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Nigeria’s Loss of $9.6bn: Who’s Responsible?

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By Eric Elezuo

On August 16, 2019, the Nigerian government received the greatest shock of its administration when a British Court awarded over $9 billion damages against it for failing to honour a contract in a landmark judgement.

The judgment, which was delivered by Justice Butcher of The High Court of Justice, Business and Property Courts of England and Wales, ruled against Nigeria’s objection to arbitration which in 2017 settled that the Nigerian government should pay $6.6 billion as damages to a company, Process & Industrial Development Limited (P&ID). The damages and interest add up to a figure above $9 billion.

Nigeria’s former Attorney-General, Mr. Bayo Ojo, was among the three member arbitration panel that gave judgement in favour of P&ID against the Nigerian government and at the same time secured the monetary award. While Mr. Ojo tried his best to ensure that Nigeria escaped with a paltry $250 million, the majority opinion of Lord Hoffmann and Anthony Evans, the two other members of the panel, ensured that Nigeria lost the case.

Hoffmann and Evans held that P&ID’s expenditure and income should have been about $6.597 billion if the agreement was duly performed by the government. They also insisted that the award should be paid together with interest at the rate of 7 per cent from March 20, 2013.

Ever since the judgement, blames have been traded between the present All Progressives Congress (APC) administration led by Muhammadu Buhari, and previous administrations dating back to the late Umaru Musa Yar’dua era.

Leading the blame game is the returnee Minister of Justice and Attorney General of Nigeria, Mallam Abubakar Malami. The Minister, who was reappointed by President Muhammadu Buhari, few days after the judgement described the ruling as the “consequences of the underhand dealings of the past administration”.

He said: “Sadly, in spite of the spirited and concerted efforts of the current administration to combat corrupt practices and rent-seeking in all its forms, Nigerians woke up on Friday, August 16, 2019, to the rudest consequences of the underhand dealings of the past administration that has resulted in the award of $9 billion against the Federal Republic of Nigeria, by a British court which ruled that Process and Industrial Development Limited had the right to seize $9 billion in Nigerian assets.”

The lawyer went ahead and specifically fingered the administration of former President Goodluck Jonathan as the culprit, saying he connived “with local and International conspirators in a bid to inflict grave economic adversity on the Federal Republic of Nigeria and the good people of Nigeria.”

Malami concluded his blame with a threat, stressing that the federal government would punish any government official whose action or inaction led to the award of $9 billion damages against Nigeria. He also promised that the government “will vigorously defend its rights to protect its people’s assets around the world against the enforcement of the judgement.”

It is worth knowing that the value of the penalty represents approximately a fifth of the country’s foreign reserves of $45bn. the fact of the case is itemised as follows:

  • The agreement, which set the basis for the current legal action, was a Gas Supply and Processing Agreement signed in January 2010.
  • If concluded, the deal would have offset a significant percentage of Nigeria’s energy deficit (Africa’s largest oil and gas producer has a notoriously epileptic power supply).
  • P&ID claims about $40m were expended on the project, but Nigeria did not meet its obligations and cost the company billions in damages representing future profits it had lost.
  • In 2013, after the deal failed, P&ID dragged the government to court and won a $6.6bn arbitration case against the Federal Government.
  • Four years later, the firm was awarded $6.6bn, with an additional $2.4bn included as accrued interest.
  • Nigeria for years resisted P&ID’s attempts to begin enforcement proceedings of the rulings in the US and the UK; the judgement by the British court now allows the firm to begin seizing Nigerian assets.
  • Under the Jonathan administration, Nigeria negotiated an out-of-court settlement with P&ID for a far smaller sum of $850m. However, the president left the payment to the incoming Buhari administration, which set aside the settlement and asked its lawyers to return to litigation.

Undaunted by the threats and name calling of the Buhari government, the Jonathan camp responded, throwing the blame to the feet of the present administration. It alleged that the administration failed to pay the $850million out of court settlement with P&ID just to spite the previous administration. The government has however, denied that it did not handle the case diligently.

