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35 years after, FG gives up on Malabu! Case not winnable – Malami
The Federal Government, is about to throw its hands into the air in the realisation that a 35-year-old battle to right the wrongs of the $1.7billion in the OPL 245, otherwise known as the Malabu Scandal, has been lost.
That is if it settles for the advice of Abubakar Malami, Attorney General of the Federation and Minister of Justice ((AGF-MoJ), who wants the court cases on the matter, which had within the period, taken the government through various courtrooms home and abroad to be terminated “because the prospects of a judicial victory are slim.”
TheCable reports that the advice came via a memo to President Muhammadu Buhari, where the Minister, was said to have suggested rather that the government, allowed the country enjoy the economic benefits of the controversial oil block while fossil fuels are still in vogue arguing that the dispute and associated litigation had brought negative economic consequences for Nigeria “particularly in terms of foreign exchange earnings, loss of Tax income and Royalty payments.”
OPL 245 is believed to be Nigeria’s most endowed oil block but its development has been stalled since Buhari came to power in 2015.
His administration has been pursuing a series of litigation home and abroad against Royal Dutch Shell, Eni/Nigeria Agip Exploration (NAE), Shell Nigeria Ultra Deep (SNUD) Ltd, and Shell Nigeria Exploration Company (SNEPCO) — as well as Mohammed Bello Adoke, former AGF, over allegations of fraud and corruption in the OPL 245 deal. They all deny the charges.
In 2011, Shell and ENI paid $1.1 billion to acquire 100 percent stake in OPL 245 after Malabu, the original allottee, relinquished its interest in the acreage — but foreign anti-corruption campaigners alleged that the transaction was shrouded in corruption.
The federal government pursued both criminal and civil cases and has lost in foreign jurisdictions but the prosecution has continued in Nigeria using the same evidence that failed abroad.
The cases in Nigeria are being prosecuted by the Economic and Financial Crimes Commission (EFCC).
‘A SERIES OF LOSSES’
In his memo dated 6 February 2023, the AGF reminded Buhari of the string of losses Nigeria has suffered over the years in trying to prove corruption and fraud in the transaction.
Malami wrote: “Your Excellency, recent developments, particularly the series of losses recorded in cases that arose from the facts of OPL 245 2011 Resolution Agreements in different jurisdictions, should be concerning. These losses include:
“I. Judgment of the UK Courts delivered on 22 May 2020 declining jurisdiction in a case filed by FGN against Shell/SNUD and ENI asking for compensation in the sum of $1.1 billion in relation to their conduct in the OPL 245 2011 Resolution Agreements;
“II. Judgment of the Italian Constitutional Court dated 17th March 2021, in the Prosecution of NAE in Milan, Italy for international corruption allegedly connected with OPL 245 2011 Resolution Agreements which was concluded in favour of ENI;
“III. Judgment delivered by the UK Court in June 2022, the FGN lost its $1.7 billion claim against JP Morgan Bank over transfers of proceeds from the sale of OPL 245 pursuant to the OPL 245 2011 Resolution Agreements.
“IV. The US Department of Justice previously investigated the OPL 245 2011 transaction and announced in October 2019 that it was closing the case.
“V. In April 2020, the US Securities and Exchange Commission also closed investigation into the controversial OPL 245 deal after it could not prove fraud or corruption.”
Malami noted that upon the conclusion of the case in Milan in March 2021, Buhari — with advice from the Nigerian Upstream Petroleum Resources Commission (NUPRC) and the office of the AGF — granted consent to convert the oil prospecting licence (OPL) to an oil mining lease (OML) for NAE to commence production.
He recalled that Timi Sylva, then-minister of state for petroleum resources, wrote to ENI in May 2022 to convey Nigeria’s readiness to resolve all the issues but the assurance “remains ineffectual as long as Charge CR: 151/2020 against ENI in Nigeria being prosecuted by EFCC remains in Court”.
‘UNFRIENDLY INVESTMENT DESTINATION’
In his assessment of the current situation, Malami wrote: “In sum, Mr. President is invited to note that:
“(a) OPL 245 is the most priced Oil block in the country.
