automotive value chain.

The governor’s intervention comes amid renewed efforts to revive Nigeria’s automotive manufacturing industry by increasing local vehicle production and reducing dependence on imported completely built units.

Industry stakeholders have consistently identified government fleet procurement as a major instrument for creating sustained demand for locally assembled vehicles and encouraging investment in assembly plants.

With government agencies operating large vehicle fleets nationwide, stronger preference for locally assembled automobiles could provide the market certainty required by assemblers to expand production, develop local suppliers and deepen technology and skills transfer. It could also support the broader objective of increasing local content in Nigeria’s automotive industry.

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Against this background, Sani said government patronage remained crucial to ensuring the sustainability of local assembly operations and encouraging further investment in the sector.

“I will make a strong presentation at the National Economic Council, urging both the Federal and state governments to patronise the products of this company because that is the only way they can survive,” Sani said.

He also announced that the Kaduna State Government would procure some vehicles from D-PAN, saying the state would lead by example and encourage other governments to patronise locally assembled automobiles.

“As a government, Kaduna State will order some of the vehicles, so that we can show the example for others to follow by patronising this very important company,” the governor added.

Sani pledged continued support and collaboration between the Kaduna State Government and D-PAN, stressing the importance of strengthening local manufacturing as part of efforts to grow Nigeria’s industrial base.

He said D-PAN had made significant contributions to Kaduna’s economy through job creation, skills development and business opportunities for communities within and around its operating environment.

The governor also urged the company to consider employing graduates of the Kaduna State Institute of Vocational and Skills Development, who, according to him, recently completed intensive training in partnership with the National Board for Technical Education (NBTE).

Sani commended D-PAN for its Corporate Social Responsibility (CSR) initiatives in communities around its plant, while urging the company to further expand its support for the host communities.

He said the peaceful relationship between D-PAN and its host community was important to the sustainability of the company’s operations, stressing that continued investment in the welfare and development of surrounding communities would help preserve the harmony.

Kaduna to Lead Govt Patronage of Local Vehicles as Sani Unveils Peugeot 5008

Auto

NAJA 19th Auto Awards: Industry’s best to battle for honours December 3

Published

2 days ago

September 5, 2026

Trends Admin

NAJA 19th Auto Awards: Industry’s best to battle for honours December 3

The battle for recognition among Nigeria’s automobile brands, executives and industry players will reach its climax on December 3, 2026, as the Nigeria Auto Journalists Association (NAJA) stages the grand finale of its 19th annual automotive awards.

The prestigious ceremony, scheduled for the Civic Centre, Victoria Island, Lagos, is expected to bring together leading automobile manufacturers, distributors, dealers, financial institutions, policymakers, motoring enthusiasts and other major stakeholders in the automotive industry.

The organisers said the 19th edition is being designed to surpass previous editions in scale, organisation and glamour, without compromising the credibility and professional standards for which the awards have become known.

Chairman of the 2026 NAJA Awards Planning Committee, Frank Kintum, said the committee was determined to deliver a ceremony that would reflect the growing importance of the automotive industry to Nigeria’s economy.

According to him, the awards have evolved beyond a mere celebration of popular brands to become a platform for identifying and rewarding individuals, companies and products that have made measurable contributions to the development of the sector.

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Kintum said the 19th edition would be “bigger and more glamorous” than previous editions, adding that the committee was working to ensure that every aspect of the ceremony reflects the quality, innovation and achievements of the industry.

He said products, brands and personalities would be assessed across relevant segments of the automotive sector, with winners emerging through the approved NAJA awards modalities.

Also speaking on the awards, NAJA Chairman, Theodore Opara, said the association was focused on rewarding genuine excellence rather than simply celebrating the biggest players in the market.

Opara said the objective was to recognise individuals and organisations that had demonstrated measurable excellence and made meaningful contributions to the growth and transformation of Nigeria’s automotive industry.

He noted that the awards had continued to gain relevance among industry stakeholders because of the credibility attached to the judging and evaluation process.

The 2026 edition comes at a critical period for Nigeria’s automotive industry, which is undergoing significant transformation driven by emerging technologies, electric mobility, local vehicle production, changing consumer preferences and evolving government policies.

Against this backdrop, NAJA said the awards would provide an opportunity to celebrate companies and individuals at the forefront of these changes and those contributing to the future direction of the industry.

The association urged automobile manufacturers, distributors, dealers and other stakeholders to participate actively in the awards process as preparations gather momentum for the December 3 grand finale.