Nigeria faces another potential scandal that could harm its international reputation and foreign investment prospects. Recently, Donnington Nigeria Ltd, alongside its foreign partners, informed President Bola Tinubu’s government of plans to initiate international arbitration over the Cargo and Crude Oil Tracking and Notification (ACD/CTN) scheme.
Gary Summers, a London-based solicitor representing Donnington Nigeria Ltd, Donnington International AG, Vortexra UK, and DP World UAE, has criticized the government’s decision to appoint a new consultant for the ACD/CTN scheme, ignoring ongoing legal proceedings. Summers expressed concerns about transparency and due process, accusing officials of diverting the contract despite Donnington’s endorsement through a thorough procurement process.
Donnington claims this decision has cost Nigeria billions in lost revenue, as the scheme remains unimplemented due to legal battles. The company is now seeking to overturn the re-award of the contract to P-LYNE Nigeria Ltd, which it argues compromises the scheme’s integrity due to potential conflicts of interest.
Donnington asserts that its original no-cost, revenue-sharing contract was more favorable to Nigeria than the current arrangement, which includes a $21 million mobilization fee. In addition to legal action, the firm has hired a team of international investigators and a forensic accountant to assess the financial losses caused by the contract’s termination.
Donnington warns that unless its role is restored, Nigeria risks significant financial losses and further damage to its international standing. Arbitration proceedings under the ICSID Convention are underway, citing violations of bilateral investment treaties. The company urges the Nigerian Attorney-General to intervene, as the dispute could deter foreign investment crucial to the country’s economic recovery.
