Another trouble looms as Tinubu’s govt dragged to Int’l arbitration over crude oil deal

Few weeks after Nigerian assets abroad, including presidential jets and properties in Liverpool, United Kingdom, were seized by a Chinese company enforcing a court ruling, a private company, Donnington Nigeria Ltd, in partnership with international firms, has announced its decision to pursue international arbitration against the Nigerian government led by President Bola Tinubu.

The dispute centers around the ACD/CTN (Cargo and Crude Oil Tracking and Notification) scheme.

The ongoing controversy threatens to tarnish Nigeria’s international image, especially as the nation is actively seeking foreign investments amidst ongoing concerns about contract breaches and governance issues.

According to sources, Gary Summers, a solicitor based in London representing Donnington Nigeria Ltd, Donnington International AG, Vortexra UK, and DP World UAE, has formally addressed Attorney-General of Nigeria, Chief Lateef Fagbemi (SAN).

Summers criticized the recent appointment of a new consultant for the ACD/CTN scheme, alleging it undermines existing legal proceedings and raises significant transparency issues.

Donnington’s dispute with the Federal Government involves claims that officials from a prior administration improperly redirected the contract despite an executive order favoring Donnington following a comprehensive procurement process.

The company asserts that the ongoing legal issues have prevented the implementation of the scheme, costing Nigeria billions annually.

The firm is challenging the recent award of the ACD/CTN contract to P-LYNE Nigeria Ltd, affiliated with Sahara Energy Group, arguing that this decision presents conflicts of interest.

They contend that the involvement of a crude oil trading company undermines the integrity of the tracking scheme and may overlook critical discrepancies in oil transactions.

Donnington’s original contract, structured under a no-cost, revenue-sharing model, was deemed more advantageous for Nigeria compared to the $21 million mobilization fee now allocated to P-LYNE.

The company has engaged international investigators, led by former London Metropolitan Police Assistant Commissioner Tarique Ghaffur, and a forensic accountant to evaluate the financial damages from the contract’s termination.

Donnington warns that without prompt resolution and reinstatement, Nigeria risks significant financial losses and further damage to its international reputation.

The arbitration proceedings are being conducted under the ICSID Convention, with claims of treaty violations. Without intervention from Attorney-General Lateef Fagbemi, this dispute may further impede Nigeria’s efforts to attract essential foreign investment.

 

(SAHARAREPORTERS)