| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Iamgrey5(m): 5:25pm On Sep 03, 2019 |
NGRsenate:
Lobby a white man to favor a negro over a white man?
L O L Money is a universal language everyone understands bro |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Judybash93(m): 5:26pm On Sep 03, 2019 |
Impressive writeup... It's quite easy to understand the whole deal 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Nobody: 5:27pm On Sep 03, 2019 |
Shey we will not abandon Nigeria like this. |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by NGRsenate: 5:28pm On Sep 03, 2019 |
Iamgrey5:
Money is a universal language everyone understands bro The money the same white man gave you is what you think you’ll use against him 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by presh91(m): 5:29pm On Sep 03, 2019 |
Nice one op
Simple and clear 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Glycosunde: 5:30pm On Sep 03, 2019 |
This is the best writeup i have read in nairaland. Precise and concise. The op and the source should be given an award for a balance unbiased reportage. There are also obvious diadems that point to the fact that some greedy Nigerians are in d know how of these deals. Because I'm sure P:ID won't have been this so calculative to know all our f laws if there was no snitch and our greedy cabals with f finish selling Nigeria one day and when dat day come, nothing will be left for them to sell. Those people mentioned should be arrested and interrogated to unearth their own side of d story but trust buhari he won't do it because they are is people. This is one of d indices y d whites r already saying Nigeria will be in recession next year. Who knows, more dubious and exploitable judgements may be coming our ways soon 5 Likes |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Barywhyte(m): 5:30pm On Sep 03, 2019 |
Shoodboi:
Did Buhari mess up with the initial $850 settlement?
www.nairaland.com/attachments/10154565_image24_jpeg0fe5e48c340d8a34a853b788af33348a
Buhari did mess up but we cannot really blame him since he inherited the problem from his predecessors.
That is not P&ID’s problem though since government is continuous.
Why didn’t Buhari just pay?
Buhari is infamous for four terrible things:
1. Running a country into a recession within a short period.
2. Leaving the country for long periods of time.
3. Flouting agreements and court orders.
4. Delaying in appointing ministers.
All four got him into the current mess with P&ID.
Prove it…
www.nairaland.com/attachments/10154566_image25_jpeg22b53f22d872096438ee21ceb727ec01
The then General Buhari ran Nigeria into a recession during his one year and eight month long tenure that lasted from December 31, 1983 to August 27, 1985.
He ran Nigeria into a second recession soon after he became president in 2015. This one lasted from 2016 until 2017.
Experts say he will lead Nigeria into a third recession from mid-2020 until 2021.
Buhari was slow in appointing ministers after he was elected president in 2015 and 2019.
He took six months to appoint ministers in 2015 and three months in 2019.
The 2019 appointments could be considered six months if we count from February when he won the polls.
(Buhari was sworn in as president on May 29th in both instances.)
In 2015, Buhari only appointed Abubakar Malami as Attorney General and Minister of Justice on November 11.
On July 17, 2015, two months after Buhari became president, an arbitration tribunal in the UK upheld the $6.6 billion March 2013 judgment against Nigeria.
Nigeria was minister-less at the time.
Buhari is also in the habit of leaving the country for long periods of time to receive medical treatment in the UK.
In 2017, he even spent four months in the UK — at a single stretch.
Sometimes, he did not even bother handing over to Osinbajo before leaving.
Even when he handed over, the Aso Rock cabal still bypassed Osinbajo and flew documents to Buhari to sign while he was still receiving treatment in the UK.
This was what they did with Yar’Adua.
The public soon found out, causing Buhari to tell members of the cabal to direct all official documents to Osinbajo.
Let’s not talk about that part where Buhari disobeys court orders and agreements.
What did Malami do?
www.nairaland.com/attachments/10154572_image26_jpegc253b17eed8f2ba5b4fffc75455d0e49
In 2015, Buhari and Malami still refused to negotiate with P&ID even though it was becoming clear that the judgment will soon become a problem.
Malami started getting involved in the case around late 2016 and early 2017 when the British court upheld the 2013 Washington DC judgment and ordered Nigeria to pay P&ID over $9 billion.
Did Buhari and Malami open negotiations with P&ID?
No, the Buhari-led Nigerian government neither opened negotiations nor paid.
It is worthy to know that Nigeria was in recession at this time.
The cat and mouse game continued until mid-August 2019, when the UK court allowed P&ID seize Nigeria’s assets to recover its money.
What did the Nigerian government say?
The Nigerian government went into overdrive after the mid-August 2019 judgment.
