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Business News

FG bows to pressure, ready to negotiate with P&ID firm over $9 billion U.K judgement 

The Federal Government of Nigeria has made an unexpected U-turn over the $9 billion (N3.5 trillion) judgment involving Nigeria and British Firm – Process and Industrial Developments Ltd (P&ID). 

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Recession, 2020 revised budget, spending inefficiencies, and a looming debt hole  , President Muhammadu Buhari, loans, Oil price, FG, Solar vehicles, P&ID firm, Nigeria's GDP, Debt Servicing: Nigeria pays $1.12 billion to World Bank, others in 10-month , How the latest Fitch report affects you in 2020 , Nigeria’s credit rating faces downgrade by Fitch, Nigeria’s fiscal crisis looms, oil hits $32, S&P downgrades Nigeria to junk rating, as India cuts interest rates

The Federal Government of Nigeria has made an unexpected U-turn over the $9 billion (N3.5 trillion) judgment involving Nigeria and a British Firm – Process and Industrial Developments Ltd (P&ID). 

The sudden move by the federal government to negotiate with the firm was disclosed by the Minister of Information and Culture, Lai Mohammed while speaking on NTA breakfast programme on Thursday.  

The details: According to Muhammed, the government knows the consequences of such payment on the economy, and is ready to negotiate with P&ID to find a way out.

The statement credited to the minister came against the backdrop of the recent press release by the Federal Government, where the same minister for information threatened that the reports of Nigerian assets take over held no water.  

[READ MORE: Buhari orders probe of past administrations over $9 billion U.K judgment] 

However, the government appears to have bowed to pressure, resolving to negotiate with the firm as there were concerns over the judgment.   

“We are leaving no stone unturned to resolve this matter. We are ready to sit down with them and negotiate what is reasonable to all parties. You don’t inflict this kind of injury on a country and its people. 

First eleven would be engaged to take over the case. We are making wide consultations on the matter. Nigerians can rest assured that everything is being done to make sure that the country is not short-changed in this case,” the minister said. 

Reasons for negotiation: The minister disclosed the reason behind the decision of the government to negotiate. According to him, the firm in question has the resources to hire the best PR agencies in the world to turn the case on Nigeria.  

“The contract itself was not justifiable and I know that the EFCC, Ministry of Justice and other bodies investigating the contract will come up with facts on how the whole thing was done. The government will not sleep until this matter is resolved in a manner that will not injure the interest of Nigeria.  

“The P&ID has the resources to hire the best PR agencies in the world to spread this falsehood. And without internal collaborators, external conspirators will not succeed. We will find those involved in this scam, either inside or outside government. The Ministry of Justice has enough experts to know that this would not be in the interest of our country. On the surface, it was a scam ab initio and the actors knew where they were going,” Muhammed disclosed.  

The minister further reiterated that the government would do everything within its power to ensure that those involved are exposed and prosecuted. 

Recent Development: As earlier published by Nairametrics in recent articles, P&ID, an Irish Firm, was awarded $6.6 billion in an arbitration decision over a failed project to build a gas processing plant in the Southern Nigerian city of Calabar. With the accumulated interest payments, the sum now tops $9 billion, which amounts to 20% of Nigeria’s foreign reserves. 

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  • The firm had initiated moves to identify the Nigerian assets that could be seized and it might include the country’s oil cargoes. 
  • Meanwhile, the latest move by Nigeria includes the order given by President Muhammadu Buhari for the immediate probe of past administrations over the $9 billion judgment. The investigation may cover both the former President Good luck Jonathan’s administration and his predecessor – Umaru Musa Yar’Adua.  
  • Commenting on the development at a press briefing, the Minister of Finance, stated that the judgment cannot stand as it constitutes about N3.5 trillion. 

The bottom line: Experts have disclosed that P&ID can target Nigeria’s real estate, bank accounts or any kind of moveable wealth, but it has to prove that the property is unrelated to Nigeria’s operations as a sovereign state. 

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The move to negotiate suggests the presidency may be under some sort of pressure and concerns have been raised that the possibility of seizing Nigerian assets might cost fortunes if negotiations are not initiated.  

In the meantime, the firm may now likely enter into a negotiation with the Nigerian government, as it had earlier warned that instead of Nigeria to enter into negotiation, the government resolved into sham media campaign over the case.  

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 [READ ALSO: Buhari’s CBN policies may drag the Nigerian economy into crisis – Fitch]

 

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Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

1 Comment

1 Comment

  1. Sopelola Olusegun

    September 2, 2019 at 12:42 pm

    Good handiwork

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Coronavirus

COVID-19 Update in Nigeria

On the 25th of February 2021, 634 new confirmed cases and 6 deaths were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 154,476 confirmed cases.

On the 25th of February 2021, 634 new confirmed cases and 6 deaths were recorded in Nigeria.

