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As the $9.6 billion arbitration award and United Kingdom Court enforcement judgment against Nigeria in favour of an Irish firm, Process & Industrial Developments Limited (P&ID), continue to generate controversy, presidency hawks are urging the federal government to take stern actions to protect the country’s assets threatened by the hefty award, THISDAY learnt last night.
According to impeccable presidency sources, the actions being proposed include the seizure of Bonga Deep Water Oil Field in which a British company, Shell, has substantial interest as well as other British and Irish businesses.
THISDAY learnt that those businesses would be targeted if the arbitral award is levied against Nigeria’s assets in the United Kingdom.
The paper also found that a status report by the Ministry of Justice written for the federal government revealed how efforts by both President Muhammadu Buhari and Vice-President Yemi Osinbajo to negotiate the award with the company failed.
The report said following presidential intervention after the award, P&ID agreed with a delegation of the federal government to accept $600m as settlement but later reneged on the deal.
Presidential sources told THISDAY last night that the hardliners are pushing for a punitive response because they felt that the failed gas to power project signed in 2010 was a fraudulent deal and ought not to stand.
They drew strength from the interim report of the Economic and Financial Crimes Commission (EFCC) on an investigation it launched on the bad deal in 2015, which found that the contract was neither authorised by President Umaru Yar’Adua nor approved by the Federal Executive Council (FEC) that have the power to seal such a deal.
Besides, the EFCC found that there was collusion between some officials of the Ministry of Petroleum Resources and P&ID to defraud the country.
“Given this background, senior officials at the presidency are shocked that the British Commercial Court could allow its high position to be used to obtain a judgment that could undermine the economy of a developing country,” a source said.
He said for the hardliners, because of the quantum of the award and its likely effect on the country’s foreign reserve, the matter had become a national security issue, which the federal government must take concrete steps to protect.
“They feel that if $9.6bn worth of assets of Nigeria is seized, it has the real potential of adversely affecting the country’s economy and could lead to so much social dislocation that could force many young Nigerians abroad,” another source said, adding: “That is a prospective they feel the federal government must prevent by all means.”
Consequently, he said, the hawks argued that the federal government must take actions that would deter the British government from encouraging the attachment of Nigerian assets by demonstrating its willingness to retaliate any unfriendly action, which could include targeting British and other business interests in the country for takeover.
The presidency, the source said, had consequently directed the Central Bank of Nigeria (CBN) to liaise with the Attorney-General of the Federation (AGF) and Minister of Justice to take all measures to protect Nigeria’s interests, including renegotiation of the award and appeal of the enforcement judgment.
If these fail, said the source, then Bonga and other British as well as Irish business interests in the country that are commensurate to any Nigerian asset attached would be seized. (Thisday)