Zainab Ahmed, the Minister of Finance, Budget and National Planning, called the judgment an attack on every Nigerian.
Godwin Emefiele, the governor of the Central Bank of Nigeria, has called P&ID a fraud.
Buhari and some members of his cabinet have also thrown some facts around. Let’s analyze them.
Buhari’s government vs P&ID vs the Truth
www.nairaland.com/attachments/10154573_Image27_jpegf82fd03071a4d2bdbb08f9ec4af4e481
Buhari’s government: The 2010 contract with P&ID was flawed. Nigeria did not sign it.
P&ID: The contract was legitimate.
The Truth: It was flawed … for Nigeria at least.
Yar’Adua was ill and there was a power vacuum back home at the time the deal was signed.
It is possible that neither Yar’Adua nor Jonathan signed that deal.
But someone signed for Nigeria. Who was that person?
Verdict: The fact remains that the deal was probably signed.
Whoever signed for Nigeria is not P&ID’s business. That’s Nigeria’s headache.
However, it might help if Nigeria can prove that someone forged a signature or something. Bonus points if P&ID was involved in the sham.
Winner: P&ID if it was signed. Nigeria if it was not.
Buhari’s government: P&ID demanded a $850 million settlement even though it did nothing.
P&ID: We spent $40 million on the licenses, equipment and some other stuffs after we thought about the deal in 2006.
The Truth: It seems P&ID did really spend some money but that was before it even approached Nigeria for a deal.
Verdict: Whatever P&ID spent on licenses, feasibility studies and whatever is none of Nigeria’s business.
Their expenses only become relevant after the deal was signed.
Winner: Nigeria obviously!
Buhari’s government: The 2010 contract with P&ID was void because the Federal Ministry of Petroleum Resources does not manufacture gas or possess oil or gas reserves.
P&ID: The gas was to be procured from Exxon Mobil and Addax petroleum’s OML 67 and 123, and not from the ministry.
The Truth: The Federal Ministry of Petroleum Resources was sourcing the gas from Exxon Mobil and Addax petroleum.
Verdict: This is a no-case argument. The Nigerian government should have never brought it up.
Winner: P&ID.
Buhari’s government: NNPC was not aware of the deal.
P&ID: Nigeria set up a Joint Operating Committee on July 22, 2009.
On board were two representatives from the Nigerian petroleum ministry, two from NNPC and the last two from P&ID.
The Truth: No one knows.
Verdict: NNPC should speak up on this.
Winner: It should be P&ID. But this too is a no-case argument.
Buhari’s government: P&ID cannot sue Nigeria in a UK court over a deal that happened in Nigeria.
P&ID: Sure, we can and we did.
The Truth: This part is very complicated and we have addressed it below.
Verdict: Buhari should be right but as we said, it is complicated.
Should P&ID be able to sue Nigeria?
www.nairaland.com/attachments/10154574_image30_jpege03cec93047375e5470346807bdecb69
This part is very complicated. Only experienced lawyers specialized in international, business and corporate law can give answers.
But a short answer:
In a Nigerian court? Maybe.
In US or UK courts? No, although it could sometimes be a maybe.
Can P&ID sue the Nigerian government in a Nigerian court?
www.nairaland.com/attachments/10154582_image31_jpeg842aadcc6d9a6bae1131129c4cb3dec3
P&ID or any other person or company in Nigeria or elsewhere cannot sue the Nigerian government in Nigeria because of sovereign immunity.
Sovereign immunity is a legal doctrine that protects a country from legal cases — even when the country is wrong.
A country can only get sued when it waives its sovereign immunity.
So P&ID cannot sue the Nigerian government or the Ministry of Petroleum Resources, which is considered a part of the executive arm of the Nigerian government.
Can P&ID sue the Nigerian government in a US or UK court?
www.nairaland.com/attachments/10154584_image32_jpegae25574a9d94c72fd47db56c5eb0c095
P&ID cannot sue Nigeria in a US or UK courts because of what we call state immunity.
State immunity is the international version of sovereign immunity.
It protects a country, business or government agency from suing another country in its own country.
However, state immunity could sometimes be waived at the discretion of the country where the lawsuit is happening. That is, US and UK in this case.
Most countries do not waive state immunity over the possibility of a political and diplomatic fallout.
Do US and UK courts have jurisdiction over the case?
The answer is a no.
P&ID should be unable to sue Nigeria in the UK or US because the both courts lack jurisdiction over the deal.
(Jurisdiction is “the official power to make legal decisions and judgments.”)
