Ajaokuta steel: Nigerian government settles contractual dispute with investor 

The Nigerian government says it has settled the long-standing contractual dispute with a foreign investor group in the steel industry reducing it from $5.258 billion to $496m.

The country’s Attorney General and Minister of Justice, Abubakar Malami, revealed this in a press statement through his media aid Dr. Umar Jibrilu Gwandu, in Abuja.

The mediation proceedings, according to Malami, came into effect on 19 August 2022 through the International Chamber of Commerce’s (ICC) Alternative Dispute Resolution (ADR) framework led by Mr Phillip Howell-Richardson.

He said Nigeria succeeded in reducing the claim in mediation brought by the international firm of King and Spalding, legal representatives of the Global group, by 91%.

“A claim for over $10 billion was threatened in arbitration before the International Chamber of Commerce, International Court of Arbitration, Paris, in respect of five major contracts of 2004-2007 – covering steel, iron ore, and rail.”

“The administration of President Muhammadu Buhari, however, took decisive steps to resist this claim, rather than pass it on to a future administration with ballooning interest.”

Malami reiterated the commitment of President Muhammadu Buhari-led Federal Government of standing firm to continue to make assiduous efforts in protecting the public interest and ensuring that Nigeria is not denuded of its resources through whatever means.

Recall that the seeds of the disputes can be traced to five contracts entered into by the 1999 -2007 administration that gave complete dominance over the Nigerian steel space to one company group, the Global Steel group.

Hauwa Abu