Nigeria Wins Landmark Legal Battle Against P&ID, Avoids $11 Billion Payment
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Nigeria Wins Landmark Legal Battle Against P&ID, Avoids $11 Billion Payment
By Alabidun Shuaib AbdulRahman
The Federal Government of Nigeria achieved a significant legal victory as it won its case against the Process and Industrial Developments Company (P&ID) in a Business and Property Court in London, presided over by Justice Robin Knowles on Monday.
The case, marked CL-2019-000752, aimed to overturn a $6.6 billion arbitration award in favor of P&ID in 2017, which had accrued interest, bringing the total to approximately $11 billion before the recent judgment.
In this ruling, the court also cleared Mr. Olasupo Shasore (SAN), a former Attorney-General of Lagos State, of bribery charges related to his representation of Nigeria in the arbitration.
Recall that the dispute between Nigeria and P&ID stemmed from a 2010 gas supply and processing agreement that never materialized, leading to P&ID’s accusations of contract breach by Nigeria.
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P&ID had initially won a judgment for a $10 billion compensation in 2015, which later increased to $11.5 billion with interest.
Former President Goodluck Jonathan’s government had reached an out-of-tribunal agreement to pay $850 million, but President Buhari refused to honor it, resulting in the legal battle.
The London court’s recent ruling declared the award was obtained by fraud and contrary to public policy.
Justice Knowles’ decision highlighted Mr. Shasore’s efforts to represent Nigeria’s interests effectively and his contributions to the case.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, expressed satisfaction with the judgment, describing it as a triumph against corruption and predatory international investors.
President Bola Tinubu also commended the UK court’s decision as a landmark victory, emphasizing that it represents a significant win not only for Nigeria but also for other developing nations facing unjust economic malpractice.
