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Nigeria sues JP Morgan Chase for $1.7B claims

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A London high court has begun hearing into a lawsuit launched by Nigeria against U.S. bank JP Morgan Chase, claiming more than $1.7 billion for its role in a disputed 2011 oilfield deal.

The civil suit filed in the English courts relates to the purchase by energy majors Shell and Eni of the offshore OPL 245 oilfield in Nigeria, which is also at the centre of ongoing legal action in Italy.

A panel of judges in Milan acquitted the companies and executives, who all denied any wrongdoing, of bribery last March. Prosecutors have appealed the ruling.

In the court documents pertaining to the London case, Nigeria alleges JP Morgan was “grossly negligent” in its decision to transfer funds paid by the energy majors into an escrow account to a company controlled by the country’s former oil minister Dan Etete instead of into government coffers.

The trial opened Wednesday with details of the claim by Nigeria’s lawyer, Roger Masefield.

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JP Morgan will present its defence early next week. The trial will end on April 7 and a judgment will likely take several months.

In court, Masefield said Nigeria’s case rested on proving two key points: there was a fraud and JP Morgan was aware of the risk of fraud.

He said JP Morgan had breached its duties.

“The evidence of fraud is little short of overwhelming,” Masefield told the court.

“Under its Quincecare duty, the bank was entitled to refuse to pay for as long as it had reasonable grounds for believing its customer was being defrauded.”

Quincecare is a legal precedent whereby the bank should not pay out if it believes its client will be defrauded by making the payment.

JP Morgan’s London offices deal with business for Europe, Middle East and Africa, including Nigeria.

A spokesman for the bank, in a statement to Reuters, said it was “confident that it acted appropriately in making these payments” and said the bank would “robustly defend against this claim”.

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The damages sought include cash sent to Etete’s company Malabu Oil and Gas, around $875 million paid in three instalments in 2011 and 2013, plus interest, taking the total to over $1.7 billion.

The Nigerian government at the time asked JP Morgan to make these transfers as part of the oilfield sale, court documents show.

The London case dates back to 1998 when Nigerian military ruler Sani Abacha awarded the offshore oilfield licence, OPL 245, to a company Etete owned.

The $20 million price tag – of which Etete paid about $2 million, according to court documents – was widely viewed by industry experts as too low given the block was expected to yield billions of dollars of crude, although it remains undeveloped.

Subsequent Nigerian administrations contested Etete’s rights to the field, triggering years of legal wrangling until a deal designed to end the battles was struck in 2011.

Etete’s company Malabu Oil and Gas handed the undeveloped OPL 245 back to Nigeria as part of a resolution agreement involving Shell and Eni.

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To complete the deal, Shell and Eni paid a signature bonus of about $200 million directly to the Nigerian government and then deposited $1.1 billion in the Nigerian government’s escrow account with JP Morgan, court documents show.

Etete’s lawyers did not comment on the trial as Etete is not a party in this suit.

Shell and Eni are also not parties to the London law suit and declined to comment.

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Good Morning! Here Are Some Major News Headlines In The Newspapers Today: EFCC arrests Edo accountant general over huge withdrawals days to Obaseki’s handover

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1. Less than 11 days to the handing over to the Governor-elect, Sen. Monday Okpebholo, by the outgoing Governor Godwin Obaseki of Edo State, the Economic and Financial Crimes Commission (EFCC) has arrested the State Accountant General, Mr. Julius O. Anelu, and four other officials said to be signatories to the state government accounts.

 

2. There was outrage on Friday after minors detained for three months over their involvement in the #EndBadGovernance protest collapsed during their arraignment in court. At the end of the sitting, the Federal High Court in Abuja granted bail to the 76 defendants, of which 26 were between 14 and 17 years of age. Most of the suspects looked unkempt and malnourished.

 

3. President Bola Tinubu has kicked against the recommendation of the National Economic Council (NEC) to withdraw the tax reform bills generating controversy. In a statement on Friday by Bayo Onanuga, his media aide, Tinubu asked NEC to allow the process to run its full course.

