Ruling from FCT Court on Fraud Allegations in Malabu Oil Deal Involving Former AGF, Adoke

In a recent development, a High Court of the Federal Capital Territory at Jabi has dismissed charges of fraudulent conduct related to the handling of Oil Prospecting Licence (OPL) 245, commonly known as the Malabu Oil deal, against Mohammed Adoke, a former Attorney General of the Federation. The Economic and Financial Crimes Commission brought these charges forward.

On January 15, 2020, the anti-graft agency had brought charges against Adoke at the FCT High Court in Abuja, alongside Aliyu Abubakar, Gbinije of Malabu Oil & Gas Ltd, Nigeria Agip Exploration Ltd, Shell Ultra Deep Nigeria Ltd, and Shell Nigeria Exploration Production Company Ltd (SNEPCo).

Adoke was specifically accused of receiving a gratification of N300m from Abubakar in relation to the OPL 245 resolution.

Denying all accusations, Adoke submitted a “no case” application which was upheld by Justice Abubakar Kutigi. The judge ruled that the EFCC did not provide sufficient evidence to support their charges, and therefore, the defendant was acquitted of all charges.

Justice Kutigi also criticized the drafting and prosecution of the charges, advising the prosecuting counsel to exercise caution in similar cases in the future.

The controversy dates back to April 9, 1998 when OPL 245 was awarded to Malabu Oil and Gas Ltd by the Federal Military Government. This company was reportedly mainly owned by Mohammed Abacha, the son of former military ruler Sani Abacha, and Dan Etete, who served as the petroleum minister at that time.

Subsequently, President Olusegun Obasanjo revoked Malabu’s license and allocated the oil block to Shell. However, Malabu challenged this decision in court and in 2006 regained ownership through an out-of-court settlement with the Federal Government.