The deal happened in Nigeria and involved the Nigerian government and a business registered in the British Virgin Islands.
Only a Nigerian court and maybe, a British Virgin Islands court, should have jurisdiction over such case.
The Buhari-led federal government raised this argument but the London court went on to deliver judgment anyway.
But the British Virgin Islands depends on the UK for its foreign affairs
True! But this lawsuit does not seem to be one that falls under British foreign affairs.
Even if it did, it is of no concern to the US.
Yet a US court passed the initial $6.6 billion judgment.
How then did P&ID win the judgment?
The UK court proceeded with the lawsuit because P&ID sued under the 1958 Convention on the Recognition and Enforcement of Arbitral Awards (aka the New York Convention).
The New York Convention is an international treaty that allows businesses sue other countries in their own country.
159 countries including the UK, US and Nigeria are signatories to this treaty.
www.nairaland.com/attachments/10154583_image33_jpegb8c1d5dccbc1b0ec5b8bbd45c8489de9
Signatory nations are in light blue.
But this too should have been impossible since P&ID is registered in British Virgin Islands and not in the US or UK.
Other things you need to know…
www.nairaland.com/attachments/10154585_image35_jpeg941efdd219e86898a3d62bc01254bd57
A US hedge-fund manager called VR Capital Group has acquired a 25% stake in P&ID since judgment was delivered.
(Hedge funds are businesses that invest in very risky businesses.)
Why did VR Capital Group invest in P&ID?
VR Capital Group wants P&ID to continue suing the Nigerian government
Why?
Because that is the only way it (VR Capital Group) can make a profit.
Hedge funds are a game of numbers.
The investors know they will either profit massively or lose miserably. There is no middle ground.
They make their profits when the courts allows them retrieve and sell Nigeria’s assets.
They lose if the courts don’t.
For now, they are funding P&ID so it can continue suing the Nigerian government.
There are indications that VR Capital Group and P&ID have even contracted US-based lobbyists to allow it seize Nigerian assets in the US.
Who are lobbyists?
Lobbyists are people or businesses who “make donations” to US senators and legislators money so they can raise a motion, pass or frustrate a law in the Congress.
(Congress is US’s version of our National Assembly.)
What do you mean by “donations”?
Lobbyists cannot pay the senators and legislators directly.
So they take them out for dinner, buy them gifts, fund their reelection campaigns, organize fundraisers, donate to their communities, find their staff and families good paying jobs … you get the deal.
What? Isn’t that bribery?
You don’t call it bribery when it is supported by the government.
Lobbying is legal in the US.
Can we call it legal bribery?
Yes. Lobbying is legal bribery and corruption.
What are the consequences for Nigeria?
This P&ID court case has legal consequences not just for Nigeria but for almost every other poor and middle income country out there.
Other multinationals will start suing other countries including Nigeria over the most frivolous reasons if P&ID is ever able to seize Nigeria’s assets.
This will further impoverish poorer countries and put them under the armpits of these richer nations.
It is unfortunate but that’s how the international politics work.
Source.
We are just a laughing stock in the comity of nations. How could Nigeria two individuals drag her in mud like this? This is beyond shame. Thank you op for this expository! 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by sylve11: 5:35pm On Sep 03, 2019 |
Shoodboi:
Lies & Deceit: Everything You Need To Know About Nigeria's $9 Billion Debt To P&ID
This post contains everything you will ever need to know about the Nigeria-P&ID gas deal.
It's a pretty long read but is well-formatted for easy reading.
The prelude
www.nairaland.com/attachments/10154535_image1_jpegec44744ab36e8094482d9fd6d0f703b8
Sometime in 2006, two Irish businessmen, Michael Quinn and Brendan Cahill, founded Process and Industrial Developments Limited (P&ID).
The company is a sole purpose company set up to utilize Nigeria’s huge natural gas reserves.
On January 11, 2010, P&ID signed a Gas Supply and Processing Agreement (GSPA) with the Nigerian Ministry of Petroleum Resources.
The Ministry of Petroleum Resources was acting on behalf of the Umaru Musa Yar’Adua-led Nigerian Federal Government.
As per the agreement, P&ID will process natural gas from oil mining leases (OML) 67 and 123 to generate electricity for Nigeria while making some considerable profits for itself.
The license for OML 123 is held by Addax petroleum.
Addax petroleum is a subsidiary of Mirror Lake Oil and Gas Company Limited, which itself is a subsidiary of the Sinopec International Petroleum Exploration & Development Corporation (SIPC).
