The Federal Government of Nigeria has approached a British court seeking an $875 million (N315 billion) claim against US lender, JP Morgan Chase.
According to reports, FG is accusing the bank of failing to exercise due diligence in relation to the controversial Malabu oilfield deal.
Specifically, the Nigerian government said the bank was negligent in the manner in which it transferred funds from a disputed 2011 oilfield deal to the account of a company controlled by former Minister of Petroleum, Dan Etete.
Oil majors, Royal Dutch Shell and Eni had purchased in 2011 the controversial OPL 245 from Malabu Oil and Gas, a company controlled by Etete.
To secure the block, believed to be one of the most lucrative in Africa, Shell and Eni had deposited $1.3 billion in a Federal Government of Nigeria’s escrow account with JP Morgan, the suit claimed.
The suit further claimed that JP Morgan transferred more than $800 million from the escrow account to two accounts controlled by Etete’s Malabu, the previous owners of the oil block, following a request from Finance Ministry’s officials.
The Federal Government claimed JP Morgan did not exercise due diligence in the matter to ensure the funds did not leave the escrow account.
However, Reuters quoted a JP Morgan spokeswoman as saying on Thursday that the firm “considers the allegations made in the claim to be unsubstantiated and without merit.“