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

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4 years ago

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•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.

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Transport Logistics Key to Nigeria’s Growth, Says TCAN, Unveils 2026 Summit

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June 5, 2026

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Transport Logistics Key to Nigeria’s Growth, Says TCAN, Unveils 2026 Summit

 

The Transportation Correspondents Association of Nigeria (TCAN) has announced plans to honour outstanding contributors to the growth of Nigeria’s transport sector at its 2026 Annual Transport Summit scheduled for September 24, 2026.

The summit, themed “Unlocking Economic Growth Through Transportation Logistics,” will be held at the Radisson Hotel & Suites, Lagos, and is expected to bring together major stakeholders across the transportation value chain, including aviation, maritime, rail, road transport and logistics services, as well as policymakers, regulators, financial institutions, development partners and industry leaders.

In a statement, TCAN disclosed that the event would feature the presentation of Champions of Transport Industry Development (CoTID) awards to government agencies, state governments and private-sector operators that have made significant contributions to advancing Nigeria’s transportation ecosystem.

According to the association, the awards are designed to recognise organisations and institutions whose efforts have helped improve transport infrastructure, logistics efficiency and service delivery across the country.

TCAN Chairman, Tola Adenubi, said transportation logistics remains a critical driver of economic development, stressing that individuals, agencies and organisations making meaningful contributions to the sector deserve recognition.

“From cargo handling at airports and seaports to freight movement on inland waterways and last-mile delivery systems, the efficiency of Nigeria’s logistics network has a direct impact on the competitiveness and growth of the national economy,” Adenubi said.

He noted that the summit would provide a platform for stakeholders to explore innovative approaches to improving the sector through digital transformation, infrastructure financing, public-private partnerships and policy reforms.

Also speaking, Chairman of the 2026 Summit Planning Committee, Suleiman Idris, said the gathering would feature keynote addresses, panel discussions and interactive sessions aimed at evaluating the current state of Nigeria’s transportation logistics framework.

He explained that participants would identify key challenges limiting efficient cargo and passenger movement, assess the role of multimodal transport integration in economic expansion, and examine emerging investment opportunities within the logistics and supply chain industry.

According to Idris, experts and industry leaders at the summit will also develop practical policy recommendations aimed at enhancing operational efficiency and strengthening Nigeria’s competitiveness in the global logistics market.

Over the years, the TCAN Annual Transport Summit has evolved into one of the industry’s leading platforms for engagement between government agencies, transport operators and other stakeholders.

The forum has continued to facilitate policy dialogue, promote accountability and support the development of a more efficient and sustainable transportation sector in Nigeria.

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Transport Expert Segun Musa to Chair 12th Nigeria Transport Lecture

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June 4, 2026

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Transport Expert Segun Musa to Chair 12th Nigeria Transport Lecture

 

Renowned transport and logistics expert, Dr. Segun Musa, has been named chairman of the 12th edition of the Nigeria Transport Lecture scheduled to hold in Lagos on June 18, 2026.

Organised by Transport Day newspaper, this year’s lecture will focus on the theme, “Multi-modal Transportation Safety in Nigeria: Prospects, Challenges and Contribution to National Growth.”

Musa, Chairman and Managing Director of Widescope Logistics International, is widely respected for his extensive experience in transportation, logistics and supply chain management spanning several decades.

The event will also feature a keynote presentation by the Registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Mr. Kingsley Onyekachi Igwe.

Scheduled to take place at the Radisson Blu Hotel, Ikeja, the lecture is expected to attract key stakeholders from both the public and private sectors to deliberate on critical safety issues, policy reforms and strategies for strengthening Nigeria’s multi-modal transportation network.

Other notable speakers include the National President of the Chartered Institute of Logistics and Transportation (CILT), Dr. Boboye Oyeyemi, and the Dean of the School of Transportation and Logistics, Lagos State University (LASU), Prof. Ogochukwu Ugboma.

Over the years, the Nigeria Transport Lecture has evolved into a leading industry platform, bringing together policymakers, regulators, academics and business leaders to discuss solutions to challenges confronting the transport and logistics sector.

Previous editions have featured distinguished personalities such as former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside; former Federal Permanent Secretary, Dr. Anthonia Ekpa; and Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, among others.

Ahead of the gathering, the Editor of Transport Day Media, Mr. Frank Kintum, said the annual lecture has become an important platform for industry stakeholders to examine emerging issues and develop practical solutions for the transport sector.

He noted that this year’s focus on multi-modal transportation safety was informed by the increasing integration of road, rail, maritime and air transport systems, stressing that safety must remain at the centre of efforts to modernise the sector.

“As governments continue to invest in transport infrastructure and interconnectivity, safety cannot be treated as an afterthought. The success and sustainability of these investments depend largely on how effectively safety concerns are addressed across all modes of transport,” Kintum stated.

He further explained that the lecture forms part of Transport Day Media’s broader mission to encourage policy dialogue, knowledge sharing and industry collaboration aimed at building a safer, more efficient and globally competitive transport and logistics ecosystem in Nigeria and the wider African region.

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NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls

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19 hours ago

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June 4, 2026

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Nigerian Electricity Regulatory Commission (NERC)

NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls

 

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls between February and March 2026.

The regulator announced the measure in a public notice issued on Thursday, citing widespread generation constraints that prevented electricity Distribution Companies (DisCos) from meeting the minimum service levels promised to some Band A customers during the period.

According to NERC, the disruptions were largely triggered by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors it said were beyond the control of the DisCos.

Under the directive, Band A feeders that maintained an average daily supply of between 18 and 20 hours will continue to receive compensation under the existing framework contained in Addendum No. NERC/2024/003, covering both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

For feeders that recorded less than 18 hours of daily electricity supply, NERC ruled that they would not be downgraded during the affected period.

Instead, eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their feeders, while MD customers will receive credits equal to 20 per cent of the average energy billed per MD customer in February 2026.

The commission said prepaid customers would receive the compensation through energy token credits, while postpaid customers would benefit through adjustments to their electricity bills.

NERC directed all DisCos to complete compensation for February 2026 by May 31, 2026, and for March 2026 no later than June 30, 2026.

The regulator also barred DisCos from using the compensation to offset outstanding customer debts and instructed them to clearly communicate the value and period of the credits granted to beneficiaries.

Reaffirming its commitment to consumer protection, NERC said it would continue to monitor implementation of the directive and verify compliance across the industry to ensure that all eligible customers receive the compensation due to them.

The commission added that the intervention is aimed at safeguarding consumer interests while supporting the stability and long-term sustainability of the Nigerian Electricity Supply Industry.

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