Nigeria Loses Compensation Bid over Glencore Bribery – Newstrends
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Nigeria Loses Compensation Bid over Glencore Bribery

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2 years ago

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Southwark Crown Court

Nigeria’s bid to claim compensation from a British subsidiary of mining and trading group Glencore  over bribes paid to officials at Nigeria’s state oil company has been denied by a London court.

Lawyers representing the country told London’s Southwark Crown Court that Nigerian officials should be permitted to address the court on November 2 and 3, when Glencore Energy is to be sentenced having pleaded guilty to seven counts of bribery in connection with oil operations in five African countries including Nigeria.

But Judge Peter Fraser ruled that Nigeria does not have the right to be heard, as only the prosecution, in this case the UK Serious Fraud Office (SFO), and the defence can make arguments at a sentencing hearing, Reuters reported.

Nigeria said in written arguments it is “an identifiable victim of Glencore’s admitted criminal activity”, as two of the charges to which Glencore Energy has pleaded guilty relate to payments made to Nigerian National Petroleum Company (NNPC) officials.
The SFO had argued that individuals or entities who are not involved in a criminal case do not have the right to address the court at sentencing, “even if they consider themselves to be the victims of crime”.

Alexandra Healy, representing the SFO, also said in court filings that “there is no link between the bribes paid and any loss suffered”.
Nigeria’s lawyers said Glencore is not prepared to engage on the issue of compensation, but Clare Montgomery, representing Glencore Energy, told the court that her client rejected the “attack on the corporate morals of Glencore”.

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She also said the contention that Glencore is “hiding behind the SFO to avoid paying anything to [Nigeria] is simply untrue”.
Sam Tate, a partner at law firm RPC which represented Nigeria, told reporters after the hearing that the ruling demonstrated the “very urgent need to reform the rules on compensating foreign countries where we have foreign bribery offences”.
Pressure group Spotlight on Corruption said the court’s decision is “a powerful illustration of why the current compensation framework simply isn’t fit for purpose”.

Glencore International and Glencore Ltd., both part of a Switzerland-based multi-national commodity trading and mining firm, were earlier named in massive bribery of officials of Nigeria’s state-owned oil company, pleaded guilty and agreed to pay over $1.1 billion fine over their involvement in a corruption scheme.
A former United Kingdom-based trader for Glencore Plc, Anthony Stimler,had confessed to bribing officials in Nigeria in exchange for favourable contracts from the NNPC.

Mr Stimler, acting through subsidiaries of Glencore, conspired with others to make millions of U.S. dollars in corrupt bribe payments to officials in Nigeria. The former trader pleaded guilty over what prosecutors in the United States described as his role in a scheme to bribe and he admitted to conspiring to violate the Foreign Corrupt Practices Act and commit money laundering at a hearing in Manhattan federal court conducted by video.
Prosecutors said millions of dollars in bribes were paid to officials in Nigeria, in exchange for NNPC awarding oil contracts and providing “more lucrative grades of oil on more favourable delivery terms.

The US’ Department of Justice said that Glencore had agreed to a criminal fine of more than $428 million and to criminal forfeiture and disgorgement of more than $272 million. Glencore had also agreed to retain an independent compliance monitor for three years.
Between 2007 and 2018, Glencore and its subsidiaries caused approximately $79.6 million in payments to be made to intermediary companies in order to secure improper advantages to obtain and retain business with state-owned and state-controlled entities in the West African countries of Nigeria, Cameroon, Ivory Coast, and Equatorial Guinea.

“Glencore and its subsidiaries engaged two intermediaries to pursue business opportunities and other improper business advantages, including the award of crude oil contracts, while knowing that the intermediaries would make bribe payments to Nigerian government officials to obtain such business.
“In Nigeria alone, Glencore and its subsidiaries paid more than $52 million to the intermediaries, intending that those funds be used, at least in part, to pay bribes to Nigerian officials,” the DOJ stated. The Nigerian government had thereafter asked for compensation.

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Just in: Factional Zamfara assembly leaders want governor to represent budget

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3 hours ago

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April 24, 2025

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Just in: Factional Zamfara assembly leaders want governor to represent budget

A factional House of Assembly has emerged in Zamfara state with members demanding the re-presentation of the 2025 Appropriation Bill by Governor Dauda Lawal.

The group, made up of nine lawmakers who were suspended in February 2024 over allegations of misconduct, conspiracy, and illegal sitting, convened in Gusau, the state capital, and declared the formation of a parallel legislative body.

At the session, the lawmakers elected Hon. Bashir Aliyu Gummi as Speaker of the factional assembly.

During the sitting, the faction addressed several issues, including the state’s deteriorating security situation, economic challenges, and the recent reports of mass sackings within the state civil service allegedly carried out by the Lawal administration.

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The group further demanded that Governor Lawal re-present the 2025 budget, arguing that the process followed in its initial passage was flawed. The governor had originally submitted the N545 billion Appropriation Bill to the widely-known State House of Assembly led by Speaker Bilyaminu Ismail Moriki in December 2024. The bill was passed and signed into law that same month.

Present at Wednesday’s session were Hon. Aliyu Ango Kagara (Talata Mafara South), Ibrahim Tudu Tukur (Bakura), Nasiru Abdullahi Maru (Maru North), and Faruk Musa Dosara (Maradun 1). Others included Bashar Aliyu (Gummi 1), Bashir Abubakar Masama (Bukkuyum North), Amiru Ahmed (Tsafe West), Basiru Bello (Bungudu West), and Mukhtaru Nasiru (Kaura Namoda North).

