Business
Nigeria’s bid to nail P&ID in $9bn case suffers setback
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 increases petrol price from N899 to N955/litre
Dangote refinery increases petrol price from N899 to N955/litre
Dangote Petroleum Refinery has announced an increase in the cost of lifting its petrol from N899 per litre to N955.
This also affirmed the projection of oil marketers and Petroleum and Natural Gas Senior Staff Association of Nigeria that Nigerians should gear up for an imminent hike in the pump price of fuel.
This is coming following the latest rise in the cost of crude oil in the international market.
Dangote refinery in a notice on Friday titled, “Communication on PMS Price Review”, said the new pricing structure of N955 per litre was for customers purchasing between two million and 4.99 million litres.
Bulk buyers of five million litres or more are to pay N950 per litre, according to the notice.
This price adjustment indicates a 6.17% increase, or N55.5 per litre, compared to the discounted rate of N899.50 per litre offered during December 2024’s holiday period.
The refinery added that the new rates took effect from 5:30pm Friday impacting all unsold stock balances and pending orders.
Dangote refinery informed its customers of the price revision, attributing the change to rising global oil prices.
“Kindly be advised that effective from 5:30 PM today, an upward adjustment has been implemented on the gantry price of Premium Motor Spirit.
“Please note that all stock balances yet to be lifted as at the above-stated time are to be repriced at the new reviewed prices.
“We shall communicate with customers on their revised volumes based on the reviewed prices, in due course,” it read in part.
The increase is due to the rise in the price of Brent, the global benchmark for crude.
Brent crude rose to $81.84 per barrel—the highest level in 2025.
Business
Petrol price hike imminent over biting exchange rate – PENGASSAN
Petrol price hike imminent over biting exchange rate – PENGASSAN
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has warned that the price of Premium Motor Spirit (PMS), commonly known as petrol, could increase if the upward trend in global crude oil prices persists.
Speaking during PENGASSAN’s National Executive Council Meeting in Lagos on Thursday, Osifo highlighted the correlation between rising crude oil costs and Nigeria’s foreign exchange challenges, cautioning that the situation may lead to higher fuel prices.
“The crude price rose to $80 per barrel today. Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated.
He attributed the nationwide high fuel prices to the volatile exchange rate, even with the gradual resumption of operations at domestic refineries. However, he noted that these facilities were not yet operating at full capacity.
Addressing misconceptions about refining, Osifo explained that producing high-quality PMS involves extensive blending and processing. “The old Port Harcourt refinery is functional, and there is significant progress at the Kaduna and Port Harcourt refineries. Refineries globally engage in blending operations; it is a normal part of the process,” he said.
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Osifo linked the rising cost of petrol to the weakened naira, explaining that a stronger exchange rate could stabilize PMS prices.
“The price of PMS is directly linked to our weak naira. If the exchange rate improves to below N1,000 to a dollar, PMS could sell for N500–N600 per litre,” he added.
Drawing comparisons with countries like Venezuela and Zimbabwe, Osifo stressed the importance of currency management in the oil and gas sector, which relies heavily on U.S. dollars for equipment, operations, and expatriate salaries.
On local refining, he refuted claims that it would automatically lead to significantly lower prices, emphasizing the importance of maintaining cost margins. “Producing locally does not mean selling below cost. Even farmers calculate their production costs before adding margins,” he explained.
In a separate discussion, Osifo criticized Nigeria’s proposed 2025 budget of ₦49 trillion (approximately $30 billion), describing it as inadequate for a country with a population exceeding 230 million.
“The budget of $30 billion is abysmally low for a country like Nigeria, especially when you compare it with nations like South Africa, which has a population of about 60 million but operates on a budget of over $120 billion,” he stated.
He urged the Nigerian government to explore its vast natural and mineral resources to increase revenue and reduce reliance on borrowing.
Petrol price hike imminent over biting exchange rate – PENGASSAN
Business
Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA
Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the country’s Compressed Natural Gas (CNG) conversion capacity increased by over 2,500 per cent in 2024.
Mr Farouk Ahmed, Authority Chief Executive, NMDPRA, said this on Thursday in Abuja at the inaugural Petroleum Industry Stakeholders’ Forum, organised by the Ministry of Petroleum Resources.
Ahmed said that NMDPRA supported the Presidential Compressed Natural Gas Initiative (PCNGI) by stimulating 186 new conversion centers which triggered the county’s conversion capacity.
“The NMDPRA will continue to collaborate with the PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions, while collaborating with states to develop Nigeria Gas Vehicles (NGVs) in other areas.
“The development of CNG as a viable alternative to Petrol has been incentivised.
“These conversions alongside new buys have raised the Nigerian Gas Vehicles population to an estimated 30,000 to 50,000 vehicles and trucks, and it continues to grow daily.
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“With over 400 million dollars attracted for investment in 86 and 65 new daughters and mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56,” he said.
Ahmed said that the collaboration between PCNGI, NMDPRA and Standards Organisation of Nigeria (SON) led to the development of standards and the NGV Monitoring System expected to be inaugurated this year.
“The NMDPRA also collaborates with the SON, the National Automotive Design and Development Council (NADDC) and the National Institute of Transportation Technology (NITT) in ensuring that our mobility CNG growth is achieved in a safe and sustainable manner,” he said.
The NMDPRA boss, however, listed some challenges facing the initiative to include establishment and operation of petroleum handling facilities without proper licensing, permits and authorisations.
He listed other challenges to include poor collaborations for Open/ third party access to facilities and lack of cooperation of some operators for an effective regulatory oversight, in line with the Petroleum Industry Act (PIA) provisions.
“We implore the industry to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection and community participation.
“As we progress into 2025, the NMDPRA will continue to consolidate on its successes for enhanced regulatory oversight.
“This will include the upgrade of our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation and sustainability in the industry,” Ahmed said.
Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA
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