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Failed Gas Deal: Trial Begins in UK Firm’s Suit Against Nigeria Over Unpaid $11 Billion

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President Muhammadu Buhari - Investors King

Trial into the protracted lawsuit between a British Virgin Islands-registered firm, Process & Industrial Development Ltd. (P&ID) and the Federal Republic of Nigeria over the failure of the latter to pay the firm the whooping sum of $11 billion will commence this week before a United Kingdom High Court.

Investors King gathered that the case emanated from a failed gas deal between the firm and the Nigerian government that dated 2010.

Available facts revealed that Nigeria had in 2010 entered into an agreement with the firm to provide free processed gas for P&ID within a period of 20 years in exchange for an oil refinery facility that P&ID would build for the country.

The firm is said to have bided for the gas supply in order to generate electricity with it and also sell it’s remaining to interested buyers.

P&ID had claimed it failed to build the planned refinery because the Nigerian government failed to tap its natural gas and deliver to it as allegedly agreed during their contract signing.

Explaining why the country defaulted in honouring the agreement, the incumbent Nigeria’s government had accused the P&ID of bribing previous administration officials to secure the gas contract and colluded with former government lawyers and officials to put up what it described as a “sham defense” when the matter became a subject of litigation.

Checks by Investors King revealed that the deal was made during the administration of former President Goodluck Jonathan of the Peoples Democratic Party (PDP) in 2010.

Its implementation was said to have got delayed till 2015 when Jonathan lost reelection to incumbent President Muhammadu Buhari of the All Progressives Congress (APC).

Following the change of power, the deal was stalled as the incumbent administration alleged that the deal came about through bribes to former government officials, and that the award should be revoked.

Buhari’s administration had directed the law enforcement agencies to investigate allegations of bribery surrounding the 2010 gas contract and insisted that bank records indicated that four government officials or their family members received bribes from P&ID before the contract was signed, and that one of them has admitted to overlooking “obvious deficiencies” in the company’s proposal.

Nigeria’s anti-graft agency has also charged the lawyer that represented the state during the arbitration for allegedly bribing public officials involved in the proceedings.

Not pleased with Nigerian government’s allegations, P&ID initiated arbitration in 2012 and claimed that attempts to resolve the issue privately had failed.

Meanwhile, in 2017, a closed-door arbitration court in the UK ordered Nigeria to pay $6.6 billion to the firm to compensate for lost profits over the failed facility project. The $6.6 billion awarded against Nigeria is said to have grown to over $11 billion with interest.

Ever since, P&ID, had been pressuring Nigeria to make the payment. In 2019, the stakes rose again when a UK judge issued an order enforcing the award.

P&ID had denied all allegations and described the Nigerian government’s claims of fraud as an attempt to dodge liability.

Meanwhile, as the case resumes this week in London, Nigerian government is expected to present its case and convince the court to quash the arbitration ruling.

UK high court judge, Ross Cranston had said in a 2020 ruling that there was a strong case to be made that for it to be convinced that the gas processing contract was procured by bribes paid to insiders as part of a larger scheme to defraud the country.

It was reported that Nigeria’s economy would suffer a deeper crisis if the country loses in London as P&ID has said it wold demand legal approval to confiscate Nigeria’s overseas assets, thus making it more expensive for Nigeria to raise money in international capital markets.

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Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Netanyahu

Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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