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Malabu faction sues FG over OPL 245 split, demands N1 trillion in damages

Published

4 months ago

May 26, 2026

A faction of Malabu Oil & Gas Ltd has filed a N1 trillion suit against the federal government over the splitting of the Oil Prospecting Licence (OPL) 245.

In the suit filed in the firm’s name through its lawyer, Reuben Atabo, a Senior Advocate of Nigeria (SAN), the plaintiff sought an order from Judge Mohammed Umar of the Federal High Court in Abuja to quash the government’s conversion of OPL 245 to OML 245.

Malabu sued the President, the Attorney-General of the Federation (AGF) and the Minister of Petroleum Resources in the suit marked FHC/ABJ/CS/871/2026.

In a motion on notice filed on 25 May by Mr Atabo, the company argued that the conversion of OPL 245 to OML 245 was done while several cases were pending at the Federal High Court up to the Supreme Court.

It therefore sought a declaration that splitting OPL 245 into four assets—to be managed by Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited through the OPL 245 Resolution Agreement signed around 5 March—was unlawful.

Malabu also seeks an order awarding N1 trillion in damages against the respondents jointly and severally.

The company said the fine was for unlawful interference with its interests in OPL 245 and for actions that exceed the limits of the Petroleum Industry Act 2021.

In an affidavit in support of the motion, a shareholder and director, Alhaji Mohammed Sani Abacha, detailed the company’s history and its prolonged legal battle over OPL 245.

The judge set 11 June for the hearing.

Last Thursday (22 May), Mr Umar granted leave to Malabu Oil & Gas Ltd to apply for a judicial review, to seek declarations and injunctions against the executive action of the federal government to split OPL 245.

The judge, in a ruling, held that the motion ex-parte, moved by Atabo, in respect of the relief sought, was meritorious.

The suit came less than two months after President Bola Tinubu on 5 March announced the government had resolved a decades-long dispute over Oil Prospecting Licence (OPL) 245, one of Nigeria’s most commercially significant deepwater oil blocks.

At the time, the presidency said the agreement paves the way for development that could add approximately 150,000 barrels per day to Nigeria’s production capacity.

Although details of the agreement are still sketchy and were not made public, the president’s office described it as a “historic settlement” that would unlock the development of one of Nigeria’s most strategically important deepwater resources.

On Thursday, Malabu in its suit alleged that the Federal Government split OPL 245 into four separate assets and reassigned them to Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Limited, Nigerian Agip Exploration Company Limited, and Nigerian National Petroleum Company (NNPC) Limited.

According to Malabu, the reallocation was carried out through the OPL 245 Resolution Agreement executed on or about 5 March.

The firm further alleged that the action was taken without the consent or approval of its directors.

The matter is expected to return to court on 11 June for further proceedings.

Background

OPL 245 was originally awarded to Malabu Oil and Gas by the regime of General Sani Abacha in 1998.

Under the terms of the award, Malabu — a briefcase company set up by Mr Abacha’s son and the then petroleum minister, Dan Etete, in controversial circumstances — was required to develop the block in partnership with an international technical partner and pay a signature bonus of $20 million.

The company paid only $2 million before entering into a joint operation agreement with Shell Nigeria Ultra Deep Limited (SNUD). Malabu received its operating licence in April 2001, but it was revoked three months later, in July 2001.

The administration of former President Olusegun Obasanjo subsequently invited ExxonMobil and Shell — Malabu’s technical partner — to bid for OPL 245 in partnership with the Nigerian National Petroleum Corporation (NNPC). Shell won the bid and began work on the block.

Malabu accused Shell of conniving with the government to seize the block and petitioned the House of Representatives, which directed the federal government to re-award Block 245 to the company.

Malabu also approached the Federal High Court in Abuja, but the suit was struck out. While an appeal was pending, the then Minister of State for Petroleum, Edmund Daukoru, sought an out-of-court settlement on behalf of the federal government.

The block’s association with Mr Etete — whom the federal government alleged had awarded the block to himself while in office — inflamed opinion in the Niger Delta, where communities demanded a full audit of oil block allocations and disclosure of the ethnic identities of their owners.