In a statement, signed by a former aide of Jonathan, Mr. Reno Omokri, the Jonathan camp noted as follows:

“Former President Jonathan was not president in January 2010. During that time, he was completely shut out of power by an unelected cabal that ran Nigeria during the period of the ill health of the late President Yar’Adua, before the National Assembly courageously intervened on February 9, 2010.”

Jonathan assumed office in February 2010 and, according to Omokri, the deal had by then already been set in motion by Rilwanu Lukman, Umaru Musa Yar’Adua’s Petroleum Minister. The cabinet and close allies of the late president had refused to turn over sensitive documents to his deputy because Yar’Adua hadn’t handed over to him as constitutionally stipulated.

“That same cabal has resurrected and has now coalesced around President Muhammadu Buhari, with some of them being made either ministers, or formal and informal advisers. As a matter of fact, the main man behind that cabal is now one of the closest persons to General Buhari.”

Another dangerous twist was added to the crisis, when a statement purportedly made by P&ID surfaced, blaming President Buhari and Mallam Malami for the high cost of the damage. The statement detailed events that transpired since 2010 when the deal was first contracted.
An extract of the statement read thus: “The Attorney General’s pronouncements in the Nigerian press are a clear attempt to cover up his own incompetence and that of the Buhari Administration. This is a matter, which could have been settled shortly after he took office in November 2015 for $850 million. Instead, he personally took the decision to gamble on the arbitration and turned an $850 million liability into a $9.6 billion liability.”

It is okay that the Attorney General has sworn to prosecute and punish everyone involved and responsible for the loss, if it is eventually executed, one thing must be established, will he also prosecute himself if given the afore-mentioned, he also had a role to play.

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Tribute to a Mentor, National Icon, Professor Jibril Aminu

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By Kema Chikwe

I join other associates of Professor Jibril Aminu not only to mourn his passing but to celebrate the life of an extraordinary Nigerian—a man whose intellect, integrity, and influence shaped generations and transformed institutions. His recent passing in Abuja marks the end of a monumental chapter in our nation’s history.

Professor Aminu was more than a scholar; he was a national compass. As Minister of Education, he envisioned an equitable and progressive system that empowered minds and bridged social divides. Later, as Minister of Petroleum, he steered one of Nigeria’s most critical sectors with exceptional competence, transparency, and patriotic foresight. The reforms he implemented laid foundations that are still felt today.

Yet perhaps his greatest legacy lies in the quiet, determined way he mentored others. To thousands, he was a teacher. To many more, he was a father figure, a counselor, a voice of reason in turbulent times. He believed in excellence, discipline, and service above self—and he lived those values until the very end.

Professor Jibril Aminu was one of the closest friends of my late brother-in-law, Ajie Ukpabi Asika, and his wife, my eldest sister, Chief (Mrs.) Chinyere Asika. By extension, he became a cherished friend to our entire family. When he, as Minister of Education, sought to publish his visionary speeches on education in Nigeria, my sister introduced me to him.

At the time, Dilibe Onyeama and I were on the planning committee for the first Enugu International Book Fair and served on the executive committees of both the Publishers Association and the Association of Nigerian Authors. Dilibe, being a well-known author, was introduced to my sister and to Professor Aminu to collaborate on the project. Although Dilibe later withdrew from the project, I continued working on it. After editing the manuscript, I submitted it to Heinemann for publication. David Ogbodo, Professor Aminu’s dedicated and resourceful Special Assistant, provided all the necessary logistics. Despite my several trips to Heinemann in Ibadan and my best efforts, the book was unfortunately never published due to circumstances beyond my control. Nonetheless, Professor Aminu recognized my intellectual potential and encouraged me to pursue my doctorate at the University of Nigeria, Nsukka.

