Nigeria moves to overturn P&ID’s $9.6b claim

The Nigerian Government has moved closer to overturning the $9.6 billion judgement debt awarded against it in favour of Process and Industrial Development Limited by a United Kingdom court in what is widely believed to be an injustice and a direct result of fraud and corruption.
In what is clearly a positive step forward for Nigeria, the United Kingdom Commercial Court presided over by Justice Butcher on Thursday accepted the application of the Federal Republic of Nigeria in its case against P&ID to vary the condition of the stay of execution of the enforcement order it had earlier granted the firm.
Investigations carried out in the matter over the past few weeks have revealed incidences of very serious fraud, bringing into question both the legitimacy of the Gas Supply and Processing Agreement and subsequent award itself.
The UK court had on November 22, 2019 rejected the application of the Federal Government for extension of time to comply with the deposit of $200 million condition, but indicated its readiness to accept a “satisfactory bank guarantee” as proposed by the Federal Government towards the end of the hearing on the day.
However, on November 25, 2019, the court, while hearing the application for variation, granted an extension of the stay till November 26, 2019 and subsequently to November 28, 2019 when it finally varied the condition for stay, pending the hearing of the appeal filed before the UK Court of Appeal by Nigeria against the enforcement of the award based on a fraudulent Gas Supply and Processing Agreement purportedly signed by the Ministry of Petroleum Resources during the tenure of now deceased Rilwanu Lukman and P&ID.
It will be recalled that the Federal Government has maintained its decision to challenge the legality and validity of the GSPA both locally and in the UK where it is still contending that Nigeria is the seat of Arbitration.
The Federal Government had also insisted that no payment to P&ID could be made as they are under active investigation for fraud and corruption.
The Court did, however, maintain that its deadlines must be complied with.
For this reason, Nigeria proposed a bank guarantee as a variation to the previous order.
This was approved by the Court.
One of those involved in the case on Nigeria’s side said: “With Thursday’s security by the Commercial Court, Nigeria moves closer to overturning the injustice of the $9.6 billion judgement debt earlier awarded in favour of P&ID against Nigeria.”