The Malabu Oil Prospecting Licence, OPL 245 saga has earned its place in Nigeria’s history as one of the country’s most controversial, intractable affairs involving both public and private sector players. After twenty-eight years of crisis, negotiations and litigations in four countries, no resolution has been brokered.
From April 29, 1998, when the late General Sani Abacha-led Federal Military Government awarded OPL 245 to Malabu Oil and Gas Ltd, four former Presidents of the Country including Olusegun Obasanjo; late Umoru Yar’Adua; Goodluck Jonathan and Mohammadu Buhari has had cause to open investigations on the matter, or to be dragged to courts either in London, Milan of the Americas over the matter. Even a House of Representatives Committee in 2003 investigated the contentions over OPL 245 sale and ownership.
Nigeria remains one of the losers in this 28 years saga with £70 million court fine hanging on its neck presently.
Other losses suffered by the Country says Oil sector experts, is that the OPL now OML 245 would have boosted Nigeria’s GDP by $41 billion and realised tax revenue of $3.9 billion over a 25 years lifespan.
In 2018, a Canadian think-tank, Resources for Development Consulting projected that the oil field has potentials of earning $9.8 billion to $15.6 billion for the Federation Account. If and when production starts, it would add 150,000 barrels per day to Nigeria’s crude output
Another oilblock, the OPL 247 awarded to SAPETRO owned by Gen T Y Danjuma, (rtd) as at first quarter of 2025 pooled revenue of ₦199.9 billion and earned a profit after tax of N34.2 billion
On a positive note, President Bola Tinubu has indicated interest in proffering a final resolution to the controversial oil deal and the curtains drawn over it.
Speaking recently on the affair, the Minister of State for Petroleum Resources, Sen Heineken Lokpobiri told journalists that President Bola Tinubu has ordered the Minister for Justice/Attorney-General of the Federation, Lateef Fagbemi, to clear court cases on $1.3 billion deepwater OML 245 oil block.
Others mobilised to implement the President’s directive include the Minister; Economic and Financial Crimes Commission (EFCC); The Nigerian Upstream Petroleum Regulatory Commission, (NUPRC) and Nigerian National Petroleum Company Limited, (NNPC Ltd).
The Minister said that parties involved in the deal including Shell, Eni, the Italian oil company were currently negotiating with the Government to end the more than 28 years crisis and litigation surrounding the prolific oil block
He explained that JP Morgan, a financial institution sued the Federal Government for trying to smear its image in the saga, adding that the fine imposed by the Court remain binding on Nigeria.
“So we have been fined over £70 million by the court. Who will pay that? You and I will pay that, or our children will pay, because it is a judgement debt.
“And in all the ones that we pursue both in Switzerland and other locations, we have no evidence to get conviction.
“And so it makes sense for this government to come and say that for 28 years, this block has been idle. This block is a prolific block that will add so much value to our economy, so let’s see how we can resolve the problem,” he said.
On a sad note, even as the Federal Government which ought to have the last say on the matter works to close the file on the case, some naysayers have orchestrated moves to continue dragging the name of Chief Dan Etete, former Minister of Petroleum Resources in the mud over the matter.
These individuals priding themselves as ‘powerful and highly placed’ have bones to grind with Chief Dan Etete under whose watch as Minister of Petroleum Resources the Malabu OPL 245 transaction was effected. They believe he should play the scapegoat to clean up the scandal, notwithstanding the fact that no court of law from Abuja, Lagos, London to Milan to which he had been dragged had found him culpable in the matter
After Nigeria, Etete now 80 years have suffered not just monetary losses, but also psychological bruises for a matter which the courts have finally absolved him of guilt.
On March 17, 2021, after more than three years of investigations and legal proceedings, in Milan, Italy leading to very high costs and serious and unjust reputational consequences for Etete, justice eventually took its course, confirming with a definitive sentence his complete acquittal, because “there is no case to answer”.
Etete’s acquittal was further affirmed on November 11, 2022, when the Court of Appeal of Milan rejected the apeal by the Nigerian government, thus confirming the first-instance ruling and condemning Nigeria to bear all court fees
Etete in a statement hailed the verdict of the Italian court as “significant and wide ranging”, adding that the Milan judgement “independently follows the path of the UK’s trial and decision on the malicious prosecution of the Nigerian Government.”
