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Jubilation as Nigeria Floors P&ID in UK Court; Court Grants Relief From $10bn Fine

chuks oti

Sep 04, 2020

Nigeria has secured a landmark victory in its pursuit to overturn a $10 billion judgement awarded against it in a case against Process and Industrial Developments (P&ID).

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Delivering his judgement on Thursday, Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria's application for an extension of time and relief from sanctions.

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On January 31, 2017, a tribunal had ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre- and post-judgment interest at 7 percent.

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The current outstanding amount is estimated at $10 billion.

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The Federal Government had approached the court to establish that the contract was awarded on illegal terms.

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Nigeria's lawyers told the court in July that P&ID officials paid bribes to get the contract.

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P&ID reportedly entered a gas supply and processing agreement with Nigeria in 2010.

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Claiming Nigeria breached the terms of the contract, it took a legal recourse and secured an arbitral award against the country.

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Nigeria has been making moves to overturn the judgement and has gotten court clearance to request documents from a P&ID stakeholder and review bank statements of ex-President Goodluck Jonathan, Diezani Alison-Madueke and Rilwanu Lukman, former ministers of petroleum.

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The Economic and Financial Crimes Commission (EFCC), on August 18, arraigned James Nolan, a Briton, and six companies over their alleged involvement in the contract.

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