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4. Oil marketers, on Friday, revealed that the price of Premium Motor Spirit, popularly called petrol, produced by the Dangote Petroleum Refinery was between N1,015 and N1,028/litre depending on the quantity being purchased. Based on this, the dealers vowed to import the commodity and sell it below the Dangote refinery price, as well as the price being sold by the Nigerian National Petroleum Company Limited.

 

5. The Chairman of the All Progressives Congress Caretaker Committee in Rivers State, Tony Okocha, on Friday, warned critics against distorting the narrative of the crisis rocking the state, insisting that Governor Siminalayi Fubara is the investment of the Minister of the Federal Capital Territory, Nyesom Wike. Okocha disclosed this during a media parley with journalists at the party’s national secretariat in Abuja.

 

6. Edo State Police Command has detained a 16-year-old girl, Aisha Suleiman, who is accused of fatally poisoning her ex-boyfriend, identified as Emmanuel, and four other young men in Afashio community in the Etsako West Local Government Area of Edo State. The state Police Public Relations Officer, SP Moses Yamu said on Friday that police officers from the Jattu Division were quickly mobilised to the scene, intervened, and transported Suleiman safely to the station.

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7. The Chief Magistrate Court in Abuja has granted the detained social media critic, Martins Otse, popularly known as VeryDarkMan N2m bail and other stringent conditions. VeryDarkMan was arraigned on Friday at Court 1, Chief Magistrate Court, Wuse Zone 6, in the Federal Capital Territory for unauthorised use of a police uniform.

 

8. Ebonyi State Police Command announced the arrest of 177 suspects for various crimes in October 2024, including four linked to alleged organ harvesting and ritual killings. At a news conference in Abakaliki on Friday, the command’s Public Relations Officer, DSP Joshua Ukandu, disclosed the arrests, which included 162 males and 15 females. Ninety-two suspects have been charged to court, with others pending further investigation.

 

9. Suspected bandits have abducted 20 passengers along the link road between the Mariga and Kontagora local government areas of Niger State. The passengers were travelling along the road when bandits, who had mounted a blockade, forced them into a nearby forest.

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10. Justice Deinde Dipeolu of the Federal High Court sitting in Lagos has ordered the final forfeiture of the sum of $2.045m, seven choice landed properties and share certificates linked to the former Governor of the Central Bank of Nigeria, Godwin Emefiele. Justice Dipeolu also yesterday, ordered the permanent forfeiture of the monies and the two share certificates of Queensdorf Global Fund Limited Trust.

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Atiku, Obi knock FG over ‘inhumane treatment’ of minors arraigned for #EndBadGovernance protests

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Atiku Abubakar and Peter Obi, presidential candidates of the Peoples Democratic Party (PDP) and Labour Party (LP) in 2023, have condemned the “inhumane treatment” of minors arraigned for allegedly participating in the #EndBadGovernance protest.

BACKGROUND
Between August 1 and 10, a protest against tagged #EndBadGovernance was held nationwide.

The protesters demanded a reduction in the cost of governance, the return of petrol subsidy regime, food security, and fiscal discipline, among others.

The protest turned violent in some parts of the country while hoodlums used the opportunity to loot and vandalise public and private properties.

After the protests, the police announced the arrest of alleged perpetrators of the violence and looting in some states.

On Friday, some of those arrested for taking part in the protest, most of whom are children, were brought before a federal high court in Abuja.

At the commencement of the proceedings, four of the alleged protesters were hurriedly rushed out of the courtroom after they collapsed.

The court later granted N10 million bail to 72 defendants and removed four sick children’s names from the charge, while the remaining defendants pleaded not guilty.

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ATIKU: MINORS NOT SPARED BY ‘T-PAIN’S WICKEDNESS

Reacting to the incident on his X page on Friday, Abubakar berated the federal government for arraigning the minors.

The former vice-president noted that section 11 of the Child’s Rights Act guarantees the dignity of the child.

“A disturbing video of malnourished children being arraigned before a federal high court on the orders of the Bola Tinubu-led federal government has been brought to my notice,” Abubakar wrote.

“The horrible scene reminiscent of a Nazi concentration camp once again reflects the low premium the current government places on the lives of the vulnerable, especially children.”