He later appointed me to the Governing Council of the Nigerian Students Loans Board, where I served as Chairman of the Establishment Committee and later as Vice Chairman of the Tenders Board. This marked my first exposure to federal-level public service and became a springboard for many of my future achievements.

As President of Klub Feminique—a circle of close, accomplished friends—I organized a fundraiser to establish a computer center. Professor Aminu’s financial support was remarkable. He not only contributed generously but also sent a high-profile representative to serve as Guest of Honour.

When he became Minister of Petroleum, he connected me with Chief Alex Nwokedi, then Public Relations Director at NNPC and also a close family friend. Through this connection, I was given the opportunity to produce and reproduce the journal Investment Opportunities in Nigeria’s Petroleum Sector. This engagement significantly boosted my career as a publisher.

When my husband faced challenges with his Owerri Modern Market project—challenges arising from efforts by detractors within the State Military Government to cancel his contract—Professor Aminu stood by us and supported the restoration of that contract. He was always there to help.

For me, the support, motivation, inspiration, and encouragement I received from Professor Aminu prepared me for much of what I have achieved in life. He was a mentor to whom I remain deeply indebted.

Nigeria has lost a giant. But his ideals live on—in the lives of those he mentored, in the institutions he strengthened, and in the future he so selflessly helped to build.

Farewell, Professor Aminu. Your light was bright. Your legacy is eternal.

Mrs Kema Chimwe is a former Minister of Aviation 

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Harakati Za Fosters Sub-Regional Integration, Development in Africa at Second Annual Conference

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By Ruth Akpan

Harakati Za Muungano, a not for profit organization dedicated to African unity, integration and policy reforms for the development of Africa, has hosted its second annual conference. The event held at the prestigious Accra International Conference Centre in Accra, Ghana.

The six-day conference, which ran from May 7th to May 13th, 2025, brought together distinguished delegates from 14 African countries including Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Liberia, Niger, Nigeria, Senegal, Sierra Leone, Togo, Cameroon, Gabon and the Republic of Congo.

With the theme “Structural Transformation Through Deep Policy Reforms To Produce Sub-Regional Integration And Expedited Development In Africa”, the conference provided a platform for policymakers, thought leaders and experts to share insights and experiences in driving Africa’s development through policy reforms and sub-regional integration.

As Special Guest of Honour, Chief (Dr.) Dele Momodu, Chairman Ovation International, shared valuable insights from his extensive travels across Africa, emphasizing the importance of collaboration and collective actions in achieving Africa’s development goals.

A panel of distinguished speakers including the President of the International Secretariat of HARAKATI ZA MUUNGANO, Mr. Kwame Danquah, Lecturer at Université Cheikh Anta Diop de Dakar, Senegal, Dr. Chérif Saloum Diatta, Former Deputy Minister of Fisheries and Marine Resources in Sierra Leone, Mr. Charles Rogers, Lecturers at Université Général Lasana Conté de Sonfonia Guinea, Mr. Harouna Ly and Dr. Mamoudou Sounossy Diallo delivered thought-provoking presentations on the conference theme.

This second edition of the HARAKATI ZA MUUNGANO conference served as a catalyst for meaningful discussions, networking opportunities, and the exchange of ideas among participants fostering continuous development and integration among African countries.

Harakati Za Muungano is aimed at promoting sociopolitical policy reforms, drive progressive changes and facilitate structural transformation in key sectors such as education, healthcare, infrastructure, energy and water resources, promoting good political and economic policy reforms and to facilitate the establishment of a consolidated union in Sub-Saharan Africa.

