Nigeria Agreed to Pay $496 Million to Settle Claims over its Steel Plants

SEATTLE (Scrap Monster): The Government of Nigeria announced that it has agreed to pay $496 million in settlement of a multimillion dollar claim by an Indian company, Global Steel Holdings Limited, over the country’s steel industry.

According to Attorney-General Abubakar Malami, the government has reached an agreement to pay the above sum of money, in settlement of the dispute. It must be noted that the firm has been demanding $5.28 billion. The agreement was reached under the alternative dispute resolution framework of the International Chamber of Commerce. The final deal grants a 91% haircut for the government on the Indian firm’s original claims.

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Between 2004 and 2007, Global Steel Holdings had acquired rights to Nigeria’s entire state steel industry via five major concessions and share purchase contracts. It had also gained access to the country’s iron ore reserves and the central railway network. However, the federal government revoked the agreement iron ore reserves and the central railway network, citing that the concession terms at that time were not favourable to the country.

Several attempts were made by Global Steel and the Nigerian government between 2011 and 2020, to settle the dispute, but all of them resulted in failures.

Abubakar Malami paid tribute to the Nigerian President Buhari for his dedication to resolving this problem, which is expected to provide huge boost to the country’s industrialization plans.