 

Just in: Factional Zamfara assembly leaders want governor to represent budget

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NLC to IMF: Your reforms inflict hunger, poverty on masses

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3 hours ago

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April 24, 2025

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President of the NLC, Comrade Joseph Ajaero

NLC to IMF: Your reforms inflict hunger, poverty on masses

The Nigeria Labour Congress (NLC) has taken a swipe at the International Monetary Fund (IMF) over its policy proposals to Nigeria and other African nations on how to rejuvenate their ailing economies.

Indeed, the NLC pointedly told the IMF that its conditionalities for giving loans to Nigeria and others were inflict pains of hunger and poverty on the masses.

The NLC President, Joe Ajaero, stated this when he received the IMF team team comprising the its Resident Representative for Nigeria, Christian H. Ebeke, and, Axel Schimmelpfennig from Washington, DC.

The purpose of the visit, it was learnt, was to assess how Nigerian workers and the general populace are being affected by the current socioeconomic environment and the hardship resulting from government policies.

The IMF delegation, led by Schimmelpfennig also sought insights from the NLC regarding the state of the labour market in Nigeria. According to them, the information gathered would contribute to the IMF’s annual country report for Nigeria.

Sources at the meeting disclosed that the IMF team acknowledged that the Nigerian government has been grappling with fiscal challenges since assuming office.

They emphasized that the IMF’s recommendations are purely advisory and not mandatory, based on the prevailing realities in each country.

The delegation expressed concern that, often, governments do not follow the IMF’s recommendations to the letter, instead adapting them to align with political objectives. In effect, the IMF attempted to distance itself from the adverse consequences of some recent economic reforms in Nigeria.

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Nevertheless, the IMF team requested continued engagement with the NLC going forward.

Ajaero made it clear that governance should prioritize citizens’ welfare over profit-making.

He criticized the austerity measures often recommended by the IMF, noting that they have worsened living conditions for Nigerians.

It was gathered that Ajaero particularly highlighted the removal of fuel subsidies, which he said has led to increased suffering, hunger, and poverty among workers and the general population.

The NLC president argued that there was no real subsidy to remove in the first place, as the government was already profiting from crude oil sales.

He described the “subsidy removal” as merely a justification for increasing fuel prices.

He equally questioned the use of the revenue purportedly saved from the subsidy removal, especially since the government continues to borrow heavily.

“He pointed out that the cost of essential services—such as education and transportation—has tripled, leading to widespread hardship.

He condemned the growing disparity between the worsening living conditions of citizens and the increasing wealth of government officials.”

Ajaero emphasized that genuine reforms should improve the welfare of the people, not enrich those in power.

He also criticized the government for not consulting key stakeholders before implementing the subsidy removal policy.

This exclusion, he said, had exacerbated the country’s economic challenges.

He noted that inclusive dialogue could have produced better strategies and outcomes, lamenting that the government has isolated itself from valuable advice.”

On the national minimum wage, the NLC president complained that the N70,000 wage is not being implemented sincerely across all levels of government. Instead, the government has continued to impose additional taxes, worsening the financial burden on citizens.

Ajaero urged the IMF to advise the government to ease this pressure and allow citizens to breathe.

He warned that rising poverty levels could lead to social unrest if left unaddressed.

NLC to IMF: Your reforms inflict hunger, poverty on masses

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‘Enough is enough’, Tinubu directs security chiefs to stop violent attacks

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12 hours ago

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April 23, 2025

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‘Enough is enough’, Tinubu directs security chiefs to stop violent attacks

 

President Bola Tinubu has ordered security operatives to end forthwith the violent attacks in some parts of the country, especially in Plateau, Borno, and Benue states.
He gave the directive during a meeting with security chiefs at the State House on Wednesday.
The meeting was attended by Nuhu Ribadu, the national security adviser (NSA); Mohammed Mohammed, director-general of the National Intelligence Agency (NIA); Emmanuel Undianeye, chief of defence intelligence; Oluwatosin Ajayi, director-general (DG) of the Department of State Services (DSS); and Femi Gbajabiamila, chief of staff (CoS) to the President.
Speaking with journalists after the meeting, Ribadu said Tinubu declared that “enough is enough” on the resurgence of violence in some parts of the country.
The NSA said the president directed security chiefs to work with the political authorities in states and at the grassroots level to find a lasting solution to the insecurity.
He said the security chiefs had acted on Tinubu’s previous instructions by meeting with political leaders in the affected communities and states.
The NSA said the meeting offered the security chiefs the opportunity to fully brief the president about the current security situation of the country.
“This time, we were able to sit with him for hours and give a proper briefing. We also took new instructions from him,” he said.
“Insecurity is not only a government problem.
“It also involves the subnational units — the communities, local governments, and especially the governors. The president directed that we work more closely with them.
“Some of these problems are community-related. While not entirely so, that element plays a significant role.
“Mr. President is working hard to ensure that Nigeria enjoys peace and stability. We are not relenting. We will not stop until we get the results he demands.”
On the resurgence of violent attacks in Borno, Ribadu said the terrorists were planting explosives during the period of relative peace in the state.
“This enemy does not give up easily. When there’s peace for a long time, they try to shock the public with an isolated incident,” he said.
The NSA said the security situation in the country is not yet at 100 percent, while noting that there is “significant improvement”.
Since the beginning of the month, many have been killed in some communities in Plateau State.
Benue State has also recorded violent attacks as over 50 people were killed in Ukum and Logo LGAs on April 18.

 

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