SIPC is a subsidiary of China Petroleum & Chemical Corporation (aka Sinopec Group).
Exxon Mobil holds the license for OML 67.
What exactly is P&ID?
www.nairaland.com/attachments/10154536_image2_png1a8f685c15feef92820538fea13ff231
We already mentioned that P&ID was founded by Brendan Cahill and Michael Quinn in 2006.
(Cahill is alive but Quinn is late. It seems he passed away on January 25, 2018.)
P&ID claims it is a United Kingdom company even though it is registered in The British Virgin Islands (BVI).
The British Virgin Islands is a British Overseas Territory (BOT).
BOTs are not part of the UK. They have their own independent governments but depend on the UK for defense and foreign affairs.
Why the British Virgin Islands?
www.nairaland.com/attachments/10154546_image3_png5fb6b9fb09f1795dc718ea6dcb234c98
The British Virgin Islands is an infamous tax haven.
Tax havens are countries or territories where multinationals register their businesses or subsidiaries to avoid paying taxes in their home countries.
Most businesses registered in tax havens only exist on paper.
These businesses — called shell companies — often have billions of dollars in the bank accounts registered in the name of the company even though they do not have physical offices or employees.
The British Virgin Islands does not slam these companies with any taxes and only requires them to pay an annual license fee.
Who sets up a shell company?
Practically anyone; from the clean to the dirty.
Corrupt politicians set up shell companies to hide stolen wealth.
Criminal organizations set up shell companies to launder and hide their proceeds from crime.
Rich people set up shell companies to hide their money from their significant other in case of a bitter divorce.
Rich people and multinationals companies set up shell companies to:
• Avoid paying taxes in their home country.
• Hide patents.
• Mask their country of origin.
• Allow them operate in countries where they might not be allowed to.
• Protect them from lawsuits in their country or the country where they operate.
There are several other reasons but these are the most common.
Is P&ID a shell company?
Yes, P&ID is a shell company.
This is evidently clear because P&ID is registered in British Virgin Islands and does have a physical headquarters or even a website.
Its only website is pandidfacts.com, which is more of a blog than a website.
Everything on the website is all about the failed Nigerian natural gas project.
www.nairaland.com/attachments/10154522_aaa_jpeg9483a0c356f014cf20d8a4575dfae2d7
And what sort of multinational adds “facts” at the end of their top level domain?
P&ID has no social media presence either.
It is not on Facebook and only joined Twitter in April 2019. So far, it has 83 tweets and 17 followers.
The tweets are all about the failed Nigerian gas deal while the followers are Nigerian and Irish journalists and newspapers.
We think P&ID set up office in the British Virgin Islands to hide its taxes from the British government.
@ op, thank you. nice write up.  1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by FantasticJ: 5:36pm On Sep 03, 2019 |
Very very granular. Thank you Op. Now, who want to understand P&ID care with Nigeria? Raise your hands now  2 Likes |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by blackboy(m): 5:37pm On Sep 03, 2019 |
Nigerian leaders those ingovernment are the problem of this country.They areonly after their personal gain.All oil n gas belongs to the FGN through NNPC JV with oil companies.Nigeria has no case.Someone offered a deal that will give Nigeria 2kmegawatt electricity and our govt couldnt fulfill their own part.Make they find out of court settlement sharparly. . If we have stable electricity.Nigeria will be better than South Africa |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by san316(m): 5:38pm On Sep 03, 2019 |
Only intellectually lazy... what am I saying? Even the intellectually lazy cannot afford not to read this article. Thank God this is the first time I am reading something on this P&ID matter and I got it from the perfect perspective.
Kudos OP and the writer 3 Likes |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by san316(m): 5:40pm On Sep 03, 2019 |
sylve11:
@ op, thank you. nice write up. See this one. It is people like you they kill in South Africa. Occupying people's space for nothing. How can u quote the entire post? 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by saintade01(m): 5:41pm On Sep 03, 2019 |
In as much as everyone is praising the writeup and the writer for a clear and unbiased reportage. We should proffer our solutions out of this mess.
I want to believe the government can still put the offer back on the table and renegotiate the deal. This is settling out of court except they have ulterior motives.
Both government goofed but ordinary citizens will suffer the repercussions most. If you know you know. 3 Likes 1 Share |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Enuoyan: 5:42pm On Sep 03, 2019 |
Kudos to whoever writes this article, though lengthy, but very simple and detailed 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by eriko4life(m): 5:43pm On Sep 03, 2019 |
best write-up I ever read. kudos to the writer. u too good. abeg 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Nobody: 5:49pm On Sep 03, 2019 |
We have about $40b in foreign reserve in the US and the Irish guys had got a ruling for the sum of $9b to be paid to them. This must drop the Naira to N1,500 to a dollar, no matter how the CBN intervenes.