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The Enduring Significance of June 12

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By Prof Mike Ozekhome SAN

INTRODUCTION

June 12 holds an indelible place in Nigeria’s political consciousness, a date now officially designated as the nation’s “Democracy Day”. More than just a public holiday, it serves as a sad reminder of a defining moment in Nigeria’s quest for democratic governance, intricately linked to the struggles of Chief Moshood Kashimawo Olawale Abiola. His electoral victory in the 1993 presidential election, widely acclaimed as the freest and fairest in Nigeria’s history even as at today, and its subsequent annulment, unleashed a torrent of political and legal crises that profoundly shaped the trajectory of the nation. Understanding June 12 therefore requires delving into the idealism it represents, the betrayal it embodied, and its enduring political and legal importance.

THE GENESIS OF HOPE: THE JUNE 12, 1993 PRESIDENTIAL ELECTION

By the early 1990s, Nigeria was tired of protracted military rule. Decades of coups, counter-coups, and authoritarian regimes had subdued political development, entrenched corruption, and fostered deep-seated distrust between the populace and the government. General Ibrahim Babangida’s military regime, having promised a transition to civilian rule, had embarked on a seemingly elaborate program. Some people dubbed it “transfixion programme” This program culminated in the presidential election of June 12, 1993.

The election itself was unique. Unlike previous multi-party contests, the Babangida regime had streamlined the political landscape to just two government-sanctioned parties: the Social Democratic Party (SDP) (“a little-to-the-left”) and the National Republican Convention (NRC) (“a little-to-the-right”). This binary choice forced a broader alignment across Nigeria’s often-fractious ethnic and religious lines. The SDP presented an unusual ticket: Chief M.K.O. Abiola, a wealthy Yoruba businessman and philanthropist from the South-West, as its presidential candidate, paired with Ambassador Babagana Kingibe, a Muslim from the North-East, as his running mate. This Muslim-Muslim ticket was unprecedented and signaled a potential shift from Nigeria’s traditional ethno-religious political divisions.

The NRC fielded Alhaji Bashir Tofa (a Kanuri) and Sylvester Ugoh (an Igbo). The electoral process on June 12, 1993, unfolded remarkably smoothly. Despite initial logistical challenges, Nigerians turned out in large numbers to vote, demonstrating an undeniable enthusiasm for democracy. The results, though never fully announced by the National Electoral Commission (NEC), began to seep in, indicating a clear and decisive victory for MKO Abiola. Independent observers, both domestic and international, hailed the election as exceptionally free and fair, devoid of the widespread rigging and irregularities that had plagued previous Nigerian elections. It was a moment of genuine national unity and optimism, a powerful affirmation of the Nigerian people’s desire for self-governance. Abiola ostensibly won across Nigeria, beating Bashir Tofa even in his Gyadi-Gyadi, Albassa ward in Kano.

THE ANNULMENT: A BETRAYAL AND THE DAWN OF NATIONAL CRISIS
The ecstasy of the June 12 election was tragically short-lived. In a move that shocked the nation and the international community, the Babangida regime, on June 23, 1993, unilaterally annulled the results of the presidential election. The reasons cited were vague, ranging from “irregularities” to the need to “save the Judiciary.” This annulment was widely perceived as a direct affront to the democratic will of the Nigerian people and a cynical betrayal of the transition program.

The annulment ignited a profound political crisis. Protests erupted across the country, particularly in the South-West, Abuja and other major cities across Nigeria. Civil society organizations, human rights activists, pro-democracy groups (such as the National Democratic Coalition – NADECO), CLO, UDD and student unions galvanized public opposition. The country was plunged into a period of intense civil unrest, strikes, and widespread condemnation from international bodies and foreign governments. The annulment not only shattered public trust, but also deepened existing ethnic and regional fault lines, as many viewed the action as a deliberate attempt by the military-Northern establishment to deny the South-West its legitimate turn at the presidency.

THE STRUGGLE FOR VALIDATION AND THE FIGHT FOR DEMOCRACY

The annulment of the June 12 election led to a prolonged period of agitation and repression. MKO Abiola declared himself the rightful president and was eventually arrested and detained in 1994 after declaring his intention to reclaim his mandate. He remained in detention for four years and died in custody on July 7, 1998, under suspicious circumstances that had the finger of the government, even as the country was transitioning to another civilian government.