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“(b) FGN has gained certain benefits from SNUD/NAE/ENI in respect of OPL 245. In particular, SNUD/NAE/ENI have made payments to FGN and also expended resources thereon including:
“I. Cumulative total of $210 million Signature Bonus.
“II. Approximately $500 million committed by SNUD into the development and de-risking of OPL 245.
“III. Payment of $1,092,040,000.00 to Malabu as consideration for the OPL 245 2011 Resolution Agreements.
“IV. Litigation cost of prosecuting the several Suits connected with the subject matter in various jurisdictions.
“(c) By allowing SNUD alter its position in the sums stated in (b) (I) to (IV) above, and without getting a corresponding value for same over time through FGN’s Policy summersault, litigation and disputes, Nigeria could reasonably be portrayed as an unfriendly investment destination whose credibility is suspect.
“(d) FGN’s actions which denied SNUD/ENI/NAE the opportunity to exploit OPL 245 led to ENI’s International Arbitral Proceedings against FGN claiming $1.3 billion plus interest and arbitration costs. (No: Case No. ARB/20/41/).
“(e) The controversies and litigations, particularly the pending charge No CR/ 151/2020 filed by the EFCC against NAE/ENI and others has placed encumbrance on the ability of FGN to enjoy the financial benefits associated with the exploration OPL 245 with attendant economic losses to the Nation.
“(f) Judicial determinations in Milan & UK, and administrative decisions in the USA, all favourable to ENI/NAE, together with the Consent Judgment earlier entered to which FGN was a Party makes it a more beneficial approach for FGN to consider settlement of charge No: CR/151/2020 as the best option in the circumstances.
“(g) Whilst the dispute and associated litigation cum Arbitration lasted, neither SNUD/NAE nor even FGN would exploit OPL 245 with negative economic consequences for FGN and the people of Nigeria particularly in terms of foreign exchange earnings, loss of Tax income and Royalty payments.
“(h) A careful review and evaluation of the Charge No CR: 151/2020 pending at the FCT High Court, particularly the three counts against ENI/NAE, SNUD & SNEPCO leads to an almost inevitable conclusion that the Charge does not disclose sufficient evidence to excite any prospect of success in the case.
“(i) It is in the best interest of the Federal Government and Peoples of Nigeria, to resolve all issues connected with OPL 245, especially the commercial issues, by discontinuing the pending charge No CR/151/020, and to expedite the process of converting the OPL to an OML for ENI/SNEPCO thereby taking advantage of the fast-disappearing opportunities in the oil exploration industry, and attracting other high-net worth investors that will provide the resources much needed in the Oil industry and by extension our economy at this time.
“(j) The above conclusion is consistent with my earlier letter dated 27th September 2017 ref: DPPA/FMPR/198/ 17, which position was supported and re-established by Dr. Emmanuel Ibe Kachikwu and Chief Timipre Sylva in their letters dated 13th December 2017 ref: MPR/STAHMS/S.26/18, and 27th May 2022 respectively.”
PRAYERS TO BUHARI
The AGF asked the president to allow the cases to be terminated for progress to be made.
He wrote: “In view of the foregoing, and if deemed appropriate, Mr. President may wish to:
“a) Direct the discontinuation of counts 2, 3, & 13 in Charge No CR: 151/2020 pending at the FCT High Court particularly the counts against ENI/NAE, SNUD & SNEPCO.
“b) Direct the total discontinuation of all investigations by all Law Enforcement Agencies, particularly, EFCC, involving ENI/NAE, SNUD & SNEPCO in relation to OPL 245.
“c) Direct the NUPRC and any other relevant Agencies to expedite the conversion of OPL 245 to an OML in furtherance of the Ministerial Consent granted via the letter dated 16th May 2022 ref PRES/88/MPR/90.
“d) Approve the settlement of all Civil cases between FGN and ENI/NAE, SNUD & SNEPCO in relation to OPL 245.
“e) Approve that the Attorney-General of the Federation and Minister of Justice exercise his powers under Section 174(1)(c) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) to discontinue the case against NAE/ENI, SNUD & SNEPCO PROVIDED NAE/ENI, SNUD & SNEPCO equally agree to discontinue the Arbitration Proceedings against FGN on the grounds that FGN’s delay in converting the OPL 245 to an OML is a breach of Nigeria’s obligations under the relevant Treaties, and to hold FGN harmless in respect of all claims concerning OPL 245.”
