Clarified Information
  • STORIES
  • VIDEOS
  • PODCASTS
  • EXPLAINER
  • WRITE FOR US
No Result
View All Result
Clarified Information
  • STORIES
  • VIDEOS
  • PODCASTS
  • EXPLAINER
  • WRITE FOR US
No Result
View All Result
Clarified Information
No Result
View All Result
ADVERTISEMENT
Home A MENU Editor`s Pick

Malami explains how Nigeria paid $496 million for breach of contract, when the country could have received $26 million instead

According to the AGF, Nigeria paid Indian Companies $496million As Settlement Over Ajaokuta And Other Steel Plants

Clariform Media by Clariform Media
3 years ago
in Editor`s Pick, Explainer, Policy
0
Malami explains how Nigeria paid $496 million for breach of contract, when the country could have received $26 million instead
ADVERTISEMENT
Share on FacebookShare on Twitter

Nigeria has settled a $5.3 billion claim made by two Indian companies over the ownership and control of Ajaokuta Steel Company and other steel plants.

RELATEDSTORIES

Fix university education with $23m Abacha loot if you value Nigerian students, ASUU tells FG

FUEL SUBSIDY: Reps steps up investigation of federal payouts for fuel imports, invites AGF for NNPC payment documents

Nigeria reaches agreement with United States on repatriation of new Abacha loot

Paris Club controversy hits up as Governor`s Forum once again cautions AGF Abubakar Malami

Nigeria’s Attorney-General and Justice Minister, Abubakar Malami said the settlement ‘rescued’ the country with about 91 percent reduction of the mediation claim from $5.258 billion to $496 million, which takes effect on 19 August 2022.

ADVERTISEMENT

BASIC FACTS

  • Nigeria Government has paid two Indian firms a combined sum of $496m in claims, when the county could have gotten $26 million in compensation instead.
  • The payment is a fallout of contract revocation, but the sum would have been up to $5.3billion
  • The Attorney General of the Federation and the Minister of justice confirmed this to the media.

WHAT WE KNOW

The Minister of Justice and Attorney General of the Federation, Abubakar Malami, has said the government settled two Indian firms a $5.3 billion claim over Ajaokuta and other steel plants in the country.

The settlement without arbitration saved the country 91% reduction of the mediation claim thus bringing the sum to $496 million Malami said.

The Indian companies – Global Steel Holdings and Global Infrastructure Steel with headquarters in the United Arab Emirates (UAE) had an agreement with the Nigerian government in 2004 during President Olusegun Obasanjo administration for five major concessions and share purchase of Nigeria’s steel industry.

ADVERTISEMENT

According to Malami, Nigeria and the companies had a fallout, leading to the revocation of the contracts in 2008 after the former accused the firm of asset stripping.

Malami said the termination of the contracts in 2008 was contrary to legal advice supplied by the federal ministry of justice, which highlighted the termination cost in the form of damages.

The Attorney-General explained that had the previous government not terminated the Ajaokuta share purchase agreement on April 1, 2008, and waited for 55 days, it would have terminated lawfully and the government would have collected more than $26 million from Global Steel as a settlement.

Malami added that the failure of the foreign firm to pay would have given Nigeria a right to over $26 million as liquidated damages, under clause 12 of the Ajaokuta share purchase agreement.

He said the Buhari government took decisive steps to ‘resist’ the claim, rather than pass it on to successive governments.

NOTABLE QUOTE

Malami noted that, “In 2016, the current government approved the execution of the modified concession agreement with Global Steel, which allowed the companies to retain the Nigerian Iron Ore Mining Company (NIOMCO) in Itakpe, Kogi State, North central Nigeria.

“The completion of the steel plants was meant to reduce Nigeria’s dependence on oil and produce as much as five million tons of steel in a year by government projection but yet to produce any steel since it was built by Tyazhpromexport, a Russian company.

“President Muhammadu Buhari made the completion of Ajaokuta Steel, for which construction started in 1979, a top priority when he came to power in 2015.

“However, the government reneged on the agreements, leading to a legal battle involving both parties at the International Chamber of Commerce, International Court of Arbitration, Paris.

ADVERTISEMENT

COMMENTARY

The Ajaokuta steel project have long become a white elephant in Nigeria. Billions have been sunk into the project with nothing to show for it.

Recall that the project was conceived as far back as 1979 and have transcended various government both military and civilian.

At the inception of the 4th republic, the Obasanjo’s government made effort to revive the project, but the effort ended as the previous one leaving nothing to show for the huge resources wasted in it.

A functional steel industry in Nigeria, apart from saving foreign exchange used for importation of the product, could be a panacea to industrial revolution in Nigeria.

Think about the fact that there is hardly any aspect of our domestic and commercial life that does not involve steel to some extent.

Our buildings, utensils, cars, roads, machineries etc, all have steel in it. Think of how much would come in as foreign exchange from the export of steel, especially at a time as this, when Ukraine a major steel export nation is at war.

For enquiries about this report, or to write for Clariform please send email to [email protected], or click here.

Tags: AGFAjaokuta Steel CompanyGlobal Infrastructure SteelGlobal Steel HoldingsMalamiTyazhpromexport
Share186Tweet116

For any enquiries please, email our editorial team at [email protected]. If you want to write for Clariform, sign up here.
Please subscribe to our YouTube channel, and join thousands of Clariformers on Facebook, Twitter and Instagram.

