The Federal Government says it has settled a long-standing $5.26bn contractual dispute with a foreign investor group in the steel sector for $496m.
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami confirmed this statement to newsmen.
In a statement signed by the Special Assistant, Media and Public Relations, Office of the AGF, Dr Umar Gwandu, hinted that mediation proceedings were under the Alternative Dispute Resolution framework of the International Chamber of Commerce led by Phillip Howell-Richardson.
According to the government, the settlement agreement came into effect on 19 August 2022, adding that Nigeria has succeeded in reducing the claim in mediation brought by the international firm of King and Spalding, legal representatives of the Global group, by 91 per cent.
Gwandu, revealed that the source of the disputes were five contracts that was entered into by the 1999 – 2007 administration of President Olusegun Obasanjo which gave complete dominance over the Nigerian steel space to one company group, the Global Steel group.
Recall that the administration of Umaru Yar’ Adua proceeded to terminate the contracts contrary to legal advice offered by the Federal Ministry of Justice, which cited the termination cost in the form of damages.
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