Meaning inflation to triple soon; Nigerians, you must pay for the inefficiency of your government.
Next, the government will knowo how to keep to business agreements. The earlier they pay, the better; because 7% interest applies every year.
We should have been enjoying additional 2000 mw of electricity now. Buhari thinks he can disobey court orders like he does in Nigeria. UK and US are not Nigeria, you must pay that money or you lose your entire foreign reserves. 3 Likes |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by StupidNLmods: 5:53pm On Sep 03, 2019 |
NGRsenate:
Lobby a white man to favor a negro over a white man?
L O L Very funny  I wonder if iamgrey5 reads his writes before posting.. All these APC supporters sef  |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by eedimo(m): 5:55pm On Sep 03, 2019 |
INFORMATIVE! The best of nairaland 3 Likes 1 Share |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Nobody: 5:56pm On Sep 03, 2019 |
hustler86:
Jeopardized future... I pity the lives of the poor masses Mortgaged future. |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Blackbelly(m): 5:56pm On Sep 03, 2019 |
Shoodboi, you have my respect! This is the most expository write up I've ever read on Nairaland. You must be a patient person judging by the meticulousness of your write up. I'll always watch out for your posts. You just got a fan! 2 Likes 
|
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by henribj(m): 5:56pm On Sep 03, 2019 |
nice write up OP, you made it an interesting and eye opening read. 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by ikorodureporta: 5:58pm On Sep 03, 2019 |
understanding the deal for d first tym 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Pinkybush: 5:59pm On Sep 03, 2019 |
3 GBOSAA for the Op 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Tobies: 5:59pm On Sep 03, 2019 |
This is actually the best write up iv seen since i was born...nice one.. 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Iamgrey5(m): 6:02pm On Sep 03, 2019 |
StupidNLmods:
Very funny
I wonder if iamgrey5 reads his writes before posting.. All these APC supporters sef Lobying is more complicated and sophisticated than you think bruv. It has nothing to with skin color but the highest bidder. |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by gomol: 6:05pm On Sep 03, 2019 |
This is the best n most simplify article I have ever read.My question is y do FG put our foreign reserve in another country? (a lay man asking, pls no insult) 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by sisisioge: 6:08pm On Sep 03, 2019 |
Lawd! Why do our leaders hate us so much? It is well fa...this Nigeria don tire me! |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by israelmao(m): 6:24pm On Sep 03, 2019 |
FG has been told to restrain from phantom probe and engage a negotiator.Is that call meant to conceal the dirty and shady deals between P&ID and their accomplices or conniving agents?Or is it a ploy to make us assume that everything followed due process or is it to give cover to those conniving agents who might be part of the current government?Or is it to cover up the non-challant or perfunctory attitude of the current government toward the unfinished legal proceedings as it was battling or grappling with settling down for governance after the swearing-in in 2015? 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Nobody: 6:24pm On Sep 03, 2019 |
This is just amazing, a long read but it was worth it. Especially the breaking of professional jargon for Local man to understand.
Check my signature for all your digital marketing solutions 1 Like |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Nobody: 6:26pm On Sep 03, 2019 |
alezzy13:
Quite an exhaustive read. Probably the best, unbiased rendition the ill-fated deal I've come across.
While the PMB and GEJ camp (yes, including their noisy minions here on NL) continue to trade blame, the fact remains BOTH leaders goofed terribly and PID exploited us the fullest. |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Jobabori(m): 6:26pm On Sep 03, 2019 |
[quote author=Chi59 post=81887567]If only the Buhari led government had paid the settlement in time.
Lord, why do we have such foolish leaders?? [/quotpe]
Buhari led government should pay settlement for a contract not signed by Yaradua, GEJ or any of their petroleum ministers? . Only a foolish leader should harken to your foolish advise. |
| Re: Nigeria’s $9 Billion Debt To P&ID: Everything You Need To Know by Hardebayo(m): 6:28pm On Sep 03, 2019 |
Thank you for the write-up, I have been looking for who will do this for me since. From this, I can say that the contract was a fraud. A contract running to billions of dollars cannot be passed without the Federal Executive Council, Andoakaa was right when he said the FG should sue P&ID for corruption. 1 Like |