To date, 154,476 cases have been confirmed, 131,699 cases have been discharged and 1,891 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 1.49 million tests have been carried out as of February 25th, 2021 compared to 1.44 million tests a day earlier.

COVID-19 Case Updates- 25th February 2021,

  • Total Number of Cases – 154,476
  • Total Number Discharged – 131,722
  • Total Deaths – 1,891
  • Total Tests Carried out – 1,489,103

According to the NCDC, the 634 new cases are reported from 22 states- Lagos (259), Osun (45), Edo(38), Ogun (35), FCT (33), Anambra (26), Imo (24), Ondo (24), Akwa Ibom (20), Plateau (20), Abia (19), Kaduna (19), Ebonyi (17), Borno (10), Rivers (10), Kano (9), Delta (8), Kebbi (7), Nasarawa (4) Oyo (3), Enugu (2) and Ekiti (2).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 55,122, followed by Abuja (19,115), Plateau (8,854), Kaduna (8,422),  Oyo (6,708), Rivers (6,398), Edo (4,491), Ogun (4,277), Kano (3,716), Ondo (2,944), Kwara (2,875), Delta (2,539), Osun (2,326), Nasarawa (2,208), Gombe (2,031), Katsina (2,029), Enugu (1,998), Ebonyi (1,839), Anambra (1,615), and Abia (1,487).

Imo State has recorded 1,440 cases, Akwa Ibom (1,439), Borno (1,247), Bauchi (1,221), Benue (1,188), Niger (912), Ekiti (797), Sokoto (768), Bayelsa (767), Adamawa (762), Taraba (712), Jigawa (496), Kebbi (358), Yobe (268), Cross River (267), Zamfara (219), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.

Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.

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On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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Corporate Press Releases

NIFIAN elects JAIZ Bank MD, Hassan Usman as first President

…Inaugurates pioneer EXCO members.

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The Non-Interest Financial Institutions Association of Nigeria (NIFIAN), yesterday in Abuja elected the Managing Director of Jaiz Bank Plc. Hassan Usman as its pioneer President.

Usman was inaugurated alongside other six EXCO members to steer the affairs of the umbrella body of all corporate organisations offering non-interest financial and related services in the country for a first term of 2 years.

Those elected includes Hajara Adeola, Managing Director/CEO, Lotus Capital Limited as Vice-President; Norfadelizan Abdulrahman, Managing Director/CEO of TAJBank Limited as Treasurer; and Fatai Ola Bakare, an astute in-house legal counsel and Islamic Finance expert of SunTrust Bank Nigeria Limited as the Secretary-General.

Other EXCO members inaugurated yesterday include Thaibat Adeniran, Managing Director/CEO, Cornerstone Takaful Nigeria Limited; Aminu Tukur, Managing Director/CEO, Noor Takaful Limited and Dr. Basheer Oshodi, CEO, TrustBank Arthur Limited.

In his opening address, Babayo Saidu, Chairman of NIFIAN’s Board of Trustees said the Association was registered on 28th August 2020, and duly incorporated at the Corporate Affairs Commission under Part C of the Companies and Allied Matters Act.

Parts of the objectives of NIFIAN is to promote common interest of member-organisations towards developing the non-interest financial services industry in Nigeria, creating an enabling regulatory environment through advocacy as well as deepening financial inclusion through market engagements and financial literacy. In addition, the Association aims to improve market resilience by fostering collaboration across the industry, promoting policies and programmes on Financial Inclusion, and sensitization of the populace for the economic development of the country through non-interest financial services offering.

The Executive Council is expected to steer the affairs of the Association towards the realisation of its objectives for the advancement of financial inclusion through non-interest finance in Nigeria.

In his inaugural address, Hassan Usman said the journey started more than a decade ago with Nigeria Islamic Finance Working Group, a multi-institutional platform under the auspice of EFInA (Enhancing Financial Innovation and Access.)

Usman said: “As today marks a new chapter in our pursuit, I would like to reiterate the fact that we are not there yet. This course is a journey and not a destination. While the overarching objective remains constant, the detailed operational and strategic initiatives of the Association shall continue to evolve to meet the requirements of the day.

“To this end, I pledge that over the course of my tenure, I will work with my colleagues in the Council to push some prominent initiative including promotion of sound Islamic banking and financial system and practise in Nigeria; growth and development of requisite market infrastructures such as an efficient non-interest inter-bank system.

“Pursuit of harmony in Shariah pronouncements (fatwas); represent the interest of members locally and internationally; provide advice and assistance to members pertinent to the development of their institution and deepen public awareness. I look forward to working with members to make Nigeria the Islamic Finance Hub of Africa.”

In addition, the President singled-out EFInA for the role played as the founder of what becomes NIFIAN today through its concerted support for the propagation of financial inclusion initiates through the non-interest finance industry. With the inauguration of persons of track records into the Executive Council of the Association, NIFIAN is therefore set to take on the charge towards developing the Nigerian financial markets.

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