The Attorney-General of the Federation and Minister of Justice, Abubakar Malami have revealed that the Federal Government has settled a long-standing $5.26bn contractual dispute with a foreign investor group in the steel sector for $496m.
According to a statement on Sunday by the Special Assistant, Media, and Public Relations, Office of the AGF, Dr. Umar Gwandu, the mediation proceedings were under the Alternative Dispute Resolution framework of the International Chamber of Commerce led by Phillip Howell-Richardson.
The government says the settlement agreement came into effect on 19 August 2022.
“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 percent.
“A claim for over $10bn 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,” Gwandu said.
He further revealed that the source of the disputes were five contracts entered into by the 1999 – 2007 administration of President Olusegun Obasanjo which gave complete dominance over the Nigerian steel space to one company group, the Global Steel group.
According to him, in 2008, the administration of Umaru Yar’ Adua proceeded to terminate the contracts contrary to legal advice offered by the Federal Ministry of Justice, which cited the termination cost in the form of damages.
