Nigeria to Lose $4.5 Billion in Malabu Oil Deal

Nigeria to Lose $4.5 Billion in Malabu Oil Deal
.…As EFCC Receives Document from Experts
The Acting Chairman, Economic and Financial Crimes Commission, EFCC, Ibrahim Magu, has given assurances that the Commission is revving up its investigations into the Malabu Oil Scandal, and those complicit will be prosecuted.

Magu gave the assurance while receiving some documents from the President, Resource for Development Consulting, Dr. Don Hubert, on November 29, 2018 at the EFCC Headquarters, Abuja.

Hubert, an extractive industries analyst, analyzed the terms and conditions for the sale of the controversial Oil Prospecting Lease, OPL 245, otherwise known as Malabu Oil Block, to Shell and Eni.

In the report, Hubert, pointed out that at least one third of the value of the oil block, which comes from fiscal concessions in the 2011 Resolution Agreement, RA, between Nigeria and the operators of the block, essentially takes away oil profit from the government and the Nigerian people.

While receiving the report, Magu promised to ensure that it is thoroughly dealt with.

“We shall constitute a committee to digest it so that investigation can be extended to all grey areas and charges brought or amended against the suspects accordingly”, he said.

Magu added that the EFCC was taking its time to investigate the scandal, so that “a water tight case” will be made before prosecution.

According to the Canada-based analyst, the organization has helped countries, rich in oil and gas to get a fair share of the revenue, analyze oil contracts and build economic models, ultimately forecast government revenue. “The 2011 RA will result in the loss of revenue to the Nigerian people and government to the tune of at least $4.5 billion”.

“The reason for the losses is the core relevant of a production sharing contract, the share of profit to the government has been removed from this particular deal,” he said, explaining further that “as it stands today, Nigeria will lose between $6 billion and N10 billion to the deal, which is now being investigated outside Nigeria”.

He explained that the result of their findings indicated an estimate minimum loss of $4.5billion as a result of the 2011 deal.

Chairman of HEDA Resource Centre, Olarewaju Suraju, a “corruption hunter”, and one of the partners in the team that produced the findings on the OPL 245, commended the efforts of the EFCC in the fight against corruption.

Suraju who said they prepared the damning finding to enable the Nigerian government identify and punish the individuals and organizations involved in the oil scam explained that all hands must be on deck to stop further pillage of the nation’s oil revenue.

“It is the strong recommendation of HEDA and the partners that the OPL 245 license should be revoked and we now have both economic and legal basis to challenge the deal”, he said.

Tony Orilade
Ag. Head, Media & Publicity
30th November, 2018
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EFCC Impostor Bags 8 Years
Justice Aisha Kumaliya of the Borno State High Court sitting in Maiduguri on November 29, 2018 convicted and sentenced one Babakura Mustapha to eight years imprisonment for the offence of impersonation and obtaining money under false pretence.

The offence is contrary to and punishable under Section 132 Penal Code Law Cap 102, Laws of Borno State. Mustapha was arraigned on June 6, 2018 and pleaded “not guilty”.

In the course of the trial, the prosecution led by Khalid Sanusi presented three witnesses and tendered some documents, which were marked Exhibits A1-A4.

Mustapha allegedly posed as a staff of the EFCC with the name “Mr. Kola” and in the assumed capacity presented himself to one Mamman Bukar as the operative handling “a case” purportedly against Bukar.

Count one of the charge reads: “That you, BABAKURA MUSTAPHA sometime in June, 2017 at Maiduguri, Borno State within the jurisdiction of this Honourable court, falsely impersonate a staff of the Economic and Financial Crimes Commission, EFCC, and in such assumed character; you presented yourself to Mamman Alh. Bukar, bearing a fictitious name Mr. Kola and pretended to be handling his case in Economic and Financial Crimes Commission and thereby committed an offence contrary to and punishable under section 132 Penal Code Law Cap 102,Laws of Borno State.”

Delivering judgment, Justice Kumaliya found him guilty and convicted him accordingly.

During allocotus, counsel for the convict pleaded with the court to temper Justice with mercy as the convict was a first time offender and had a family to cater for.

Sanusi on his part urged the court to invoke Section 365 of the CPC as to make the convict pay the sum of N80, 000 as compensation to the victim (PW1) in the case.

Justice Kumaliya sentenced the convict on the first count of the charge to one year imprisonment or an option of fine of N50,000. On count two, the convict was sentenced to seven years imprisonment without an option of fine.

“The convict should pay the sum of N100, 000 for impersonation and N800,000 to the complainant,” Justice Kumaliya ruled.

Tony Orilade
Ag. Head, Media & Publicity
30th November, 2018