The Obasanjo government eventually reversed course, reclaimed OPL 245 from Shell, and re-awarded it to Malabu on the condition that the company pay a new signature bonus of $210 million, in addition to the $2 million earlier paid in 1998.

Malabu paid the sum and withdrew its court cases, but the settlement created another dispute.

Shell filed for arbitration at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C., and also instituted proceedings at the Federal High Court in Abuja. SNUD, which had entered into a Production Sharing Contract with the NNPC in 2002, had paid $1 million of the $210 million signature bonus and held the remaining $209 million in an escrow account with JP Morgan pending resolution of the dispute.

Shell sought compensation and damages exceeding $2 billion, citing costs incurred in de-risking the block.

Several settlement efforts followed, though none produced a definitive outcome. However, a Terms of Settlement Framework was adopted in 2006.

In April 2011, under the Goodluck Jonathan administration, then Attorney-General Mohammed Adoke brokered a Resolution Agreement.

Under the agreement signed on 29 April 2011, Malabu agreed to waive all claims to OPL 245 in exchange for compensation from the federal government. Shell, in turn, agreed to withdraw all suits against the government and to pay, through the federal government, the sum of $1.092 billion as full and final settlement of Malabu’s claims. The block would then revert to Shell and its new partner, Italian oil company Eni.

In June 2013, the matter was formally concluded on those terms, and presidential approval was granted for the payment of $1.092 billion to Malabu — now controlled by Mr Etete after scheming out the Abachas — from the federal government’s escrow account at JP Morgan in London.

Italian trial and acquittals

The deal later attracted international scrutiny. Italian prosecutors alleged that most of the $1.3 billion purchase price for OPL 245 had been siphoned off to politicians and intermediaries.

PREMIUM TIMES reported that about half of the funds were transferred to the accounts of controversial businessman Abubakar Aliyu, believed to be a front for senior government officials.

Shell and Eni, along with several of their former and current executives — including Eni CEO Claudio Descalzi — were tried in Italy. All were acquitted in 2021 after denying any wrongdoing.

In Nigeria, Mr Adoke was later named in the $1.1 billion scandal. The Economic and Financial Crimes Commission (EFCC) accused him of benefitting fraudulently from the deal he had helped broker as Attorney-General.

He was arraigned before the FCT High Court in Abuja in February 2020 on a 40-count amended charge of bribery and related offences alongside Mr Aliyu, Rasky Gbinigie, Malabu Oil and Gas Limited, Nigeria Agip Exploration Limited, Shell Nigeria Extra Deep Limited, and Shell Nigeria Exploration Production Company Limited.

The EFCC later admitted it lacked sufficient evidence against Mr Adoke, and the court dismissed the charges. In a separate case at the Federal High Court, the EFCC accused him of laundering N300 million allegedly derived from bribery. He was also discharged and acquitted in that case.

In his book (The Burden of Service) published last year, Mr Adoke described the OPL 245 litigation as “as lucrative as OPL 245 itself for lawyers and their allies” during the Buhari administration. He characterised it as “a monumental waste of resources.”

Mr Adoke has continued to deny any wrongdoing, maintaining that no federal government money went missing and that those who brokered the 2011 settlement should be credited for civic patriotism, having saved the government from financial embarrassment arising from mismanagement of the original award process.

Following the announcement of a resolution by Mr Tinubu, Mr Adoke called on the Nigerian government to offer him an “unreserved apology” over what he described as years of persecution and humiliation linked to the controversial OPL 245 oil block deal.

(NAN)

Related Topics:damages demands faction Malabu OPL split sues trillion

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NANS Endorses Insurance Industry Reforms, Condemns moves to Derail Recapitalisation

Published

6 hours ago

October 1, 2026

PlateauReports

BY NKECHI NAECHE-ESEZOBOR—The National Association of Nigerian Students (NANS), on Wednesday declared its support for National Insurance Commission, (NAICOM), and the ongoing transformation of Nigeria’s insurance industry, while condemning what it described as attempts to derail the sector’s recapitalisation exercise.

