Nigeria Sues JP Morgan For U.S.$1.7 Billion Over Malabu Oil Deal

A London high court began hearings on February 23, 2022, of a lawsuit filed by the Nigerian government against U.S. bank JP Morgan Chase in the controversial Malabu oil scandal. In the suit, Nigeria is claiming more than U.S.$1.7 billion for the bank's role in the controversial deal.

In 2011, Shell and Eni, paid U.S.$1.3 billion to the Nigerian government for the acquisition of an oil block prospecting licence. However, it was alleged that about U.S.$1.1 billion of that amount ended up in the account of Malabo Oil and Gas, which was owned by former petroleum minister Dan Etete. It is alleged that the funds were used to pay political bribes.

Oladeinde Olawoyin writes in Premium Times, that according to court documents reported on by Reuters, Nigeria alleges that JP Morgan was "grossly negligent" in its decision to transfer funds paid by oil giants Shell and ENI into a third party account controlled by the former oil minister, who also faces charges in the Italian courts.

The London case dates back to 1998 when Nigerian military ruler Sani Abacha awarded the offshore oilfield licence, OPL 245, to a company former oil minister Etete owned. 

Shell and Eni have however, consistently denied being aware that the money would be used for bribes, but a report alleged that senior Shell executives were briefed on how the money would be used.