A Nigerian businessman and principal suspect in the Malabu OPL 245 scandal, Abubakar Aliyu, has said he received $400million as a “consultancy fee.”

OPL 245, estimated to hold 482 million barrels of economically recoverable oil, expired on May 11, 2021, ten years after Shell and Eni paid $1.3billion for the license in a deal trailed by criminal investigations and trials.

The Malabu scandal involved the transfer of about $1.1 billion by Shell and ENI through the Nigerian government to accounts controlled by a former Nigerian petroleum minister, Dan Etete.

From accounts controlled by Etete, about half the money ($520 million) went to accounts of companies controlled by Abubakar, popularly known in Nigeria as the owner of AA oil.

Anti-corruption investigators and activists suspect he fronted for top officials of the Goodluck Jonathan administration as well of officials of Shell and ENI.

The transaction was authorised in 2011 by ex-president Jonathan through some of his cabinet ministers and the money was payment for OPL 245, one of Nigeria’s richest oil blocks.

The oil resources of the OPL 245 license have remained undeveloped since the controversies began.

Eni initiated international arbitration proceedings against Nigeria in September, alleging the government has breached its obligations by refusing to let the firm develop the license, which has now expired this May.
According to the transcript of a Milan court, Abubakar, an ally of controversial former Petroleum Minister and another suspect in the criminal trial, Dan Etete, said he got $400million as consultant fee in the deal.

He said he used part of the fund to buy some properties as follows: three properties in Miatama, two in central area Abuja, three properties in Lagos in Ikoyi, Lekki and Victoria Garden City VGC and a commercial Property Shopping Mall in Dubai, UAE and a residential property also in Dubai UAE.

Abubakar stated (spelling and grammar as in original),

Sometime in 2011, I and Chief Dan Etete met and had a meeting in his house in maitama Abuja (over) in respect to Malabu Oil and Gas. The meeting [with Etete] was about how to solve the issue surrounding (M) Block 245 which we sat down and agreed that I should take this matter and discuss with the then President Dr Goodluck Ebele Jonathan and I would act as a consultant.

This we all agreed then I went to the President and I had a meeting with him which he would see how he would resolve this matter for the interest of Nigeria and the interest of everybody, then it was agreed I would be paid a consultancy fee, the amount was not stated, the amount was not established because we did not know how much the oil well would be.

That necessitated furthermore, the then Attorney General Bello Adoke was called upon by the president that he set up a meeting in the Attorney General office which he did. After several hours meeting between Shell, Eni, Attorney General’s office, myself the meeting was postponed to the next day.

Then the second day, we came to the meeting, when we came, Malabu started their case, Shell and ENI went outside the door to have a private meeting and gave a counter offer of $1.092.040.000 United States Dllars as against $3bn Dollars proposed by Malanu. Then Attorney General came in as an arbiter and ask Malabu and myself to go out and hold a private meeting which we did, we came back to agree the offer of $1.092.040.000 it was agreed that $210M would be deducted to pay signature Bonus to the Federal Government from payment to Malabu.

The balance was paid to Malabu. I need to add that Dan Etete was consulted regarding the offer before we (concurred) agreed. Then $400M Four Hundred Million United State Dollars was paid to me as my consultancy fee and payment for properties as follows: (1) One three property in Miatama and (2) two in central area Abuja, (3) Three properties in Lagos in Ikoyi, Lekki and Victoria Garden City VGC (4) A commercial Property Shopping Mall in Dubai, UAE and residential property also in Dubai UAE.

The people in the meeting I can remember there were eleven – 11- White people in Shell, while ENI was represented by about five – 5 – white men. The Attorney General and Permanent Secretary/ Solicitor General by name of Abba Yola.

Justin Nwosu

Justin Nwosu is the founder and publisher of Flavision. His core interest is in writing unbiased news about Nigeria in particular and Africa in general. He’s a strong adherent of investigative journalism, with a bent on exposing corruption, abuse of power and societal ills.