According to statement signed by its President, Comrade Akinteye Babatunde Afeez, said the association said it stands with the Commission and the reforms introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The statement reads as follows:

The National Association of Nigerian Students (NANS) National Secretariat, the umbrella body representing over 40.1 Million Nigerian Students across universities, polytechnics, and colleges of education, hereby issues this statement in support of the transformative reforms currently reshaping Nigeria’s insurance industry.
NANS recognizes the strategic importance of a strong, modern, and resilient insurance sector to national economic development and commends the leadership of the Federal Government under President Bola Ahmed Tinubu GCFR, for initiating bold economic reforms aimed at positioning Nigeria for sustainable growth and the realization of its $1 trillion economy aspiration.
We equally commend the leadership of NAICOM under the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, and the Governing Board chaired by Hajia Halima Kyari, for their commitment to implementing far-reaching reforms that are restoring confidence, improving consumer protection, strengthening industry capacity, and promoting greater public trust in the insurance sector.

Today, we speak not merely as students but as stakeholders in Nigeria’s future. We cannot remain silent while certain unpatriotic elements seek to undermine reforms that hold significant promise for economic transformation, youth empowerment, consumer protection, and national development.

NANS joins all well-meaning Nigerians in celebrating President Bola Ahmed Tinubu GCFR’s historic assent to the Nigerian Insurance Industry Reform Act (NIIRA) on 31 July 2025, a historic legislation that modernized Nigeria’s insurance regulatory framework and replaced obsolete legal provisions with a comprehensive regime suited for a modern economy.
The NIIRA 2025 represents one of the most significant legislative interventions in Nigeria’s financial services sector in recent history.

For Nigerian students, the law opens new opportunities for financial inclusion, entrepreneurship, employment, and career development within a sector that has historically been underutilized despite its enormous economic potential.
NANS therefore fully endorses the objectives and implementation of the NIIRA 2025 and commends Mr. President for providing the legal foundation upon which the ongoing transformation of the insurance sector is being built.

*SUPPORT FOR THE RECAPITALISATION OF THE INSURANCE INDUSTRY*

One of the most important reforms emanating from NIIRA 2025 is the recapitalisation of the insurance industry.
For decades, insufficient capitalization limited the capacity of many insurance operators to meet growing market demands and support large-scale economic activities. The recapitalisation exercise was therefore not merely a regulatory requirement but a strategic intervention designed to strengthen insurers and ensure prompt settlement of legitimate claims.

NANS strongly supports the successful implementation of the recapitalisation exercise by NAICOM and commends the insurance companies that complied with the new capital requirements in furtherance of industry stability and growth.

No modern economy can thrive without a vibrant insurance industry capable of protecting investments, facilitating business continuity, absorbing risks, supporting infrastructure development, and promoting financial confidence across all sectors.
The recapitalisation exercise is therefore a critical pillar of Nigeria’s journey toward becoming a trillion-dollar economy and deserves the support of all patriotic Nigerians.

*COMMENDATION FOR NAICOM’S INVESTMENT IN TERTIARY EDUCATION*

NANS expresses profound appreciation to NAICOM for its longstanding support for tertiary education through the Insurance Education Fund and related interventions.
Over the years, these initiatives have contributed to the development of critical infrastructure in universities, polytechnics, and colleges of education, including ICT centres, laboratories, and academic facilities that directly benefit Nigerian students.
Such investments reflect NAICOM’s broader commitment to human capital development and the future of the nation’s youth.

As beneficiaries of these interventions, Nigerian students recognize and appreciate the positive impact these investments continue to make across institutions of higher learning nationwide.

*CONDEMNATION OF ATTEMPTS TO UNDERMINE INSURANCE SECTOR REFORMS*

It is deeply concerning that at a time when the Nigerian insurance industry is recording unprecedented reforms and achievements, certain individuals and groups have embarked on campaigns aimed at discrediting the regulator, undermining the recapitalisation exercise that have attracted widespread commendation from all stakeholders.

NANS views these actions as deliberate attempts to derail the progress being made within the sector and ultimately frustrate the reform agenda of President Bola Ahmed Tinubu.
We are particularly disturbed by calls for the removal of the leadership of NAICOM despite the significant progress achieved in strengthening regulation, enhancing consumer protection, improving market confidence, and implementing critical reforms that have long been demanded by stakeholders.
Such calls are neither constructive nor patriotic.

