The Guardian
Email YouTube Facebook Instagram Twitter WhatsApp

Nigeria: How oil revenues got diverted to private pockets – Report


Oil1…The Malabu oil deal example
…Group seeks UK intervention to recover funds
International concern is mounting over the mismanagement of Nigeria’s oil industry funds, with the corruption watchdog, Global Witness, urging the help of the United Kingdom to recover funds lost by Africa’s leading oil and gas producer in the famous but controversial Malabu oil deal.

A letter cited by Reuters has asked UK’s Crown Prosecution Service, CPS, to freeze the assets of those involved in the Malabu oil deal through which Nigeria lost more than a billion dollars due to lack of transparency.
Global Witness revealed in its recent report titled, ‘How to Lose $4 billion’ that in Nigeria and two other African countries – Democratic Republic of Congo and Angola – lucrative oil and mining assets worth $4 billion were awarded to companies with hidden owners, thereby diverting vast resource revenues to unknown private pockets.
Under this arrangement, Nigeria lost $1.1 billion in the Malabu oil deal, the loss coming due to lack of beneficial ownership transparency in the oil and gas industry, Global Witness said in its report.

Reports have indicated that more than half of the $1.1 billion (N171.32 billion) paid to Malabu Oil and Gas for the procurement of one of Nigeria’s richest oil fields, OPL 245 by Royal Dutch Shell and Italian firm Eni was used to bribe Nigerian politicians and intermediaries who helped to secure the controversial deal.
According to Italian prosecutors, some of the N83 billion ($533 million) slush money was used to buy private jets and armoured vehicles.
“We are investigating many money transfers to many people in various countries who received sums that vary from millions of dollars to thousands of dollars,” Reuters quoted the letter to the UK’s Crown Prosecution Service as reading.
British prosecutors acting on the request to freeze the assets of those involved in the Malabu oil deal, have already frozen two accounts with combined sum of N29.5 billion ($190 million) belonging to the chief intermediary, Emeka Obi.
Former oil minister, who was convicted for money laundering in France, Dan Etete, owns Malabu Oil and Gas. The company was incorporated five days before the oil block was awarded to it in 1998 during the regime of military dictator, Sani Abacha.
With regard to how anonymous companies made $1.1 billion disappear in a single deal in Nigeria, Global Witness noted that “in 1998, the then Minister of Petroleum Resources, Dan Etete, awarded a company called Malabu Oil and Gas a huge oil block off the West African coast called ‘OPL 245’, without publicly declaring that he was the owner of the company.
“The OPL 245 block was said to have been purchased in 2011 by European oil companies, Shell and Eni, who paid $1.1 billion into an account set up by the Nigerian government”.
The report stated, “The government agreed to transfer the same amount to a Nigerian company called Malabu Oil and Gas, which was secretly owned by a former oil minister, Dan Etete. Malabu eventually passed $800 million of the money to a network of Nigerian companies with anonymous owners, which were apparently vehicles for paying others involved in the deal”.
Shell and Eni had always denied paying money to Malabu, however, Global Witness said court evidence arising from suits brought against Malabu for unpaid fees by the middlemen involved in facilitating the deal showed that they knew that the funds would go to the company.
Global Witness noted that the OPL 245 deal had now been investigated by authorities in three countries, saying the Nigerian House of Representatives in a 2014 vote called on the government to cancel the deal, and the Economic and Financial Crimes Commission “is also investigating, and recently questioned Dan Etete.”
“With a new government now in power publicly committed to rooting out corruption, there is a risk that Shell and Eni may have their exploration rights revoked because of the way the block was acquired,” it said. It also added, “This iconic case demonstrates why EITI must embrace beneficial ownership disclosure as a matter of urgency”. Global Witness said if the EITI required disclosure of beneficial owners, it would pave the way for real transparency in the country.