THE MOHAMMED ABACHA CASE
TheCable understands that while Buhari may be disposed to resolving the issues before leaving office, the fate of Mohammed Abacha remains an issue.
As previously reported by TheCable, the final resolution depends on a proposal by the EFCC for a compensation to Abacha by ENI.
Abacha is laying claim to the ownership of Malabu Oil & Gas Ltd, the company awarded OPL 245 in 1998 by Sani Abacha, his father and then-military head of state.
He alleged that the ownership documents of the company were illegally altered, thereby denying him benefits from the $1.1 billion paid by Shell and ENI to acquire Malabu’s interest in the oil block.
The EFCC objected to the proposal to convert the OPL to OML and for the court case to be discontinued, saying it “did not consider the interest of the actual shareholders of the Malabu Oil and Gas Limited (Mohammed Sani Abacha and Pecos Energy Limited) culminating in the various litigations regarding OPL 245. This action has globally undermined the image of the Federal Republic of Nigeria”.
TheCable learnt that EFCC is proposing that ENI should set aside $500 million from the proceeds of production to compensate Abacha.
In a case filed in court by the EFCC against Malabu, Shell, Eni, Adoke, Aliyu Abubakar, Etete, and Rasky Gbinigie (Malabu’s company secretary), the anti-graft is alleging that they colluded to remove Abacha’s name as a director of Malabu.
According to reports, a man named “Mohammed Sani” originally had 50 percent in the company, with “Kweku Amafegha”, believed to be a pseudonym for Etete, owning 30 percent; and Wabi Hassan, the wife of Hassan Adamu, Nigeria’s then-ambassador to the US, was credited with owning 20 percent.
Mohammed Abacha, who is EFCC’s key witness, told the court that he was the “Mohammed Sani” but admitted that he did not pay for the shares either in cash or by any other means.
The case is ongoing.
“Nothing must happen to Peter Obi. An injury to one is an injury to all. When one opposition leader is intimidated, every opposition voice is diminished,” came the immediate reaction of Atiku Abubakar candidate of the African Democratic Congress (ADC), in the 2027 presidential election on Thursday.
It was a day Atiku, who came second in the 2023 election and Obi, third, in the declaration made by the Independent National Electoral Commission (INEC), also asked for the release of Nasir el-Rufai, former governor of Kaduna, warning that democracy is threatened when opposition figures are intimidated.
Obi, Governor of Anambra State between 2006 to 2014, had accused the federal government of deliberately frustrating his means of livelihood and targeting opposition figures, while appearing on #WithChude podcast, a programme hosted by Chude Jidonwo, a popular Nigerian social media host.
On the same Tuesday, Obi’s outing broke on social media, where he claimed that the way the Tinubu government was pursuing him, he was not sure of making it to the 2027 election alive, the family of the former Kaduna State Governor, also came publicly to describe stark details of what the family head, currently in detention since February this year, has been facing.
Conveying his distaste on the two situations through, Phrank Shaibu, his spokesman, Atiku, Nigeria’s Vice President between 1999 and 2007, added: “When one citizen begins to fear because of his political beliefs, democracy itself becomes the casualty.”
In a quick riposte to the scant regard, Aso Rock seemed to have placed on Obi’s fears, the former VP, said: “The Presidency must understand that democratic leadership demands composure, not contempt. When a citizen, particularly an opposition figure, voices concerns about the state of the nation or his personal safety, the first duty of government is to reassure through statesmanship, facts and responsible conduct—not through insults.
“Democracies are strengthened by reasoned engagement, not by invective. A government that answers every criticism with abuse projects insecurity, not confidence. The opposition is not the enemy of Nigeria.
“Poverty is the enemy. Hunger is the enemy. Insecurity is the enemy. Corruption is the enemy. Kidnapping is the enemy. The daily bloodletting across our communities is the enemy. A government that devotes more energy to attacking its critics than confronting these existential challenges has confused political survival with the purpose of governance. There are schoolchildren and teachers still waiting to be reunited with their families. There are countless innocent Nigerians languishing in the camps of kidnappers,” he said.
