Nigeria’s Secret $496m Payment to Indian Firm Revealed: What Really Happened
It has been revealed that the federal government of Nigeria covertly disbursed a substantial sum of $496 million to Global Infrastructure Holding Limited (GIHL), an Indian company, despite a previous investigation into their activities over a decade ago. This disclosure has sparked urgent calls for a probe by the National Assembly into the circumstances surrounding this considerable compensation.
The compensation allocated to GIHL stemmed from a legal dispute with the Nigerian government, arising from the annulment of a concession agreement. Despite numerous reports and allegations of fraudulent activities involving GIHL dating back to 2016, it appears that no thorough investigation was conducted prior to the significant sum being disbursed by the Nigerian government.
The saga of GIHL and Nigeria dates back to the early 2000s when the Nigerian government, under President Olusegun Obasanjo, sought to privatise Ajaokuta Steel and other steel companies. The American company SOLGAS Energy was initially granted control of Ajaokuta in 2003, but their contract was terminated in 2004 due to poor performance. GIHL then entered the picture, obtaining a concession for the Ajaokuta steel complex in 2004, which was later converted to a 60 percent equity stake in 2007. However, this was not without controversy, with local companies raising concerns about underhand deals and undervalued transactions.
Moving forward to 2016, GIHL managed to take control of the National Iron Ore Mining Company in Itakpe, Kogi State, following the repossession of the mining company with the government’s permission. However, the company’s operations did not align with the terms of its agreement with the federal government, as revealed by Abubakar Audu, the Minister of Steel Development.
In addition to the $496 million compensation, it has been alleged that the Nigerian government paid GIHL staff N1.5 billion annually for three years, even though the company failed to meet its obligations. This has raised serious concerns and suspicions regarding the termination of the agreement and the hasty settlement reached between the two parties.
Furthermore, it was revealed that numerous fraudulent activities were reported, painting a grim picture of GIHL’s operations in Nigeria. These allegations were brought to light by Senator Natasha Akpoti-Uduaghan, who has been a vocal critic of the GIHL-Nigeria agreement, due to her involvement as a lawyer prior to her tenure as a senator.
The complexity of this issue necessitates a comprehensive investigation into the entire concession agreement. The National Assembly Joint Committee on Steel Development has pledged to facilitate a public hearing to delve into the secret dealings between Nigeria and GIHL, which is long overdue.
This saga sheds light on the importance of transparency and due diligence in international business dealings, especially when it involves significant sums of public funds. The people of Nigeria deserve to know the truth behind this controversial episode, and only through a thorough investigation can the full extent of GIHL’s operations and the compensation paid by the Nigerian government be uncovered.