The June 12 movement inspired a generation of pro-democracy activists, journalists, students, and labour leaders who risked their lives to challenge military dictatorship. It became a rallying point for advocating civil liberties, electoral justice, and the return to democratic governance. I was, with all humility, one of the frontline torch bearers of our fight against military dictatorship.

MKO ABIOLA’S STRUGGLE: A SYMBOL OF RESISTANCE

At the heart of the June 12 struggle was Chief M.K.O. Abiola himself. Having clearly won the election, he rightly refused to accept the annulment. He embarked on a courageous and ultimately self-sacrificing campaign to reclaim his mandate. On June 11, 1994, exactly one year after the election, Abiola declared himself president-elect in the Epetedo area of Lagos Island, asserting his rightful claim to the presidency. This act of defiance was a direct challenge to the authority of the military regime, which by now was headed by General Sani Abacha.

Abiola was subsequently arrested on June 23, 1994, on charges of treason. His incarceration became a central focus of the pro-democracy struggle. Despite immense national and international pressure, Abiola remained resolute, refusing to renounce his mandate in exchange for his freedom. His continued detention and unwavering stance served as a powerful symbol of resistance against military tyranny and a constant reminder of the unfinished democratic business. His wife, Kudirat Abiola, also became a prominent voice in the struggle, actively campaigning for her husband’s release and the revalidation of the June 12 mandate. She was tragically assassinated in 1996 in broad daylight.

Abiola’s prolonged struggle ended tragically with his death in detention on July 7, 1998, just weeks after the sudden death of General Abacha in equally sinister circumstances in Aso villa. His death, under suspicious circumstances extinguished the immediate hope for the revalidation of his mandate but solidified his place as a martyr for democracy in Nigeria who paid the ultimate supreme price for redemptive messiahnism.

THE POLITICAL IMPORTANCE OF JUNE 12

The political importance of June 12 in Nigeria cannot therefore be overstated. Symbol of Democratic Will: June 12 stands as the most potent symbol of the Nigerian people’s unequivocal desire for democratic governance. It demonstrated that Nigerians, across ethnic and religious divides, could unite and vote freely, rejecting the imposition of leadership.

Symbol of Electoral Integrity
June 12, 1993, remains a benchmark for free and fair elections in Nigeria. The transparency and credibility of that election are often cited as the gold standard against which future elections are measured.

2. National Unity

MKO Abiola’s victory cut across ethnic, religious, gender, status and regional divisions, proving that national unity and collective political will were possible in Nigeria. It challenged the long-standing narrative that Nigeria could not overcome its deep-seated ethno-religious differences.

Catalyst for Sustained Pro-Democracy Struggle: The annulment fueled a sustained and relentless pro-democracy movement. Groups such as NADECO, CLO, UDD, DA, other civil society organizations and various activists relentlessly agitated against military rule, sacrificing personal liberty and, in some cases, their lives. This pressure, both internal and external, played a significant role in ultimately forcing the military to hurriedly relinquish power in 1999.

Exposure of Military’s Ills: The June 12 saga laid bare the inherent contradictions and self-serving nature of military rule. It exposed the military’s disdain for popular will and its willingness to undermine the very transition it claimed to oversee.

Shaping the Fourth Republic: The experiences of June 12 profoundly influenced the design and character of Nigeria’s Fourth Republic, which began in 1999. The framers of the new constitution and the political elite were keenly aware of the need to prevent a repeat of such an annulment.

National Healing and Recognition: For decades, June 12 remained a contentious issue, primarily celebrated in the South-West as a “Democracy Day.” However, in a significant move towards national healing and historical recognition, President Muhammadu Buhari, on June 6, 2018, officially declared June 12 as Nigeria’s Democracy Day, replacing May 29. This act posthumously honored MKO Abiola with the Grand Commander of the Federal Republic (GCFR), Nigeria’s highest national honour reserved only for Presidents and Heads of State. This official recognition was a crucial step in acknowledging the historical injustice and unifying the country around a shared democratic ideal.