Previous Post

INSECURITY: Kidnappers demand up N90m ransom from families of 9 kidnap victims

Next Post

2022 NBA Conference Crisis: New president moves to restore injured reputation of Nigerian lawyers

READ MORE STORIES

Explainer

UK Care Worker Visa Reforms: What Immigrants Must Know and Do Before 2028

May 13, 2025
Biafra suporters on the match
Analysis

How IPOB’s Sit-at-Home Order Continues to Shape the Southeast: History, Impact, and Resistance

May 13, 2025
Home Office, Lunar House
Explainer

UK Immigration Reforms 2025: What Nigerians at Home and Abroad Must Know

May 13, 2025
UK STUDENT VISA: A reminder of the advice by UK High Commissioner to Nigeria to intending visa applicants
Explainer

UK Court of Appeal rules detention at Heathrow unlawful, setting a precedent for travelers facing deportation

May 12, 2025
The Opportunities From Erasmus+ 2024 Call, Benefits to Nigerian and African Students
News

UK Court of Appeal Rejects Student’s Attempt to Switch to Skilled Worker Visa

May 12, 2025
How to Invest in Nigeria’s Short-Let Market
Explainer

Your Ultimate Guide to Investing in Nigeria’s Short-Let Property Market

April 3, 2025
Next Post
2022 NBA Conference Crisis: New president moves to restore injured reputation of Nigerian lawyers

2022 NBA Conference Crisis: New president moves to restore injured reputation of Nigerian lawyers

SUBSCRIBE

Get the latest news, insights about immigration, career, financial security and how to get there. Join many others and learn the secrets right inside your personal inbox.
ADVERTISEMENT

TRENDING

REVEALED: Nigerian Celebrities who join NSPPD prayers every morning
Editor`s Pick

REVEALED: Nigerian Celebrities who join NSPPD prayers every morning

August 22, 2022
New Shortage List Could be a Possible Pathway for Low-Skilled Foreign Workers to the UK
News

New Shortage List Could be a Possible Pathway for Low-Skilled Foreign Workers to the UK

May 13, 2025
Explainer

UK Care Worker Visa Reforms: What Immigrants Must Know and Do Before 2028

May 13, 2025

HOME

LATEST NEWS

CLARIFORM TV

NEWS LETTERS

ABOUT CLARIFORM

Clariform is a UK-based independent media platform dedicated to providing in-depth analysis, expert insights, and well-researched reports on issues that matter to Nigerians at home and in the diaspora. Founded by a Nigerian immigrant, our mission is to bridge the information gap on immigration, business, investment, personal finance, and governance, offering clarity on opportunities and challenges in both the UK and Nigeria.

READMORE

QUICK LINKS

  • Home
  • Clariform TV
  • Video
  • Write for Clariform
  • Money
    • Property Investing
    • Stock Investing
    • Crypto Investing
    • Banking
    • Digital Asset
    • Side Hustles
    • Retirement
    • Savings & Budgeting
    • Startups
  • Migration
    • Pathways
    • Settling Down
    • Jobs & Career
    • Starting a Business
    • Life Abroad
    • Personal Finance
  • Newsroom
    • Politics
    • Economy
    • Health
    • Sports
    • Entertainment
    • Leadership
    • Features
    • Opinion
    • Analysis
    • Explainer
    • World News
    • News
  • More
    • Careers
    • About Clariform
    • Partner with us
    • Contact us
  • Home
  • Clariform TV
  • Video
  • Write for Clariform
  • Money
    • Property Investing
    • Stock Investing
    • Crypto Investing
    • Banking
    • Digital Asset
    • Side Hustles
    • Retirement
    • Savings & Budgeting
    • Startups
  • Migration
    • Pathways
    • Settling Down
    • Jobs & Career
    • Starting a Business
    • Life Abroad
    • Personal Finance
  • Newsroom
    • Politics
    • Economy
    • Health
    • Sports
    • Entertainment
    • Leadership
    • Features
    • Opinion
    • Analysis
    • Explainer
    • World News
    • News
  • More
    • Careers
    • About Clariform
    • Partner with us
    • Contact us

QUICK LINKS

  • STORIES
  • VIDEOS
  • PODCASTS
  • EXPLAINER
  • WRITE FOR US
  • STORIES
  • VIDEOS
  • PODCASTS
  • EXPLAINER
  • WRITE FOR US

NEWSLETTERS

Stay updated with News and Events. Subscribe to our newsletters

Disclaimer: All information on this website, our social media accounts and all platforms are of a general nature only. They do not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements, and seek independent professional advice, before making any decisions. For more T&C, Click Here.
  • ADVERTISE
  • TERMS & CONDITIONS
  • ADVERTISE
  • TERMS & CONDITIONS

Copyright 2023 © Clariform

No Result
View All Result
  • Home
  • Clariform TV
  • Video
  • Write for Clariform
  • Money
    • Property Investing
    • Stock Investing
    • Crypto Investing
    • Banking
    • Digital Asset
    • Side Hustles
    • Retirement
    • Savings & Budgeting
    • Startups
  • Migration
    • Pathways
    • Settling Down
    • Jobs & Career
    • Starting a Business
    • Life Abroad
    • Personal Finance
  • Newsroom
    • Politics
    • Economy
    • Health
    • Sports
    • Entertainment
    • Leadership
    • Features
    • Opinion
    • Analysis
    • Explainer
    • World News
    • News
  • More
    • Careers
    • About Clariform
    • Partner with us
    • Contact us

© 2023 Clariform Media