“These are the emergencies that deserve the full machinery of government—not endless political sparring with opposition figures. The Federal Government must devote the same urgency it applies to political communication to rescuing kidnapped Nigerians and restoring public confidence in national security.”
Regarding the plight of el-Rufai, Atiku stated: “The continued detention of Mallam Nasir El-Rufai has generated widespread public concern. Every Nigerian, irrespective of political affiliation, is entitled to due process, equal protection under the law and the presumption of innocence until proven guilty by a competent court. Justice must never create the appearance of selective application.
“Public confidence is not restored through insults or propaganda. It is restored through openness, accountability and the courage to answer legitimate questions,” he said.
“Governments earn trust by confronting controversy with facts, strengthening institutions and demonstrating that no one is above scrutiny. Our elders say: ‘When the drums of injustice beat for your neighbour, do not dance, for tomorrow they may beat for you. Every Nigerian, regardless of political affiliation, has a stake in defending the democratic space. Release Mallam Nasir El-Rufai.
“Bring home every abducted schoolchild, every teacher and every innocent Nigerian still languishing in the hands of kidnappers.
“Stop chasing political opponents and start confronting the crises that are bleeding our nation. History will not remember how fiercely a government fought its critics.
“It will remember whether it protected its citizens, upheld justice, rescued the vulnerable and preserved the democracy entrusted to its care.”
“They apologised to me privately. I said they should put it on social media. They said they will not put it on social media, it will affect their credibility, because it’s not just them, but their other programmers at the Al Jazeera network too.”
These were the words of Daniel Bwala, while giving further insight into what has transpired along the line since his controversial interview with Mehdi Hasan of Al Jazeera, a global television network in March 2026, stating that the station privately apologised to him.
Bwala, who appeared on The Morayo Show, a private talk-show programme, hosted by Morayo Afolabi-Brown, a popular television presenter, however said because both Mehdi and Al Jazeera, refused to make the apology public, he was prompted him to instruct his lawyers in England to sue for defamation.
Clips on the controversial outing in which Bwala, spokesman for the campaign of Atiku Abubakar during his presidential bid in 2023, were in the public domain for several weeks after where a groundswell of commentators believed his performance was not only underwhelming, but he was outrightly disgraced.
He added: “The substance of the apology was that they should have told me that part of what they discussed with me was a talking point, that they were also going to interrogate me on my credibility for supporting the person I had attacked before.
“By their own ethics, they ought to have told me that, but they said they were sorry they didn’t. If you’re bold, if you call yourself a journalist, a fact-checker, you run your programme live and let people judge live.
“If you’re thinking straight, that’s what you’d do. You took creative control of the programme. You made a recorded programme. Ethics demanded you publish it exactly as it was recorded.”
Informing that the programme ran for one hour and 30 minutes but Al Jazeera published only 49 minutes, he accused the network of skewing the footage in Hasan’s favour, adding: “The deeper point is that they cut out the parts where I was fact-checking him and the crowd was clapping for me, and instead kept the parts where he was speaking and people were clapping for him. He’d ask me a question, I’d deny it, then he’d play the old clip. We call that ‘cut and joined’ in media. After doing that, which amounts to a smear campaign, he didn’t give me the chance to react to it.
“Instead, he let it appear that I was simply asked a question, denied it, was shown the clip, denied it again, was shown another clip, and denied it again. He removed that part, because if he’d left it in, anyone watching would understand that I had already answered the question upfront, and that my later denials were a response to his repeated bringing it up. That’s where the unethical conduct of a professional issue arose.
“When they apologised, I said no, put it on social media. They refused. So, I instructed my lawyers in England to go to court. The case is currently in court. Because my advisers in England said it’s defamation of character.”
More successes are being recorded by Nigerian forces trying to rout out terrorist in parts of the country, with emerging reports indicating that the perpetrators are currently running scared from the hot onslaughts they are getting from the operatives.