4. Rejection of Military Rule

June 12 represents the collective will of Nigerians to reject military dictatorship. The years following the annulment saw increased pressure on the military, culminating in the return to civilian rule in 1999 after the death of General Sani Abacha.

5. Restoration of Democratic Values

The recognition of June 12 as Democracy Day affirms Nigeria’s commitment to democratic governance, civil liberties, the rule of law, and the right of the people to choose their leaders.

FROM MAY 29 TO JUNE 12: A SHIFT IN NATIONAL NARRATIVE
Before 2018, Nigeria’s Democracy Day was celebrated on May 29—the day the military handed over power to a civilian government in 1999. I argued repeatedly like many Nigerians that May 29 was merely symbolic of military benevolence rather than popular sovereignty. In contrast, June 12 embodied the people’s struggle, sacrifice, and demand for democracy. Its restoration was therefore a long held dream.

LEGAL IMPORTANCE OF JUNE 12

Beyond its political ramifications, June 12 also carries significant legal importance.

Judicial Independence and Integrity Tested: The annulment of the election, supposedly to “save the Judiciary,” ironically exposed the Judiciary’s vulnerabilities under military rule. The Judiciary was drawn into the political fracas, with conflicting court orders and legal battles that ultimately highlighted the limitations of the legal system when confronted by raw military power. The Judiciary infamously failed the country during the crisis.

Questions of Sovereign Will vs. Military Decrees: The annulment raised fundamental legal questions about the supremacy of the people’s sovereign will, expressed through a free and fair election, versus the arbitrary power of military Decrees and Edicts. The military junta argued its Decrees were supreme, but the legal community largely condemned the annulment as an illegal act, devoid of any legitimate legal basis.

Focus on Electoral Reforms: The flaws and vulnerabilities exposed by the June 12 experience spurred subsequent efforts at electoral reforms in Nigeria. There was a clear understanding of the need for robust electoral laws, transparent processes, and an independent electoral commission capable of withstanding political pressure.

Reinforcement of Constitutionalism: The struggle underscored the importance of constitutionalism and the rule of law. The arbitrary nature of the annulment reinforced the argument for a return to civilian rule governed by a written constitution that guarantees rights and limits arbitrary power.

Precedent for Popular Mandate: While the mandate was not revalidated, the June 12 experience set a powerful precedent: a free and fair election outcome, reflecting the will of the people, holds immense moral and legal weight that cannot be easily dismissed without significant repercussions. It became a benchmark against which future elections would be measured.

CONCLUSION:

June 12 is far more than just a date on the calendar; it is a national narrative woven with threads of hope, betrayal, struggle, and eventual recognition. It stands as a powerful testament to the resilience of the Nigerian people and their unwavering commitment to democratic ideals. The MKO Abiola struggle, characterized by his electoral victory, the subsequent annulment of the freest election in Nigeria’s history, and his ultimate sacrifice, served as a catalyst for a sustained pro-democracy movement that eventually led to the end of military rule.

Its political importance lies in its role as a unifying symbol of democratic will, a catalyst for political transition, and a critical lesson in the perils of authoritarianism. Legally, June 12 exposed the fragility of institutions under military rule, underscored the imperative of robust electoral laws, and reinforced the sanctity of the popular mandate. By designating June 12 as Democracy Day, Nigeria has officially acknowledged this painful yet pivotal chapter of its history, honoring the sacrifices made and reaffirming its commitment to the principles of freedom, justice, and democratic governance. The echoes of June 12 continue to echo, serving as a constant reminder that the voice of the people, expressed through the ballot box, must always be respected and upheld. Whether Nigerians have imbibed or exhibited lessons learnt from June 12 is another matter altogether.

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