A Controversy Unveiled: Nigeria’s Unsolved GIHL Compensation Saga
The National Assembly has officially called for thorough investigations into a substantial $496 million compensation that Nigeria discreetly paid to Global Infrastructure Holding Limited (GIHL), an Indian company with which the federal government terminated a concession agreement over ten years ago.
Despite receiving considerable attention, the opaque details regarding this compensation have long stirred speculation, particularly as GIHL demanded the payment without much fanfare and subsequently took the Nigerian government to court over a contractual breach.
The controversy surrounding the GIHL matter was brought to light during a budget defense session before the National Assembly Joint Committee on Steel Development, during which Abubakar Audu, the Minister of Steel Development, was present to elucidate the rationale behind his department’s 2024 budget allocation.
Surprisingly, it has been disclosed that the federal government failed to conduct a proper inquiry into Global Infrastructure Holding Limited prior to disbursing billions to the company, despite numerous complaints about fraudulent activities within the company dating back to 2016.
Understanding the Nigeria-GIHL Deal
The Nigerian government’s recognition of the importance of the iron and steel industry in national industrialization dates back to the early years of Nigeria’s fourth republic. At the time, President Olusegun Obasanjo articulated plans to privatize Ajaokuta Steel and other steel companies, with Messrs SOLGAS Energy, an American company, assuming control of Ajaokuta in 2003. However, SOLGAS Energy’s 10-year concession contract was terminated in 2004 due to poor performance.
While there have been reports suggesting that GIHL assumed control of the National Iron Ore Mining Company in Itakpe, Kogi State in 2016, the company actually obtained a similar contract to that of SOLGAS Energy from President Obasanjo as far back as 2005.
In 2016, the Itakpe mining company was taken back under federal government ownership.
The Inuwa Mogaji Report
The Inuwa Mogaji Report is an essential document that brought to light various controversies relating to the Nigeria-GIHL concession over a decade ago. The report revealed that GIHL failed to meet performance targets, pay concession fees, and engaged in asset stripping, ultimately leading to the Yar Adua government’s cancellation of the concession agreement in 2008.
An Unfair Agreement
Given the contentious dealings between Nigeria and GIHL, Natasha Akpoti-Uduaghan, a senator from Kogi State, has raised concerns about a $496 million payment being given to a company that had obstructed Nigeria’s social and economic development. She noted that the agreement’s termination took place in secrecy and without public disclosure, raising concerns regarding its integrity.
Reports of Fraud
Allegations of fraud against GIHL have also garnered attention. Armed with court documents, Akpoti-Uduaghan highlighted the company’s purported illicit operations in Itakpe and expressed astonishment that Nigeria did not present the evidence before the English court. She also questioned the legitimacy of the reported $525 million compensation owed to GIHL by Nigeria.
An Ongoing Inquiry
In response to these longstanding uncertainties, the National Assembly unanimously agreed to conduct a public hearing to scrutinize the concession agreement between Nigeria and GIHL. The investigation will seek to delve into the findings of the Inuwa Mogaji Report, providing much-needed clarity on a controversy that has endured for over a decade.
PHOTO: Ajaokuta Steel Company
The National Assembly’s efforts to uncover the truth behind the Nigeria-GIHL controversy represent a significant step in the right direction. By shedding light on this compensation saga, the government can ensure transparency and accountability and, most importantly, uphold the interests of the Nigerian people. It is crucial to bring clarity to a decade-old case that continues to cast a shadow of doubt over the nation’s economic dealings.
