Investing in Nigeria is risky, ex-UK finance minister warns
A former Secretary of State for International Development in the United Kingdom, Priti Patel, has warned investors to be wary about investing in Nigeria.
The Member of Parliament predicated her warning on the alleged refusal of President Muhammadu Buhari to honour an agreement involving a firm, Process and Industrial Development and the Federal Government.
Writing in an Op-Ed in a London newspaper, City A.M., Patel said the firm had signed a 20-year contract with the government to create a new natural gas development refinery, but the project fell through after the FG reneged on its contractual commitments.
Upon taking office, she alleged that President Muhammadu Buhari promptly cancelled a compensation settlement, and has done “his level best to pretend Nigeria’s obligations to P&ID do not exist.”
The MP said, “Since Buhari reneged on this deal, P&ID has undertaken legal efforts to affirm a tribunal award, first decided in London. It also made several attempts in court to force the Nigerian government to respect its obligations.
“The most recent court decision at a London tribunal confirmed that the Nigerian government owes P&ID almost $9bn for the initial breach of contract, loss of income, additional costs, and interest accrued after five years of non-payment.”
The former Secretary of State said the FG had continued to flout international law and convention, by refusing to respect the various court decisions.