Channels Television, is quoting military authorities at the Operation Hadin kai (OPHK) conducting military blitzkrieg against the terrorists in the North East as saying that the troops received six Islamic State of West African Province (ISWAP), one of the major terrorist groups operating in the area, who surrendered alongside their families, at the 192 Battalion (Main) Sector 1 of the body.
Quoting a statement on Wednesday by Mohammed Goni, spokesman of the military operation, with headquarters in Maiduguri, Borno State, the report, said that among the items recovered from the terrorists and their families included a cumulative sum of more than N1.5 million, two Tecno mobile phones, and other items.
Th statement, added that troops of 115 Task Force Battalion, while conducting ongoing search and rescue operations in Askira/Uba Local Government Area of Borno State, on July 7, rescued two additional abductees from a terrorist hideout, where they also recovered cash of N1.2 million suspected to be proceeds of criminal activities, food items, and other logistics believed to have supported terrorist operations.
The rescued victims have since been evacuated to a secure location where they are receiving appropriate medical care and psychosocial support, the report said, adding that during the same period, the troops noted that it contained a coordinated attack by ISWAP terrorists in Borno, and one of the soldiers was killed.
“Although the insurgents briefly exploited a section of the base’s defensive perimeter during the intense firefight, the troops rapidly regrouped, mounted a determined counter-offensive and decisively expelled the attackers, inflicting significant casualties and forcing the surviving terrorists to flee with varying degrees of gunshot wounds.
“Regrettably, one gallant soldier paid the supreme price, while two gun-trucks and some combat enablers sustained damage during the engagement. The situation at FOB Logomani remains firmly under the control of Operation HADIN KAI troops, with reinforcements deployed, exploitation operations ongoing and additional measures being implemented to further strengthen the defensive resilience of the location.”
Detailing how troops of 232 Battalion apprehended a notorious criminal in Gombi Local Government Area of Adamawa State, the statement, said: “Follow-up exploitation of the arrest led to the recovery of one AK-47 rifle, two magazines, and twenty-eight rounds of 7.62mm special ammunition.
“The suspect and recovered items are currently in military custody, while further investigations are underway to identify and apprehend other members of the criminal network.”
Similarly, the statement said troops of the 149 Battalion arrested two suspected terrorist logistics suppliers in the Mobbar Local Government Area of Borno State.
The recovered items include cash sums, a Volkswagen Golf vehicle, construction materials, household items, and other supplies suspected to have been destined for terrorist elements.
The suspects are currently undergoing interrogation, while the recovered items remain in military custody as investigations continue.
As part of ongoing offensive operations, troops of 24 Task Force Brigade, in conjunction with members of the Civilian Joint Task Force, conducted a clearance operation on known terrorist enclaves around Wulgo.
During the operation, the troops said they exploited the terrorists’ hasty withdrawal and recovered a sack containing assorted illicit drugs abandoned by the fleeing insurgents.
“The recovery further underscores the sustained pressure being mounted on terrorist elements, denying them freedom of movement and disrupting their operational capabilities.”
Relatedly, the troops apprehended a suspected BHT/ISWAP logistics supplier at the Molai checkpoint in possession of large quantities of medical supplies without due clearance. The suspect and items recovered are in custody for further interrogation.
Again, in Sector 2 Area of Responsibility, Troops of 233 Tank Battalion, in conjunction with local hunters, intercepted and arrested a suspected BHT/ISWAP terrorist logistics supplier from Ngirya village of Tarmuwa LGA with five motorcycle tires. The suspect and items are in military custody for investigation.
“These latest operational gains underscore the effectiveness of sustained offensive operations, actionable intelligence and the seamless collaboration among security agencies and auxiliary forces in dismantling terrorist logistics networks, disrupting criminal activities and protecting vulnerable communities across the North East”, the statement added.
Headquarters Operation HADIN KAI assured the public that ongoing search and rescue operations will continue with unwavering resolve until every abducted person is accounted for and safely reunited with their families.
“The Theatre Command also issues a stern warning to individuals involved in supplying food, fuel, construction materials, transportation or any other form of logistics to terrorist groups to immediately desist. Anyone found aiding, abetting or collaborating with terrorist elements, directly or indirectly, will be identified, apprehended and prosecuted in accordance with the law.”
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