Nigeria Wins $11bn Debt Suit Against P & ID In UK Court | READ DETAILS
Faith Ukanwa
Oct 23, 2023
Nigeria Wins $11bn Debt Suit Against P & ID In UK Court | READ DETAILS
The Federal Government of Nigeria has won the legal case against Process & Industrial Developments (P&ID) Limited in a London court on Monday.
READ ALSO: How a Catholic Priest Slumped and Died While Delivering Homily in Delta Church
The judgment was delivered after five years of legal frameworks which have finally been to the advantage of Nigeria, as the court quashed the $11 billion arbitration award in favour of P&ID.
READ ALSO: Sabinus's Father Kidnapped in Nigeria
In a ruling delivered by e-mail, Robin Knowles, the Justice of the Commercial Courts of England and Wales, upheld Nigeria's prayer on the ground that the ill-fated gas processing contract was obtained by fraud.
READ ALSO: Wike Locks Horns With PDP NWC, Declares South-South Congress Final Despite Court Order
The UK judge dismissed the $6.6 billion arbitrary judgment against Nigeria of which interests have increased to $11.5 billion over a failed contract to develop a gas processing plant.
READ ALSO: Mother's Day: Abia Government Liaison Officer Honours Women, Says Mothers Shape Future Leaders
Judge Knowles ruled that the awards were obtained by fraud and that what had transpired in the case were contrary to public policy.
The Business and Property Court in London delivered the judgment in a case between the Federal Government of Nigeria and Process & Industrial Developments (P&ID) Limited.
This ruling came after the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, urged the bid winners for the Nigerian Gas Flare Commercialisation Programme (NGFCP), to hasten site development.
READ ALSO: Ofuji Ndị Igbo Sets 2026 Agenda, Promises Greater Community Engagement
Meanwhile, the federal government, alongside its partners has begun the deployment of tiny tankers for the transportation of crude oil through the creeks of the Niger Delta, following a protracted inability to fix the often-vandalised pipelines in the region.
READ ALSO: Bloodbath At Wedding: Bandits Kill 13, Abduct Many In Midnight Attack In Kaduna Community
P&ID had agreed with Nigeria in 2010 to build a gas processing plant in Calabar, Cross River State, but the company said the contract failed because the Nigerian government did not fulfill its end of the bargain.
READ ALSO: Abia: Prof. Gregory Ibe Congratulates Janet Agbede On Promotion To AIG
Claiming Nigeria breached the terms of the contract, P&ID took a legal recourse and secured an arbitral award against the country.
READ ALSO: "Ikwuano Locked Down For Alex OttiÔÇØ - Monday Ubani SAN Sends Strong Message To Opposition
On January 31, 2017, a tribunal ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre-and post-judgment interest at seven per cent.
READ ALSO: Nigeria bringing home Abacha, Ibori loots to fund roads, Niger bridge
Following the judgment, Nigeria applied for an extension of time and relief from sanctions.
READ ALSO: COVID 19: Buhari explains why they borrowing N850 Billion From Domestic Market
The application was granted by Ross Cranston, a judge of the Business and Property Courts of England and Wales, in September 2020, thereby returning the case to arbitration.
READ ALSO: How a Catholic Priest Slumped and Died While Delivering Homily in Delta Church
Nigeria had alleged that the gas deal was a scam conceived to defraud the country.
READ ALSO: Sabinus's Father Kidnapped in Nigeria
Lawyers representing the federal government told the court that P&ID officials paid bribes to secure the contract.
READ ALSO: Wike Locks Horns With PDP NWC, Declares South-South Congress Final Despite Court Order
But P&ID denied the allegation and accused the Nigerian government of "false allegations and wild conspiracy theoriesÔÇØ.
READ ALSO: Mother's Day: Abia Government Liaison Officer Honours Women, Says Mothers Shape Future Leaders
In a March trial at the court, Nigeria alleged that the contract was secured through dishonest means that included bribery and perjury and that the arbitration award, which has now risen to $11 billion because of interests, should be quashed.
source
Related Stories
Bloodbath At Wedding: Bandits Kill 13, Abduct Many In Midnight Attack In Kaduna Community
"Ikwuano Locked Down For Alex OttiÔÇØ - Monday Ubani SAN Sends Strong Message To Opposition
Mother's Day: Abia Government Liaison Officer Honours Women, Says Mothers Shape Future Leaders
Why ICPC Is Prosecuting Mike Ozekhome Over a London Property Deal That Has Shaken Nigeria's Legal Circle | READ DETAILS
Ofuji Ndị Igbo Sets 2026 Agenda, Promises Greater Community Engagement
How a Catholic Priest Slumped and Died While Delivering Homily in Delta Church
""
— Faith Ukanwa