Editorial
That UK Firm’s $9.6 bn Debt Claim
Penultimate Tuesday, three ministers in charge of Justice, Finance and Information, Abubakar Malami, Zainab Ahmed, and Lai Mohammed as well as the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, addressed a joint news conference where they confirmed that a probe panel comprising the Economic and Financial Crimes Commission (EFCC), National Intelligence Agency (NIA), and Inspector General of Police, has been set up to review the entire process leading to the award and failure of a 20-year gas supply deal allegedly sealed with an Irish firm – Process & Industrial Development Limited (P&ID) – which has resulted in a $9.6 billion (about N3.5 trillion) fine imposed on August 16, 2019 by a British Commercial Court presided over by Justice Christopher John Butcher, for allegedly defaulting to respect compensation ruling against the previous government in 2012.
The ministers said that government was seriously concerned about the whole circumstances that “smack of an attempt by some local and international collaborators to rip off Nigeria”, for a project that was never executed. In fact, both minister of finance and CBN governor said that there were no records in their books to show that P&ID, as a foreign investor, brought in any tools, equipment or funds for the purposes of establishing a gas processing plant in Cross River State between January, 2010 when the GSPA was executed and 2012, when the firm petitioned the government at the arbitration tribunals in the United States and United Kingdom seeking compensation for defaulting in keeping its own part of the bargain.
We may recall that a Memorandum of Understanding (MoU) was signed between the government and P&ID on July 22, 2009 while the Gas Supply Processing Agreement (GSPA) was executed by P&ID founder, Michael Quinn, and the then Petroleum Resources Minister, Dr Rilwanu Lukman, on January 11, 2010. But with the twist in the Umaru Yar’Adua administration leading to his death, and the emergence of Dr Goodluck Jonathan as acting president, the new government of necessity opted in June, 2010, to jettison P&ID and run the Adanga gas pipeline deal with Adax Petroleum, thereby triggering the logjam.
The Tide recalls that the firm had through its representatives, Andrew Stafford, Q.C. of Kobre & Kim claimed that it invested $40 million in the deal, but approached the arbitration tribunal in 2012 to seek compensation for government-induced failure of the contract. In the ruling, Justice Butcher granted P&ID’s right to seize 20 per cent assets of Nigeria’s foreign reserves worth £7.4 billion or $9.6 billion, which is 2.5 per cent of Nigeria’s GDP as punishment for failing to respect the decision of the tribunal on the botched deal.
Only last Thursday, the erstwhile justice minister under President Umaru Yar’Adua, Michael Aandoakaa, denied knowledge of such deal, and claimed that Rilwanu Lukman never submitted any memo on the alleged GSPA to the Federal Executive Council (FEC) for approval. The next day, P&ID published a veiled chronology of interactions between it and the Federal Government from May 3, 2015 through August, 2019, but failed to mention who played roles in its failure, why government dumped it for Adax Petroleum and why the government refused to pay the award since 2012.
It is curious that P&ID offered the Goodluck Jonathan administration to walk away with $850 million on May 3, 2015, and sustained that offer till November, 2015, an amount less than 10 per cent of the actual arbitration award of $9.46 billion.
We are disappointed that the government ignored provisions in its Production Sharing Contract (PSC) agreements with Adax Petroleum and ExxonMobil for the unitisation and monetisation of gas resources in Oil Mining Leases 123 and 67, and went ahead to enter into fresh GSPA with P&ID with no relationship with the IOCs, including its associates – Industrial Consultants International Limited (ICIL) and BVI Company.
We are further worried at the way P&ID took advantage of delay in the formation of a cabinet by President Muhammadu Buhari to obtain consequential awards in its favour, especially the Liability Award on July 17, 2015, and the debt recovery enforcement award on August 16, 2019. We are also concerned at the May 27, 2016 Arbitration Tribunal decision to apply the Procedural Order No 12, which moved jurisdiction of arbitration to London, and undercut the Federal High Court powers to set aside the awards. And we are jolted by the tribunal’s refusal to accept Curtis Mallet, Nigeria’s representative’s requests for time to enable the Federal Government sort things out, and attempts to blame the government and particularly Malami for not playing along.
This, indeed, is the single highest financial liability in Nigeria’s history, and poses devastating consequences for the economy and Nigerians today and in the future, which must not be allowed to stand. But come to think of it: how on earth could this have happened, if not for the connivance of some dubious and unpatriotic Nigerians, who are desperately fighting back attempts to end endemic corruption in the system?
We join the Federal Government and all well-meaning Nigerians to reject this attempt by P&ID and its co-conspirators to plunge Nigeria into endless slavery and poverty, by stopping Andrew Stafford from coming through with his threats ‘to satisfy the terms of the award as soon as possible’. We align with the government’s strategy to thoroughly investigate this investment fiasco and bring all those culpable to justice as quickly as possible. We also charge the government to deploy every diplomatic means available to ensure that P&ID and its proxies do not in any way interfere or seize any assets belonging to Nigeria anywhere in the world, as a ploy to enforce this bogus judgment debt.
This scandalous judgment debt points to a sad culture of negligence and lack of due process which manifested at every stage of the contract and arbitration. We, therefore, insist that the probe should begin from the Ministry of Justice and interrogate Chief Bayo Ojo (SAN) while retired and serving officials of the Ministry of Petroleum Resources should explain to Nigerians why they should vet such opaque contract agreement without aligning all grey but complex areas with extant industry laws in the country.
This tragedy effectively amplifies the conventional lackluster attitude of governments in Nigeria towards debt management, either from domestic creditors or offshore sources. Now that the $9.6 billion scandal has been blown open, with more threats emerging from other failed deals, it is imperative for government to file a stay-of-execution appeal, and engage in efforts to defend the country’s hard-earned $9.6 billion foreign reserve. We also expect an immediate audit of such cases pending at international arbitration courts to ensure they are handled with seriousness and settled in such a manner that they do not threaten Nigeria’s foreign reserves. This is our stand!
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WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
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