Multi-Billion Dollar Contract Scandal: Private Company Donnington Drags Tinubu-led Nigerian Government To International Arbitration
SaharaReporters learnt that the matter could further damage Nigeria’s international reputation, especially as the country seeks foreign investments while struggling with allegations of contract breaches, lack of transparency, and disregard for due process.
Aprivate company, Donnington Nigeria Ltd, along with its foreign partners, has notified the President Bola Tinubu-led Nigerian government of its intention to initiate international arbitration over the ACD/CTN (Cargo and Crude Oil Tracking and Notification) scheme.
SaharaReporters learnt that the matter could further damage Nigeria’s international reputation, especially as the country seeks foreign investments while struggling with allegations of contract breaches, lack of transparency, and disregard for due process.
This comes on the heels of a recent international embarrassment, where Nigeria’s properties abroad, including presidential jets and real estate in Liverpool, United Kingdom, were seized by a Chinese firm enforcing a court judgment.
SaharaReporters gathered that Gary Summers, a London-based solicitor representing Donnington Nigeria Ltd, Donnington International AG, Vortexra UK, and DP World UAE, has written to the Attorney-General of Nigeria, Chief Lateef Fagbemi (SAN), criticizing the government’s appointment of a new consultant for the ACD/CTN scheme.
He claims that the move disregards ongoing legal proceedings and raises serious concerns about transparency and due process.
Donnington had been involved in a legal dispute with the Federal Government over the same scheme, alleging that self-serving officials from the previous administration diverted the contract to themselves, despite an executive order endorsing Donnington after a thorough procurement process.
This decision, Donnington argues, has cost Nigeria billions of naira annually, as the scheme has remained unimplemented due to legal battles.
Donnington is seeking to overturn the re-award of the ACD/CTN scheme to P-LYNE Nigeria Ltd, a company linked to Sahara Energy Group, raising concerns about conflicts of interest.
The firm argues that awarding the contract to an entity involved in crude oil trading compromises the integrity of the tracking scheme and risks overlooking discrepancies in crude oil transactions.
Donnington contends that its original contract, approved under a no-cost, revenue-sharing agreement, was more beneficial to Nigeria, in contrast to the $21 million mobilization fee now awarded to P-LYNE.
In addition to legal action, Donnington has enlisted a team of international investigators, led by former London Metropolitan Police Assistant Commissioner Tarique Ghaffur, to scrutinise the government’s handling of the contract.
The company has also hired a forensic accountant to assess the financial losses incurred after its contract was terminated.
Donnington has warned that unless swift action is taken to restore its role in the scheme, Nigeria faces not only substantial financial losses but also reputational damage in international markets.
The company’s arbitration proceedings are being prepared under the ICSID Convention, citing violations of bilateral investment treaties.
Without intervention from the Attorney-General of Nigeria and Minister of Justice, Lateef Fagbemi, the dispute could further hinder Nigeria’s efforts to attract much-needed foreign investments.
