NIGERIAN GOVT Vs SHELL: Court adjourns $406.7m debt recovery suit until June 19

A Federal High Court in Lagos on Thursday, adjourned until June 19, hearing in a debt recovery suit filed by the Federal Government, against Shell Western Supply & Trading Ltd, over alleged $406.7 million shortfall in Crude Oil shipment.

Counsel to the FG, Prof. Fabian Ajogwu, SAN had filed a suit numbered FHC/L/CS/336/16, against the defendants, Shell Petroleum Development Company of Nigeria Ltd and its subsidiary, Shell Western Supply & Trading Ltd.

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

The case adjourned until June 19, due to the Eid-Il-Fitr celebrations is pending before Justice Mojisola Olatoregun.

The new date has already been communicated to respective parties.

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In the suit, the plaintiff, (FG) is claiming the sum of 406.7 million dollars, from the defendants, representing the shortfall of money it paid into the Federal Government account with the Central Bank of Nigeria (CBN).

In a supporting affidavit, the Plaintiff said 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.

Plaintiff added that the undeclared shipments between January 2013 and December 2014 brought the total value of the entire shortfall to 406.75 million dollars.

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

The Federal Government, is therefore, seeking a court order to compel the two companies to pay 406.7 million dollars, 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 406.7 million dollars as well as the cost of the legal action.

By Babatunde Alao…

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