The former oil minister noted that the court ruling also affirms that the “settlement agreements on transfer from Malabu to Shell and ENI were valid.” He further noted that the court has confirmed that no bribes were paid to anyone and that there is no case to answer on the issue.
“These matters have occupied the Milan Courts for over 3 years, with almost 200 witnesses. The FGN and Prosecutor’s position has been found to be entirely baseless – No case to even answer said the Court,” he said.
“Milan was actively chosen by FGN to determine the issue of alleged corruption on OPL 245. They lost and must rightly live with that decision.
“The High Court in London ruled that FGN made the conscious choice to determine all alleged corruption on OPL 245 in Milan, both civilly and criminally. Both have now rightly lost in the jurisdiction they themselves chose.
“The acquittal in Milan is therefore determinative in all jurisdictions, including Nigeria. Any and every Order made against Chief Dan Etete in any Nigerian court or directly or indirectly in any other court on alleged corruption on OPL 245 are hereinafter entirely invalid and will be struck out”, the statement signed by his counsel submitted.
Etete added that he and Malabu have jointly and separately suffered “massive and unquantifiable losses” as a result of what he described as “malicious and politically motivated wrongful allegation of corruption.”
Mr Etete said agreements are meant to be honoured and serious allegations of fraud need to be particularized and proven. The Nigerian government did neither, he argued, adding that the government now faces a valid, irrefutable claim for omission and commission on OPL 245 which should never have happened
“Any and every order made against Chief Dan Etete in any Nigerian court or directly or indirectly in any other court on alleged corruption on OPL 245 are hereinafter entirely invalid and will be struck out.”
Etete noted that his reputation dropped over allegations of corruption levelled against him, adding that Malubu also lost over $10 billion
“Those losses exceed US$10 billion which are entirely and properly recoverable against FGN. The legal tests of remoteness and measure of damages are conclusively and legally satisfied.
“Importantly, that Arbitration stimulated a settlement, with duress, whereby Malabu was forced to accept US$1.2 billion for a concession with a proper market value of at least US$8-9 billion
“Malabu was therefore deprived of approximately US$8-9 billion in value on sale at the time, but over US$15 billion if allowed to develop the oil block as contractually agreed and upon which Malabu paid a signature bonus of US$210 million to the Federal Government of Nigeria.”
All the facts as proffered and affirmed by the courts nothwithstanding, it appears some forces are still pushing for Etete to be tried, even in absentia by the EFCC.
Etete, appointed as Nigeria’s Minister of Petroleum Resources in 1995, played a pivotal role in introducing the marginal oil field regime and indigenous participation in Nigeria’s oil and gas industry. His contributions have however been beclouded by the controversy around the controversial OPL 245, becoming the target of a protracted legal battle involving major oil companies amid allegations of corruption that have marred his reputation and overshadowed his contributions to Nigeria’s oil sector.
Etete’s ordeal is not isolated. Globally, individuals have faced similar legal battles, where accusations are levied, with years spent in court, only to culminate in acquittals. These cases highlight systemic issues within legal frameworks often driven by political or economic motivations.
In the UK, the case of the Birmingham Six remains a stark reminder of the fallibility of justice systems. Six Irish men were wrongfully convicted in 1975 for pub bombings in Birmingham, based on coerced confessions and questionable forensic evidence. After 16 years of imprisonment, their convictions were quashed in 1991, revealing systemic flaws such as investigative misconduct and the suppression of evidence.
Politically Exposed Persons (PEPs) often find themselves under intense scrutiny due to their influential positions, making them susceptible to allegations of corruption. In several instances, PEPs have been wrongfully accused and, despite subsequent exoneration, have suffered significant reputational damage due to smear campaigns. Four notable cases from different countries clearly illustrates these points:
Former Ghanaian President John Dramani Mahama was implicated in a bribery scandal involving Airbus SE, with allegations suggesting his involvement through his brother, Samuel Adam Mahama. These claims, lacking substantial evidence, were perceived as politically motivated to tarnish Mahama’s reputation and divert attention from governmental shortcomings. The Office of the Special Prosecutor (OSP) eventually exonerated Mahama, but the smear campaign had already inflicted damage on his public image.
Nigeria’s former President of the Senate, Sen. Adolphus Wabara faced allegations in 2005 of accepting a ₦55 million bribe to influence budget approvals. Despite his resignation and a prolonged 14-year legal battle, Wabara was acquitted in 2019 due to insufficient evidence.