An Italian court sentenced two Milan prosecutors, Fabio De Pasquale and Sergio Spadaro, to eight months in prison on Tuesday for failing to file documents that could have supported Eni’s defense in an alleged corruption case involving a $1.3 billion oilfield in Nigeria.

The case, involving Eni and Shell, centered around the $1.3 billion acquisition of a Nigerian oilfield and was regarded as one of the energy industry’s most significant corruption trials.

The court noted that De Pasquale and Spadaro had omitted key evidence, including a video from a former Eni external lawyer that could have been favorable to the defense.

The recent verdict came from a court in Brescia, which has jurisdiction over judicial matters in Milan.

The Brescia court’s eight-month sentence aligns with the request made by prosecutors, who accused De Pasquale and Spadaro of withholding evidence that could have influenced the outcome of the Eni-Shell trial, thereby infringing on the defendants’ rights.

In response to the charges, the prosecutors’ lawyer sought a full acquittal, contending that no explicit rule mandated the filing of documents by prosecutors in such cases.

In March 2021, a Milan court acquitted Eni, Shell, and all other defendants, despite criticisms of the prosecutors’ conduct. Judges ruled that the two prosecutors had a legal duty to submit evidence that might have aided the defense. The lawyer did not offer immediate comments following the conviction.

Backstory

In 2020, the Nigerian government filed a case against Shell/SNUD and Eni asking for compensation in the sum of $1.3 billion over an Oil Prospecting License 245, also known as OPL 245.

The case which had dragged on for over a decade came to a halt when the Ministry of Justice withdrew its petition in an Italian Court in March 2024.

Meanwhile, an international Court in Italy had already declared Shell and its affiliate partners not guilty on all counts.

Nigeria also decided to “irrevocably” suspend any future legal claims in Italy against Eni, its affiliates, as well as present and former officers concerning rights related to the field.

What you should know

In 1998, Malabu Oil and Gas Ltd was awarded OPL 245 by the federal military government. However, in 2001, former President Olusegun Obasanjo revoked Malabu’s license and reassigned the oil block to Shell without a public bidding process.

After a protracted legal dispute, Malabu regained ownership of the block in 2006 through an out-of-court settlement with the federal government. In response to these actions, Shell initiated arbitration against Nigeria. Yet, when President Goodluck Jonathan came into office in 2010, he upheld the consent judgment, seemingly resolving the conflict.

This led to Shell and Eni reaching an agreement to purchase the oil block from Malabu for $1.1 billion. Additionally, the oil companies paid $210 million as a signature bonus to the Nigerian federal government.

However, the deal soon faced scrutiny from an international campaign, which alleged that the OPL 245 transaction was tainted by corruption, with accusations that the agreement involved bribes to Nigerian government officials.

The Critical Role of Nigerian Banks in Nation Building

The Chartered Institute of Bankers of Nigeria and the Body of Banks CEOs in Nigeria wish to express their concern over the persistent social media criticisms targeted at Nigerian banks. It is essential to highlight the significance and contributions of the banking sector, which remains one of the most regulated and integral parts of Nigeria’s economy.

The Nigerian banking industry is governed by rigorous regulations issued by the Central Bank of Nigeria (CBN), its primary regulator, and other direct and indirect regulatory bodies. A large number of these banks are publicly listed and adhere to the highest standards of transparency and compliance, as required by domestic and international investors and regulatory agencies.

In addition to the CBN, regulatory bodies like the Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), Financial Reporting Council (FRC), and Nigeria Deposit Insurance Corporation (NDIC), play pivotal roles in maintaining transparency, integrity, and accountability within the sector.

Nigerian banks are also staffed with a wealth of globally competitive and certified professionals, regulated by both national and international bodies. These professionals, coupled with partnerships with globally recognized service providers and investments in cutting-edge technologies, elevate Nigerian banks to global standards in every market they operate.

Internationally renowned auditing firms, rating agencies, and other independent bodies routinely evaluate the operations, financial records, and compliance of Nigerian banks. These rigorous assessments ensure that the banks align with global best practices, reflecting their commitment to delivering trustworthy and quality services to the public. As a result, Nigerian banks consistently receive high ratings both individually and collectively.

Investor confidence in Nigerian banks is evident, with the sector being a top choice for retail and institutional investors alike. The resilience and dynamism of the banking industry are built on the trust of its customers, demonstrating that the sector is a cornerstone of economic growth and development in Nigeria. Rather than being criticized, the continued strength of this sector should be a source of national pride.

The banking sector is pivotal to Nigeria’s economic growth, contributing significantly to individuals, businesses of all sizes, and the society at large. The economy’s development relies heavily on the banks’ intermediary roles, and their positive impact is undeniable.

If any individual or group has concerns or grievances regarding the operations of any bank, they are encouraged to direct such issues to the appropriate regulatory authorities. These bodies are equipped to address concerns impartially and professionally, ensuring that all matters are resolved through the proper channels.

Resorting to social media attacks, blackmail, or smear campaigns not only undermines the hard-earned reputation of these institutions but also seeks to unfairly manipulate targeted banks. We urge individuals engaged in such actions to desist and consider the facts before making accusations. The regulatory agencies are well-positioned to handle concerns with diligence and professionalism.

We remain committed to delivering the highest standard of banking services, guided by the regulations that govern our industry. Together, let us foster an environment of trust and collaboration, recognizing the positive impact of a professional sector that brings pride to Nigeria and Africa. As the banking sector continues its efforts to build a resilient Nigerian economy, we call on citizens to support its mission of creating a stronger economy that works for everyone.

Signed:

Dr Oliver Alawuba, FCIBProfessor Pius Deji Olanrewaju, Ph.D, FCIB

ChairmanPresident

Body of Banks CEOs in Nigeria The Chartered Institute of Bankers of Nigeria

The Nigerian National Petroleum Company (NNPC) Limited has increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets.

The price of the product increased to N998 per litre in Lagos on Wednesday.

NNPC increased the pump price from N855 per litre set in September.

Most of the retail outlets in Lagos have adjusted the price of PMS to N998 per litre.

Also, some private filling stations have started adjusting their prices, with some Mobil filling stations adjusting its pump price to that of NNPC.

The price development comes weeks after the NNPCL commenced petrol lifting at the Dangote Petroleum Refinery’s gantry after an extended period of price negotiations.

NNPCL filling stations across the country have also increased petrol price to ₦1,075 per litre.

This is the third increase in 30 days.

The new price are: Lagos – ₦998; South West – ₦1,025; Abuja,FCT – ₦1,030; South East – ₦1,045; South South – ₦1,075; and North East – ₦1,070.

NNPCL has been buying PMS at ₦898/l from Dangote Refinery, and selling to marketers at ₦765/l, therefore covering the offset of ₦133.

Recently, the state oil giant said it was no longer sustainable and reportedly end their exclusive partnership with Dangote Refinery.

With this new price, independent marketers may sell up to ₦1,300.

The new pump price has been implemented immediately on Wednesday

morning across the nation.