Nigeria Seeks To Recover $62bn From IOCs As Unpaid Profits

Nigeria is seeking to recover as much as $62bn from international oil companies, using a 2018 Supreme Court ruling that enables the Federal Government to increase its share of income from production-sharing contracts.

The proposal comes as President Muhammadu Buhari tried to bolster revenue after a drop in the output and price of oil, Bloomberg reported on Wednesday.

Nigeria previously targeted foreign companies, fining mobile operator MTN Group Limited almost $1bn for failing to disconnect undocumented SIM-card users.

Nigeria also sued JPMorgan Chase & Co. in a corruption scandal.

In the latest plan, the Federal Government said energy companies failed to comply with a 1993 contract-law requirement that Nigeria should receive a greater share of revenue when oil price exceeds $20 per barrel.

Bloomberg cited a document prepared by the attorney-general’s office and the Ministry of Justice.

While the government had not said how it would recover the money, it had said it wanted to negotiate with the companies.

In the Federal Government’s battle with MTN, the fine imposed on the company was negotiated down from an initial penalty of $5.2bn.