NANS therefore urges Nigerians to be vigilant and reject misinformation, sensational allegations, and campaigns intended to undermine institutions that are working in the national interest.
As a responsible, proactive and principles organization, NANS has independently reviewed publicly available information concerning NAICOM’s operations, reforms, and achievements.

Based on our findings, we have found no credible basis for the allegations being promoted by such groups.
On the contrary, available evidence points to a regulator implementing statutory reforms in accordance with its mandate.
We therefore reject any attempt to recruit Nigerian students into campaigns of calumny, misinformation or institutional sabotage.

Let it be known that Nigerian students are not instruments for advancing narrow interests against national development. We stand firmly on the side of truth, transparency, reform, and progress.

*COMMENDATION FOR IMPROVED CLAIMS SETTLEMENT AND CONSUMER PROTECTION*

NANS commends NAICOM’s firm stance on prompt claims settlement and its “zero-tolerance approach toward the non-payment of genuine claims.”
The Commission’s consistent emphasis on consumer protection has contributed significantly to rebuilding confidence in the industry and improving public perception of insurance as a reliable financial safeguard.

*THE INSURANCE POLICYHOLDERS PROTECTION FUND: A GAME-CHANGING INITIATIVE*

NANS applauds the establishment of the Insurance Policyholders Protection Fund (IPPF), one of the landmark innovations introduced under the NIIRA 2025.
This initiative demonstrates a clear commitment to ensuring that ordinary Nigerians, including students, youths, and vulnerable consumers, do not lose their legitimate entitlements due to circumstances beyond their control.

We encourage NAICOM to intensify public awareness campaigns so that Nigerians fully understand the protections available to them under the new insurance regime.

*NANS’ UNWAVERING COMMITMENT TO THE REFORM AGENDA*

NANS hereby reaffirms its unwavering support for the ongoing transformation of Nigeria’s insurance industry. We recognize that these reforms are interconnected components of a bold agenda designed to strengthen the insurance sector and contribute meaningfully to national development.

Accordingly, NANS pledges to:
• Mobilize Nigerian students in support of insurance awareness and financial literacy initiatives.
• Promote insurance as a viable career pathway for graduates and young professionals.
• Encourage students participation in youth-focused insurance development programmes.
• Advocate for the protection and expansion of initiatives that support education and youth empowerment.
• Support reforms that strengthen consumer protection, transparency, accountability, and institutional excellence.

*CALL TO THE FEDERAL GOVERNMENT AND ALL NIGERIANS*

NANS calls on President Bola Ahmed Tinubu, the Federal Government, the National Assembly, industry stakeholders, the media, and all well-meaning Nigerians to continue supporting the Insurance industry’s reform agenda. These transformations are not merely a regulatory exercise. It is a national economic imperative that has the potential to unlock investment, create jobs, enhance financial security, promote economic stability, and accelerate Nigeria’s march toward sustainable prosperity.

A strong insurance sector is a foundation for a strong economy. A strong economy is a pathway to reduced poverty, increased opportunities, and a better future for Nigerian youths.

We therefore urge all Nigerians to reject divisive narratives, support constructive reforms, and stand firmly behind initiatives that advance the national interest.

CONCLUSION
The National Association of Nigerian Students (NANS) National Headquarters stands firmly with NAICOM. We stand with every Nigerian student, every policyholder, every investor, and every citizen who desires a transparent, efficient, and globally competitive insurance industry.

We shall continue to support genuine reforms, defend institutions that are delivering measurable results, and oppose all attempts to undermine progress for personal or sectional interests.

The transformation of Nigeria’s insurance sector is a transformation that serves the interests of present and future generations. It must be protected, sustained, and driven to its logical conclusion.

The post NANS Endorses Insurance Industry Reforms, Condemns moves to Derail Recapitalisation appeared first on Business Today NG.

Business

Dangote, Ruto to launch $16 billion Kenya refinery amid land protests

Published

14 hours ago

September 30, 2026

PlateauReports

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Africa’s richest man and president/CEO of Dangote Industries Limited, Aliko Dangote, and Kenya’s President, William Ruto, are set to break ground on a $16 billion oil refinery in Lamu County, on Kenya’s northern coast.

