$9bn Fine: FG has commenced extensive investigations locally and internationally

The Federal Government has vowed to investigate and possibly prosecute all the parties involved in the controversial P&ID contract, which made the country to be fined $9.6 billion by a British court.

The Minister of Justice and Attorney-General of the Federation, Abubakar Malami said the government would leave no stone unturned in order to prosecute anyone found guilty.

In a statement made available to the public, Malami stressed that the investigation commenced by the Federal Government would unmask everyone involved in awarding the contract.

“There is indeed an ongoing investigation being extensively and intensively carried out by agencies of government. It is indeed concerted. It is borderless and there are no limitations as to who and who can be invited and who cannot be invited. I wouldn’t like to be specific on personalities but I want to state categorically that those that were involved in the process of drafting the agreement, in the process of signing the agreement and conduct of the contract are being investigated for the purpose of establishing the existence of fraud or otherwise.”

The backstory: P&ID‘s contract with the Federal Government was signed in 2010 under the administration of Nigeria’s former President, Dr Goodluck Jonathan. The Nigerian government struck a deal with the Irish firm to supply gas to a processing plant built and run by P&ID in Calabar.

Specifically, the deal was supposed to span 20 years. However, the Nigerian government failed to keep its side of the agreement, prompting the firm to seek legal action against Nigeria.

In 2013, P&ID reportedly won a $6.6 billion arbitration case against Nigeria. Basically, the figure was calculated based on what the company was estimated to earn over the course of the 20 years agreement. However, with the accumulated interest payments, the sum now tops $9 billion, which amounts to 20% of Nigeria’s foreign reserves.