By John Ikani
Nigeria’s Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi (SAN), on Friday, disclosed that Glencore, a global commodities powerhouse, has committed to compensate Nigeria with a substantial $50 million for its involvement in unlawful activities within the country.
Fagbemi made the revelation during the Ministerial Sectoral Updates convened at the National Press Centre, Radio House, Garki, Abuja.
Heritage Times HT had previously reported a landmark decision in a UK court in 2022, where Glencore was slapped with a hefty £276.4 million fine for reportedly bribing Nigerian officials to secure advantageous crude oil trading contracts.
Glencore’s UK energy trading arm confessed to greasing the palms of Nigerian and Cameroonian officials between 2011 and 2016.
This legal tussle ensued after a thorough investigation and prosecution by the UK’s Serious Fraud Office, exposing Glencore’s illicit dealings, including lavish private jet bribes to Nigerian officials.
In response to mounting legal pressure, Fagbemi disclosed during the gathering that the Ministry recently concluded intricate negotiations with Glencore, culminating in an agreement where the conglomerate pledged to pay compensation.
According to Fagbemi, “The Ministry, acting on behalf of the Federal Republic of Nigeria, finalized a Settlement Agreement with Glencore International A.G. on April 25, 2024, stipulating that Glencore will disburse $50 million USD as penalty and compensation for specific activities within Nigeria.”
Asset Recovery, Management, Foreign Contracts
Underlining the Ministry’s accomplishments in international asset recovery, foreign contracts, and management, Fagbemi highlighted the signing of an asset-sharing pact between Nigeria and the Bailiwick of Jersey in February 2024, facilitating the restitution of £2,125,944 in corruption proceeds.
President Bola Tinubu’s endorsement enabled the funds to be allocated towards the ongoing Abuja-Kano Road project.
Fagbemi further underscored a monumental victory in an arbitration case initiated by Nigeria against Process and Industrial Development Limited(P&ID), where a UK commercial Court nullified an arbitral award exceeding $11 billion that had been granted against the Nigerian government in the United Kingdom, citing breach of a gas supply and processing agreement.
“Moreover,” he noted, “thanks to the tireless efforts of our legal team, Nigeria has been awarded interim costs totalling £20 million against P&ID. This case taught us invaluable lessons, as it had the potential to deplete our entire foreign reserves,” Fagbemi emphasized.
Ease of Doing Business
In a bid to stimulate economic growth, Fagbemi revealed that the Justice Ministry streamlined guidelines for the incorporation of companies limited by guarantee.
“My office granted a total of 1,432 approvals for the registration of companies limited by guarantee in the past year,” he disclosed.
Fagbemi assured Nigerians that ongoing efforts seek to ensure strategic reforms across various sectors, affirming the Ministry’s commitment to enhancing governance for efficient service delivery.
More Insights
The Federal Ministry of Justice serves as the legal arm of the Federal Government of Nigeria, primarily tasked with initiating lawsuits on behalf of the government.
The AGF serves as the chief law officer of the federation, pivotal in reviewing and implementing policies.
The FMOJ’s jurisdiction extends across virtually all federal government ministries and agencies, especially in matters pertaining to laws, rules, and regulations.
Glencore plc, headquartered in Baar, Switzerland, stands is a Swiss multinational commodity trading and mining behemoth.
