Legal Victory for Nigeria
In a significant legal victory for the Federal Government of Nigeria, the UK Business and Property Court in London, presided over by Justice Robin Knowles, has overturned the $11 billion arbitration award against Nigeria in the Process and Industrial Developments Company (P&ID) case. This award, initially $6.6 billion in 2017, had grown substantially due to accrued interest.
A Long-Running Dispute
The legal dispute traces back to 2010 when P&ID Limited entered into a gas supply and processing agreement with Nigeria, aiming to establish an Accelerated Gas Development project in Cross River State. However, the project never came to fruition, leading P&ID to accuse Nigeria of breaching the contract. In 2015, P&ID secured a $10 billion compensation judgment.
Refusal to Settle
Despite an initial out-of-tribunal settlement agreement during former President Goodluck Jonathan’s tenure, President Muhammadu Buhari’s administration refused to pay the negotiated sum and challenged the award’s enforcement in the English Commercial Court. Subsequently, the London court added $2.4 billion in interest, bringing the total to $9 billion.
Ruling in Nigeria’s Favor
In the recent ruling, Justice Knowles concluded that the award was fraudulently obtained and ran contrary to public policy. He also exonerated Mr. Olasupo Shasore (SAN), a former Attorney-General of Lagos State, from bribery allegations related to the case.
Victory Against Corruption
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, praised the verdict as a victory against corruption and predatory international investors. He revealed that P&ID had approached the Nigerian government for an out-of-court settlement just last week but commended President Bola Tinubu’s administration for refusing to condone corruption or settle with fraudulent parties.
Significance Beyond Nigeria
President Tinubu himself lauded the judgment, emphasizing its significance not only for Nigeria but also for other developing nations victimized by unjust economic practices. He commended the defense team and government agencies for their relentless efforts in securing this landmark victory.
What Lies Ahead
While the court’s ruling favors Nigeria, subsequent hearings will determine the costs to be paid by P&ID and other parties involved.
[Source: The Sun Nigeria](https://www.sunnewsonline.com/pid-uk-court-quashes-11bn-awarded-against-nigeria/)
