VenturesNow

Shell may cough out $3.6bn to Nigerian government

A Federal High Court sitting in Lagos, yesterday, dismissed the suit by Shell Nigeria Exploration and Production Company Limited, challenging the imposing of $3.6billion fine on it by the Federal Government

Published

5 years ago

June 21, 2018

Africa News Watch

The fine had been imposed on Shell for the Bonga oil spill.

Trial judge, Justice Mojisola Olatoregun, resolved all the issues in the defendant’s favour and dismissed the suit.
Shell sued the National Oil Spill Detection and Response Agency, NOSDRA, challenging its powers to impose levies or fines over oil spills.

The plaintiff prayed the court to declare that NOSDRA cannot, in the light of Section 1, 3, 4, 5 and 6 of the 1999 Constitution, validly exercise any powers under Section 5, 6, 7 and 19 of the NOSDRA Act.

Shell, through its lawyer Chief Wole Olanipekun, SAN, argued that the sections’ provisions encroach on judicial powers vested exclusively in the courts.

The oil giant argued that it was the Federal High Court that is vested with the jurisdiction to determine liability and to assess, impose and direct the payment of any sum as penalty, damages or compensation in connection with an incidence of oil spillage, particularly the Bonga Oil Spill of December 20, 2011.

Shell urged the court to declare that the decision leading to the imposition of $3,600,191,206.00 on by NOSDRA was in breach of its right as enshrined in Section 36, 43 and 44 of the 1999 Constitution.

It also urged the court to nullify NOSDRA’s powers to impose such levies over oil spills.

But NOSDRA, through its counsel, Mr D. A. Awosika, argued that the cause of action arose on March 25, 2015 when it served Shell with notice of sanction over the Bonga Oil Spill.

Awosika contended that Shell was enjoined to exercise its right of litigation if it felt aggrieved by the letters within three months from March 25, 2015 and not beyond.

In her May 24 judgment, a copy of which was obtained

Wednesday, Justice Olatoregun held that NOSDRA acted in line with its powers and did not violate Shell’s rights in any manner.

“I found no conflict with the duties conferred on NOSDRA by law and the power of the court to adjudicate in this matter. I find no violation of the 1999 Constitution within these sections,” the judge held.
Justice Olatoregun further held that NOSDRA’s demand letters to Shell were not in conflict with Section 44 of the 1999 Constitution.

The judge said: “The plaintiff had notice and opportunity to fair hearing. The plaintiff ought to have had recourse to the court for the determination of its civil rights and a proper adjudication on the issues if it felt its rights were infringed or about to be infringed.

“I do not find the two letters ultra vires the duties and functions of the defendant.”

Click to comment

VenturesNow

New $700 million loan approved by World Bank for Nigeria

Published

11 hours ago

September 23, 2023

Ifeoluwa Dada

Amid its recent economic challenges, Nigeria has received approval from multilateral lender, World Bank for a fresh $700m loan to enhance adolescent girls’ learning and empowerment.

With the new loan, more money will be available for the Adolescent Girls Initiative for Learning and Empowerment, a project that is already underway.

The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, in January, disclosed that the country’s total debt stock may hit N77 trillion by the end of President Muhammadu Buhari’s administration on May 29, 2023

The World Bank, in a statement, said it had “approved additional financing of $700m for Nigeria to scale up the Adolescent Girls Initiative for Learning and Empowerment programme whose goal is to improve secondary education opportunities among girls in targeted states.

“The additional financing will scale up project activities from the current seven states to eleven additional states and increase the targeted beneficiaries to include out-of-school girls, those who are married, and those who have disabilities.”

The statement added, “In the seven AGILE programme implementing states – Borno, Ekiti, Kaduna, Kano, Katsina, Kebbi, and Plateau – the number of girls in secondary schools has increased from about 900,000 to over 1.6 million.

“Under the programme, over 5,000 classrooms have been renovated and over 250,000 eligible girls have received scholarships.

“The AGILE programme has supported the construction and rehabilitation of WASH facilities in secondary schools and the installation of computers and solar panels which make attending school more convenient and conducive for both girls and boys. Life skills, systems strengthening, and advocacy are other key aspects of the program which address social norms impeding girls’ education.

“Closing the gender disparities in economic empowerment by ensuring girls have access to education and skills is vital for Nigeria’s growth and economic prosperity,” said Shubham Chaudhuri, the World Bank’s country director for Nigeria

“Nigeria’s working population will soon be one of the youngest and largest around the world, which means that investing in adolescent girls is imperative when addressing overall economic prospects and growth.”

Despite the recent removal of fuel subsidies, Nigeria’s public finance is currently affected by dwindling oil prices and industrial-scale crude oil theft.

VenturesNow

South Korea eyes Nigerian Lithium as global battery demand rises

Published

2 days ago

September 22, 2023

Ifeoluwa Dada

Nigeria’s Ministry of Solid Minerals Development on Thursday revealed that the South Korean government had indicated interest in lithium deposits from Nigeria.

The Nigerian government engaged the South Korean government at the Seventh Korea-Africa Economic Co-operation Conference in Busan, South Korea, according to a statement issued by the ministry’s Deputy Director (Information), Alaba Balogun.

Officials from the Ministry of Solid Minerals Development and Oando Mining Company made up the Nigerian delegation at the event, while representatives from the Korean Institute of Geosciences and Mineral Resources and Korean Mines were also present.

A 2006 Memorandum of Understanding between Nigeria and South Korea on investments in the solid minerals sector was revised as part of the engagement, according to the statement.

It stated that the proposed revision to the 2006 MoU “include training of Nigerian mining professionals in Geochemistry, Geophysics, Ore Modelling, Mineral Processing, research, and exploration of critical minerals such as lithium, nickel, cobalt, manganese, and graphite.”

Lithium is a core resource used for the production of batteries. With increases in battery demand, electric vehicles will be a strong driver of lithium consumption in the next decade, and South Korea will be a top global producer of batteries.

The statement added, “KIGAM president, Dr Pyeong Koo-lee, offered to collaborate with Nigeria to explore the large deposits of lithium-bearing pegmatites.

“He said KIGAM has the best technology in lithium ore processing, adding that the beneficiation process can reduce the carbon to improve the grade of the ore.

“Vice President of the state-owned KOMIR, Dr Alex Kwon, expressed interest in overseas mining investment, adding that KOMIR provides technical and financial assistance and investment in the exploration and mining of solid minerals”, it added.

Considering the potential to export mineral resources to the rest of the globe and the need for diversification, the mining and quarrying sector is essential to Nigeria’s growth.

In general, it is claimed that Nigeria is endowed with around forty (40) different types of minerals, including marble, coal, iron ore, gold, silica, lead, zinc, tin ore, manganese, granite, laterite, limestone, among others.

A report by Statista said by 2030, the global demand for lithium is expected to surpass two million metric tons of lithium carbonate equivalent, more than doubling the demand forecast for 2025.