Receive News Alerts on Whatsapp: +2348136370421


    Nigerian with dirty deals, its Nigerian Culture stealing is not Corruption in Nigeria as a matter of facts, when a bank manager or director convert Banks money into his or her own account they will always plead not Guilty, those people should be secretly executed and seized every property belongs to them anywhere period. Nigerian will sit up, they are afraid to die trust me, execute one or two big guys, they will never steal again.See China secretky execute people connected to Corruption including anybody involved ok

  • Yemi Amodu

    Sterling Homes ltd selling Plots and Acres of Land at Hebron
    Garden Estate, Lekki, Lagos.

    Hebron garden estate is owned by Sterling homes Ltd and it’s
    completely free from “omo-onile” and government acquisition. Land
    mass: more than 10acres. Land type: dry, sandy and leveled. Location: Lekki,
    about 6minutes drive to Eleko beach and 15minutes drive to Lekki free trade
    zone. There are several notable Landmarks before the estate. These include, The
    Lagos Business School, Crown Estate, Farapark, Sapphire Garden, Green Springs
    School and Shares immediate environment with Mayfair Gardens and Beechwood
    Estate & lots more. PAYMENT PLAN FOR 440 SQM: *Smart plan: Outright payment
    #2.8m. *Easy Plan: ‎#3m. Spread #210,000 for 10months after the initial deposit
    of #900,000. And for 550 SQM: * Smart Plan:
    Outright payment #3.7m. *Easy Plan: #4m. Spread #280,000 for 10months after the
    initial deposit of #1.2m. For more information and site inspection, contact: yemi@sterlinghomesltd|
    Plot 2, River Valley Estate, Ojodu, Berger.| Mobile: 07084546154, 08136119495,.,./

    Sterling Homes Ltd selling Plots of Land for sale at Moriah
    estate Ikorodu, Lagos.

    Moriah Park is strategically situated within Ikorodu, Lagos.
    The estate is located at Agbowa, Ikorodu and it’s just beside the Lagos State
    Housing Estate Ikorodu Lagos, popularly known as “Fashola Estate”. The land in
    the estate is measured 60 x 120ft standard plots or 648sqm with good
    topography. The land in this estate is free from omo onile activities and any
    known government acquisition. it’s owned
    by Sterling Homes LTD, RC: 894767. This estate has good road network, a table
    land, and it’s motor-able during the rainy season. Electricity poles, borehole,
    has been provided within the estate in due time. Special feature also includes
    a free architectural design. The promotional price is N750,000 outright for
    smart payment and for Flex payment is #200,000 at first installment then spread
    #100,000 for 7months at the total of #900,000 and for Easy payment is #68,750
    spread for 16months at the total of #1.1m. For more enquiries and site inspections
    Contact:| Mobile: 07084546154, 08136119495| Plot 2,
    River Valley Estate, Ojodu Berger Lagos.

    Sterling Homes ltd selling Plots and Acres of Land at Havilah
    Park and Garden Estate, Mowe, Ogun State.

    This estate is more than 120 acres, located at Mowe, close
    to Redemption Camp Ogun State. A unique location, with easy access to Berger
    and Lagos-Ibadan expressway; it is estimated to be maximum of 6 minute drive to
    link Lagos-Ibadan Expressway. The estate is a product good thinking meeting
    opportunity. It is designed to satisfy the desire of the middle-class who loves
    aesthetics and splendor. Title on the Land: Registered survey and approved
    layout plan Infrastructure: – Perimeter Fencing – Sewage disposal system –
    Electricity – Ultra modern borehole – Recreational facilities. – Environmental
    Security – Good Road Network, etc Payment plan • Outright payment is 630,000 •
    Instalment payment is a deposit of 100k and balance spread for 20months at 30k
    monthly. For more enquiry Contact yemi@| Plot 2, River
    Valley Estate, Ojodu Berger |Mobile: 07084546154, 08136119495

  • emmanuel kalu

    Even if there is no evidence right now, just the messy way the contract was awarded, so make it be cancelled and the funds returned immediately. we continue to allow all this leeches drain our country of resource both financial and natural resources. There is a need to make the process very transparent, put one person in charge, so that we can hold that person accountable for any fraud.