Economics

Nigeria Demands $62 Billion From Oil Majors for Past Profits

  • Government demand based on October 2018 Supreme Court decision
  • State says oil companies failed to comply with 1993 law
A man walks thr gas flares in Idu, Rivers State, Nigeria.

Photographer: George Osodi/Bloomberg

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Nigeria is seeking to recover as much as $62 billion from international oil companies, using a 2018 Supreme Court rulingBloomberg Terminal the state says enables it to increase its share of income from production-sharing contracts.

The proposal comes as President Muhammadu Buhari tries to bolster revenue after a drop in the output and price of oil, Nigeria’s main export. It’s previously targeted foreign companies, fining mobile operator MTN Group Ltd. almost $1 billion for failing to disconnect undocumented SIM-card users, and suingBloomberg Terminal firms including JPMorgan Chase & Co. in a corruption scandal.