Abubakar said the children prosecuted for their alleged role in the #EndBadGovernance protests have been subjected to dehumanising conditions for three months, adding that their delayed arraignment implies prolonged detention under unacceptable circumstances.

He said it is “reprehensible for a man who fought for democracy to demonise protesters,” adding that children have the right to peaceful protest as guaranteed by the Constitution and the Child Rights Act.

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“A nation can be assessed by the way it treats its most vulnerable citizens. It is saddening that even underage children are not spared from the wickedness of T Pain,” he said.

“The disturbing condition under which the alleged accused children were brought to court projects the very justification for their participation in the protest in the first place.

In October, Abubakar described Tinubu as ‘T-pain’. T-pain is the stage name of Faheem Najm, a singer in the United States.

‘T-pain’ in Nigeria’s social media space is coined from ‘Tinubu’ and ‘pain’ — and has been deployed as the president’s moniker due to the pervasive economic hardship.

OBI CALLS FOR PROBE
On his part, Obi asked for a thorough investigation into the treatment of the minors.

“I just watched the disturbing and condemnable scenes captured in a circulating video, showing 124 protesters—among them minors—appearing in court today as part of efforts to secure the enforcement of their fundamental rights,” Obi wrote on his X page on Friday.

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“The footage reveals minors, some so weak that they could barely stand, others fainting from sheer exhaustion and lack of nourishment.

“These children appeared visibly malnourished and starved—a condition that should alarm the conscience of every citizen in our nation.”

Obi said the suspects, including minors, were poorly handled while in federal custody, adding that protesting “bad governance is their constitutional right in a democratic dispensation”.

The former governor of Anambra noted that many of those serving in the current administration fought for good governance while in opposition.

Obi commended the presiding judge’s decision to halt the trial, which he noted prevented Nigeria from further embarrassment as a democratic nation.

“I would like to call on relevant authorities, especially the minister of justice and the attorney general of the federation, the police, and the DSS, as well as the National Human Rights Commission, to thoroughly investigate such inhuman treatment of minors to avert such incidents in the future,” he added.

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Amnesty International, SERAP urge Tinubu to release 76 #EndBadGovernance protesters

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The Socio-Economic Rights and Accountability Project (SERAP) and Amnesty International Nigeria have condemned the ongoing detention of minors involved in the August #EndBadGovernanceInNigeria protests.

In August 2024, Nigerian youths took to the streets to protest against the hardships, hunger, and poor governance that have marked the current administration. Many were arrested by Nigerian security forces, with 76 individuals arraigned in court today.

During the proceedings, one minor among the group collapsed in the Federal High Court in Abuja.

In response, SERAP took to its official X platform (formerly Twitter) to denounce the detention, calling on President Bola Ahmed Tinubu to release the protesters and drop all charges of ‘treasonable felony’ against them.

SERAP stated, “The Tinubu administration must unconditionally release the 76 #EndBadGovernance protesters and drop all charges of ‘treasonable felony’ against them, or face legal action. No one should ever be punished for the peaceful exercise of their human rights.”

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The organization criticized the government’s actions as an attempt to instill fear, evade scrutiny, deny citizens their fundamental rights, and entrench a culture of impunity in Nigeria. “Nigeria deserves better than this,” they added.

Amnesty International Reacts

Supporting SERAP, Amnesty International also denounced the arrest and detention of these minors. The organization urged the Nigerian federal government to release all detained individuals, emphasizing the importance of upholding constitutional and internationally guaranteed human rights, including the rights to freedom of expression and peaceful assembly.

“Amnesty International condemns President Bola Tinubu’s government for the continued detention of minors who participated in the August #EndBadGovernanceInNigeria protests. The attempts to subject these minors to a sham trial over alleged ‘treason’ demonstrate the government’s utter disregard for the rule of law. Authorities must release them immediately and unconditionally,” they stated.

Furthermore, Amnesty International highlighted the troubling situation of children in detention, noting that “in Katsina, at least 12 children under 16 years old were detained merely for being on the streets during the #EndBadGovernance protests. These children, with their entire lives ahead of them, are now at risk of being tried on fabricated charges.”

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