ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
Home Business

2018 budget threatened over N2.7tr arbitration fine against Nigeria

25th May 2018
in Business, Cover
0
Nigeria BUDGET Buhari
10
SHARES
75
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

A whopping $8.9 billion (N2.7tr) arbitration fine on Nigerian is threatening wipe off a sizeable chunk of its foreign reserves, derail the 2018 budget and plunge the economy back into recession if the Federal Government goes ahead to honour the obligation.

Two arbitration awards totaling over $8.9bn (about N2.7 trillion at CBN’s N305.4 as of May 22) have been made against the country and it does appears that efforts by the Muhammadu Buhari’s administration to dodge payments have failed, leaving it with no option than to honour the judgment obligations.

The fines emanated from the contractual actions of three previous administrations of Presidents Olusegun Obasanjo, Umaru Yar’Adua and Goodluck Jonathan regimes.

According to an online report a three-man arbitration panel, constituted under the rules of the Arbitration Act 1996 (England and Wales) and the Nigerian Arbitration and Conciliation Act (CAP A18 LFN 2004), had on March 20, 2013 awarded $6.6 billion in favour of Process & Industrial Development Limited (P&ID), an engineering firm registered in the British Virgin Island (BVI).

For failing to pay immediately that award was said to have attracted additional $2.3billion in accumulated interest at 7 per cent rate per annum over more than five years it remained unsettled. The amount due for enforcement today is about $8.9 billion.

The dispute between the engineering company and Nigeria went to arbitration after the firm accused the Ministry of Petroleum Resources of breaching a gas supply and processing agreement (GSPA) it signed in 2010 on behalf of the Federal Government.

The second award of about $21.24 million (N6.5 billion) was in favour of ENRON Nigeria Power Holding (ENPH) Limited, which signed an agreement with the Lagos State government for the construction of power projects in the state

The Federal Government guaranteed the agreement and has now been held liable after Lagos was accused of breaching it. The award in favour of ENRON, which has been affirmed by both high and appeal courts in the United States, has been awaiting settlement for more than a year and 26 days, since April 26, 2017.

Although the  Attorney-General of the Federation and Minister of Justice, Abubakar Malami, could not comment on the matter when called by a reporter that investigated the story, his Petroleum Resources counterpart,  Ibe Kachikwu, said the Federal Government was  aware of the outstanding obligations and was doing something about them.

Nigeria’s  2018 federal budget is equivalent of about $29.9billion. If someone has an arbitral award of about $11.1billion to collect, what will remain for the entire country of almost 200 million people?

“It means they have taken more than one-third of the 2019 budget. The truth is that the Nigerian economy cannot afford to pay that to anybody and still survive. That’s why I say it is calamitous ,” Mr Onyekpere said.
On January 11, 2010, P&ID signed a gas supply and processing agreement with the Ministry of Petroleum Resources on behalf of the Nigerian government.

Under the terms of agreement, P&ID was to build and operate an Accelerated Gas Development project to be located at Adiabo in Odukpani Local Government Area of Cross River State.

The federal government was to source for natural gas from oil mining leases (OMLs) 123 and 67 operated by Addax Petroleum and supply to P&ID to refine into fuel suitable for power generation in the country.

Rapheal

Rapheal

Related Posts

How new VAT law’ll affect cost of building materials
Business

How new VAT law’ll affect cost of building materials

29th November 2019
Business

Estate focus: Troy Court Surulere, Lagos

29th November 2019
PenCom approves 2,831 applications for annuity retirement in Q3, 2018
Business

Pension fund assets hit N9.58trn

29th November 2019
Next Post
Senate

Resource control splits senators

NUC blows the whistle on 58 univarsities

NUC blows the whistle on 58 univarsities

Seek international help on killiings, Soyinka tells FG

Seek international help on killiings, Soyinka tells FG

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Highlights

Arsenal sacks Emery after 18 months 

CAF Confederation Cup: Rangers assure win over Pyramid FC in Enugu

South Africa court rejects Zuma appeal to prevent corruption trial

Bushfires at centre of Australia’s latest climate strike walkout

British drug-maker’s immunotherapy cancer treatment gets speedy review by medicines watchdog

Gov. Dickson attributes second term “feat” to divine intervention

Trending

NAF Jets destroys ISWAP gun trucks in Borno
National

Again NAF fighter jets destroys terrorists equipments, kills dozens in Borno 

29th November 2019
0

  Molly Kilete, Abuja The Nigerian Air Force(NAF), said its Air Task Force (ATF) of Operation LAFIYA...

Arsenal appoint Ljunberg interim manager

Arsenal appoint Ljunberg interim manager

29th November 2019
Trump makes surprise visit to Afghanistan, meets Afghan president

Trump makes surprise visit to Afghanistan, meets Afghan president

29th November 2019
Arsenal sacks Emery after 18 months 

Arsenal sacks Emery after 18 months 

29th November 2019
CAF Confederation Cup: Rangers assure win over Pyramid FC in Enugu

CAF Confederation Cup: Rangers assure win over Pyramid FC in Enugu

29th November 2019
The Sun Nigeria

Follow us on social media:

Categories

  • Abuja Metro (785)
  • Arts (150)
  • Broken Tongues (139)
  • Business (12,929)
  • Business Week (90)
  • Cartoons (69)
  • Citizen Joe (28)
  • Columns (7,253)
  • Cover (24,551)
  • Culture (39)
  • Duro Onabule (144)
  • Editorial (1,645)
  • Education Review (1,201)
  • Effect (377)
  • Elections (2,736)
  • Entertainment (2,301)
  • Events (102)
  • Features (3,577)
  • Femi Adesina (4)
  • Food & Drinks (143)
  • Frank Talk (99)
  • Funke Egbemode (108)
  • Gallery (7)
  • Health (1,669)
  • Insights (150)
  • Kalu Leadership Series (47)
  • Kunle Solaja (3)
  • Kunle Solaja (23)
  • Letters (147)
  • Lifeline (1,769)
  • Lifestyle (239)
  • Literary Review (650)
  • Marketing Matters (47)
  • Muiz Banire (2)
  • National (56,129)
  • News (1,647)
  • Offside Musings (46)
  • Opinion (4,073)
  • oriental news (782)
  • Politics (10,564)
  • Press Release (4)
  • PressClips (184)
  • Public Sphere (136)
  • Ralph Egbu (161)
  • Shola Oshunkeye (23)
  • Sideview (1)
  • South-west Magazine (816)
  • Sponsored Post (1)
  • Sporting Sun (5,539)
  • Sports (10,354)
  • Sun Girl (1,037)
  • Tea Time (27)
  • The Flipside – Eric Osagie (73)
  • The Sun Awards Live (67)
  • The Sun TV (102)
  • Thoughts & Talks (30)
  • Time Out (167)
  • Today's cover (175)
  • Tola Adeniyi (63)
  • Travel (78)
  • Travel & Tourism (153)
  • Trending (82)
  • TSWeekend (1,317)
  • Turf Game (133)
  • Uncategorized (9)
  • Updates (106)
  • Views from Abroad (56)
  • Voices (131)
  • World (16)
  • World News (6,439)
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.