Abacha heads to Supreme Court over disputed oil block

Mohammed Abacha, son of the late military ruler Sani Abacha, is taking his legal battle over the ownership of Oil Prospecting Licence (OPL) 245 to the Supreme Court, following a Court of Appeal decision that dismissed his claim.

Abacha’s legal team, led by Reuben Atabo, filed a motion at the Court of Appeal seeking permission to challenge the appellate court’s May 23 judgment before the Supreme Court.

The dispute stems from a longstanding legal contest over the allocation of OPL 245, one of Nigeria’s most valuable oil assets. Malabu Oil and Gas Ltd, the company at the center of the controversy, had earlier filed a suit at the Federal High Court contesting the reallocation of the oil block to Agip and Shell.

Agip, represented by Babatunde Fagbohunlu, challenged the court’s jurisdiction, arguing that Malabu’s case was filed outside the legal time frame and was therefore statute-barred. On December 22, 2020, the Federal High Court rejected Agip’s objection, prompting an appeal.

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Delivering judgment on May 23, 2025, a three-member panel of the Court of Appeal nullified the lower court’s decision. Justice Hamma Akawu Barka, who led the panel, ruled that the Federal High Court failed to address critical issues raised in Agip’s preliminary objection.

The panel held that the trial court had simply struck out Agip’s objection without ruling on concerns about fair hearing, abuse of court process, and whether the case was statute-barred.

The judgment stated that “the key issues highlighted by Agip were not pronounced upon or resolved by the lower court,” and ruled in Agip’s favor, concluding that the suit was filed outside the legally stipulated three-month period. The Federal High Court’s decision, delivered by Justice Binta Nyako, was subsequently set aside.

In a motion dated June 4, Malabu is requesting leave to raise new legal arguments and appeal the ruling on the basis of both fact and law.
An affidavit filed by Edwin John stated: “There are serious questions of law to be tried by the Supreme Court in the appeal arising from the May 23 judgment.”

He added that “there is the likelihood and real possibility of the success of the appeal in the Supreme Court,” urging the court to grant the motion in the interest of justice.

John further argued that rejecting the motion would permanently bar the applicant from pursuing a constitutional right of appeal.

Background to the OPL 245 Dispute
Mohammed Abacha asserts control of Malabu Oil and Gas Ltd, the company originally granted the OPL 245 block in 1998 under his father’s regime.

In 2011, Shell and Eni paid $1.1 billion to acquire the oil block following a settlement with the Nigerian government. The companies also paid a $210 million signature bonus to the government. However, the transaction became the subject of international controversy, with civil society groups alleging that the funds were used to bribe government officials.

Abacha maintains that Malabu was excluded from the negotiations that led to the 2011 deal involving the federal government, Shell Nigeria Ultra-Deep, and Nigeria Agip Exploration.

Under President Muhammadu Buhari’s administration, the Nigerian government pursued legal action against Shell, Eni, and other entities over the deal. However, multiple cases failed to produce convictions or favorable rulings.

On March 17, 2021, an Italian court acquitted all defendants of corruption charges. The U.S. Securities and Exchange Commission also dropped its investigation in 2020, citing insufficient evidence.

In another blow, Nigeria lost a $1.7 billion claim against JP Morgan Chase in 2022 over the transfer of proceeds from the oil deal. The government eventually withdrew its $1.1 billion civil case in Italy in November 2023.

(CABLE)