The Business and Property Court in London delivered a stunning blow to the $11 billion arbitration award in favor of Process & Industrial Developments (P&ID) against Nigeria. This legal battle, marked as case CL-2019-000752, culminated in a judgment – the process through which P&ID secured a contract in 2010 to construct a gas processing plant in Calabar, Cross River State, was deemed fraudulent.
Justice Robert Knowles, the presiding judge, issued a resounding verdict, asserting that the entire foundation of the 2010 contract was marred by fraud. He stated unequivocally, “The Awards were obtained by fraud and the way in which they were procured was contrary to public policy. What happened in this case is very serious indeed, and it is important that section 68 has been available to maintain the rule of law.”
The legal tussle between Nigeria and P&ID spanned several years, with the genesis of the conflict stemming from P&ID’s accusation that the Nigerian government had reneged on a contract by failing to provide the agreed-upon gas supply. This debacle led to a judgment debt of $6.6 billion in 2017 when an arbitration tribunal ruled that Nigeria must pay P&ID, along with accruing interest starting from March 2013.
he administration of former President Goodluck Jonathan negotiated an out-of-tribunal settlement, agreeing to pay P&ID $850 million. This settlement was subsequently inherited by the government of President Muhammadu Buhari. However, President Buhari rejected the idea of disbursing the negotiated sum, setting aside the settlement agreement, and opting to challenge the enforcement of the award in the English Commercial Court.
The English Commercial Court, in its original ruling, added $2.4 billion in interest to the initial award, bringing the total to $9 billion. Nevertheless, Nigeria’s legal battle against the award took another turn when the judge granted a stay on asset seizures while the legal challenge was ongoing. As part of this order, Nigeria was required to pay $200 million to the court within 60 days to secure the stay and also cover certain court costs for P&ID within 14 days.
The initial verdict delivered on August 16 transformed the arbitration award held by P&ID into a legal judgment, granting the British Virgin Islands-based company the opportunity to seize international assets belonging to Nigeria.
In 2018, the Economic and Financial Crimes Commission (EFCC) launched an investigation into the company and discovered evidence of two bank transfers totaling $20,000 made by Dublin-based Industrial Consultants (International) Ltd., a part of the P&ID group, to Grace Taiga, a Nigerian government lawyer overseeing the gas plant contract’s award.
Meanwhile, President Bola Ahmed Tinubu, celebrated the groundbreaking judgment delivered by Justice Robin Knowles of the Business and Property Court in London. The court’s ruling marked a momentous victory for Nigeria against P&ID Limited.
In a statement issued following the judgment, Tinubu commended the UK Court for prioritizing the merits of the case above all other considerations. He emphasized that the dismissal of the $11.5 billion award, along with accrued interest, was a testament to the fight against economic conspiracies and corrupt officials who conspired to extort and indebt nations.
Tinubu declared, “Today’s victory is not for Nigeria alone. It is a victory for our long-exploited continent and for the developing world at large, which has for too long been on the receiving end of unjust economic malpractice and overt exploitation.”
He also expressed his appreciation for the diligent efforts of the defense team and acknowledged the pivotal role played by the Federal Ministry of Justice and the Office of the Attorney-General in safeguarding Nigeria’s interests throughout this challenging legal battle.