- Have any questions?
- contact@ymonitor.org
Why Does the Federal Government Owe Billions to a Multinational Company?
by Davis Udeogu
Fallout as Nigeria Fails to Complete Lucrative Gas Supply and Production Arrangement with Foreign Company
In 2010, Nigeria, under late President Umaru Musa Yar’adua, entered into what was conceived as a 20-year agreement with an engineering and product management company, Process and Industrial Developments Limited (P&ID)
It was intended that P&ID would build a modern gas processing plant to refine natural gas, which Nigeria would receive free of charge to generate an estimated additional 2,000 megawatts of power for the national grid. (Note that Nigerian currently generates on average 4,000 megawatts of power, well below potential)
P&ID would have benefited from this by selling the by-products of this refinement (propane, ethane, butane), for what was projected to be profits in billions of dollars.
The Nigerian Government (then under President Goodluck Jonathan) however, (though depressingly expectedly) failed to hold up its end of the agreement, which included installation of pipelines and related infrastructure as well as arrangement with relevant agencies, and the project fell apart before any work had even begun.
Thus both eliminating a new source of much needed power to the country and any future profit for the multinational company P&ID for the period of 20 years.
Following months of fruitless negotiation with the government, P&ID initiated formal arbitration proceedings and took the matter to a tribunal formed in London, under the requirements of the Nigerian Arbitration and Conciliation Act in 2012. By January 2017, the tribunal ruled in favour of P&ID stating that Nigeria owed the firm billions in damages.
11 Comments
[…] to seize an estimated $9 billion in assets from Federal Government over an aborted gas project. You may also like: Why Does the Federal Government Owe Billions to a Multinational Company? In 2015, P&ID was awarded a sum of $6.6 billion by a London tribunal during an arbitration […]
Very rapidly this site will be famous amid all blogging visitors, due to it’s pleasant posts
Great beat ! I would like to apprentice while you amend
your site, how can i subscribe for a blog site? The account
aided me a acceptable deal. I had been tiny bit acquainted of
this your broadcast provided bright clear idea
Its such as you learn my mind! You seem to grasp so
much about this, like you wrote the book in it
or something. I think that you simply can do with some p.c.
to drive the message house a bit, but other than that, that is wonderful blog.
A great read. I will definitely be back.
Hello! I just wanted to ask if you ever have any problems
with hackers? My last blog (wordpress) was hacked and I ended up losing many months of hard work due to no back up.
Do you have any solutions to stop hackers?
There’s certainly a great deal to find out about this issue.
I really like all of the points you’ve made.
Unquestionably consider that that you stated. Your favorite reason seemed to be at
the web the simplest factor to take note of. I say to you, I certainly get irked even as other people consider issues that
they plainly don’t recognise about. You controlled to hit the nail upon the highest and also outlined out the whole thing without having side-effects , people can take
a signal. Will likely be again to get more. Thank
you
Appreciation to my father who shared with me regarding
this blog, this weblog is truly awesome.
WOW just what I was looking for. Came here by searching for ps4 games
I needed to thank you for this wonderful read!! I certainly loved every bit of it.
I have you bookmarked to look at new things you post…
I absolutely love your blog.. Great colors &
theme. Did you make this site yourself? Please reply back as
I’m looking to create my very own blog and want to find out where you got this from or exactly what the theme is named.
Appreciate it!