How Shell duped Nigeria of $406.75 million – FG

shell logo 2

The Federal Government is demanding $406.75 million from Shell Petroleum Development Company of Nigeria Limited and its subsidiary, Shell Western Supply & Trading Limited, over alleged crude oil theft.

The amount, according to court documents presented in Lagos on Tuesday, represents the shortfall of the money the multinational oil firm paid into the Federal Government account with Central Bank of Nigeria.

The money was said to be for crude oil lifted in 2013 and 2014.

Prof. Fabian Ajogwu, Government Counsel, had accused the Anglo-Dutch company of not declaring or under-declaring crude oil shipments during the period, following forensic analysis of bills of laden and shipping documents.

Mr. Ajogwu, armed with sworn affidavits of three U.S.-based professionals, claimed that Shell cheated Nigeria of the revenue.

The professionals included Prof. David Olowokere, a U.S. citizen and lead Analyst at Loumos Group LLC, a technology and oil and gas auditing firm.

The others are Jerome Stanley, a Counsel at Henchy &Hackenberg law firm and head of the legal team engaged by Loumo Group LLC and Michael Kanko, founder and current Chief Executive Officer of Trade Data services Company.

According to the documents, the consortium of experts tracked the global movements of the country’s hydro-carbons, including crude oil and gas.

They identified the companies engaged in the practices that led to missing revenues from crude oil and gas export sales to different parts of the world.

They also revealed discrepancies in the export records from Nigeria with the import records at U.S. ports.

The undeclared shipments between January 2013 and December 2014 brought the total value of the entire shortfall to $406.75 million dollars, according to the documents.

The defendants were said to have failed to respond to a Federal Government’s letter through its legal representative, seeking clarification to the discrepancies.

The Federal Government is therefore, seeking a court order to compel the two companies to pay $406.75 million, being the total value of the missing revenue and interest payment at 21 per cent per annum.

In addition, the government is also asking Shell to pay general exemplary damages in the sum of $406.75 million and the cost of instituting the legal action.

However, the Presiding Judge, Mojisola Olatoregun Isola, has adjourned the matter to Oct. 20, for the mention of the case.

Meanwhile, the Federal government has also sued Chevron, Total and Agip, asking for a total of $12.7 billion over alleged non-declaration of 57 million barrels of crude shipped to the U.S. between 2011 and 2014.

They are among 15 oil majors targeted by the government for the recovery of 17 billion dollars in deprived revenue, the News Agency of Nigeria learnt .



Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: Discover!! New Solution Helps Men Get Bigger Penis To 7inch without Side Effect size and Last 25minutes+ During Sex Click Here To Read...

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.

  • Kamalu

    The fight against graft and underhand deals by this government is generating both excitement and discomfort. Even though not legally proven who would have thought that the IOCs whose official pledge and anthem is due process, integrity and transparency would have contemplated leaving such yawning gaps as to face this level of public scrutiny from a country described as fantastically corrupt by their home governments? Wallahi this Buhari government is remaking my full pride as a Nigerian. If this matter is proven, I can proudly face a Briton, an American, a Dutch, etal and call them viciously corrupt people. Carry go PMB my President!

    • share Idea

      I have my reservations for Buhari and his administration but on this one, if proven, he deserve my 100% support and praise. Nigeria we hail thee

  • LionHeart

    Shell, an Anglo-Dutch multinational company is this corrupt and yet the whole world don’t say nothing about it.

    • Factsay

      Oyibos are the most corrupt. After they will send $10million aid money and starts making noise. They will steal our billions and give us millions in aid fund

  • Factsay

    Shell owns Nigeria.They once boosted of having their men in every sector of govt in Nigeria.
    Until we defeat Shell and co we wont get our full independence

  • uzodimms

    For those who are not aware Shell is a complete heartless 419 company. If you worked and retired from Shell you will understand. Ask those who did.

  • Nigeria

    I hope this will not lead to further job loss in the oil industry.