This is against the backdrop of protests and legal challenges over land acquisition and compensation.

The proposed Dangote East Africa Petroleum Refinery has raised concerns among residents, activists and economic experts over its potential environmental and social impacts, particularly the displacement of communities and the adequacy of compensation for affected landowners.

Ahead of the groundbreaking ceremony, some residents took to the streets to demand better compensation for land earmarked for the project.

Farmers and residents of Chandavai have also filed a lawsuit alleging forced eviction and property destruction without adequate compensation or a proper resettlement plan.

The petitioners argued that the land designated for the refinery is part of their ancestral heritage and provides essential livelihoods for their families.

In response to the legal challenge, the Malindi Environment and Land Court ordered a temporary halt to construction activities pending a hearing.

Environmental activists have also questioned whether the project complied with mandatory public participation requirements and comprehensive environmental impact assessments under Kenyan law.

According to the BBC, Mr Dangote has dismissed the protests as manoeuvres by local marketers and international players, while insisting the refinery would proceed as planned and be ready by 2030.

In an interview with the BBC’s Focus on Africa programme, Mr Dangote disputed claims of inadequate compensation, saying his company had acquired only the portion of land it required from the area made available by the government.

“To come and say some people are demonstrating, demonstrating about what? Have you ever seen people demonstrating against themselves in terms of development?” he asked, indicating that the protests would not derail the project.

Mr Dangote said the refinery would create about 60,000 jobs at the peak of construction, with the benefits extending beyond those directly employed by the project.

“Are we going to bring robots? Of course, the people will benefit,” the BBC quoted him as saying.

The proposed refinery is expected to process 700,000 barrels of crude oil per day, making it one of Africa’s largest refining facilities and the biggest industrial project of its kind in East Africa.

The project is expected to cost between $15 billion and $16 billion and take about three years to construct. It is modelled after Dangote’s 650,000-barrel-per-day refinery in Lagos, Nigeria.

Once completed, the facility is expected to supply refined petroleum products to Kenya, South Sudan, Uganda, Burundi, and the Democratic Republic of the Congo.

The proposed investment has also triggered questions about why Kenya was selected for the refinery, given that it is not an oil-producing country. Some critics have suggested that Tanzania or Uganda would be more suitable locations, particularly as both countries are advancing plans to export crude oil through the East African Crude Oil Pipeline.

However, Kenya’s Energy and Petroleum Minister, Opiyo Wandayi, told the BBC that the refinery would not depend exclusively on crude oil produced within the region.

“Refineries get crude oil from the market. And the market is open,” he said.

Mr Dangote also defended the choice of location, citing Singapore as an example of a country that has developed a substantial refining industry despite having no domestic crude oil production.

“Singapore doesn’t produce a single drop of oil, yet they have a lot of refineries,” he said.

The refinery will also feature a 1,000-megawatt power plant designed to provide electricity for its operations and support other industries expected to emerge in the area.

Mr Dangote has identified unreliable electricity supply as a major obstacle to industrialisation in Africa, particularly in resource-rich countries that export raw materials instead of processing them locally.

READ ALSO: Dangote Refinery a masterpiece of science, engineering, art – Kenyan President

The Nigerian industrialist has about $50 billion worth of projects in the pipeline, including plans to develop 10,000 megawatts of power generation capacity across Africa by 2030, with the possibility of doubling the target depending on demand.

The proposed Lamu power plant is expected to support the refinery’s operations while providing electricity for other industrial activities in the region.

The Lamu project comes as Mr Dangote expands his investments across Africa, following the commissioning of his 650,000-barrel-per-day refinery in Lagos, which can supply petroleum products to domestic and international markets.

The proposed Kenyan refinery is also expected to reduce the region’s dependence on imported petroleum products. East African countries currently rely heavily on fuel imports, much of which comes from the Middle East, exposing them to global supply disruptions and fluctuations in crude oil prices.

The refinery’s development, however, still depends on resolving land acquisition disputes, compensation concerns, and environmental issues raised by affected communities and campaigners.