Business a.m
In a huge win for Nigeria, a long-standing $11 billion arbitration award originally granted to Process and Industrial Developments Limited (P&ID) has now been put on hold. This decision comes after more than five years of extensive legal battles, marking a significant milestone for Nigeria.
The verdict, which was sent by email from Justice Robin Knowles,stated that Nigeria’s legal victory was due to the discovery of fraud in the gas processing contract. The Commercial Courts of England and Wales have confirmed this decision, providing a clear and decisive basis for Nigeria’s legal victory.
According to the original ruling from the private arbitration tribunal, which was issued on January 31, 2017, Nigeria was obligated to pay $6.6 billion to P&ID, along with interest dating back to March 20, 2013.
This interest rate, set at seven percent, led to a staggering daily accrual of $1 million, resulting in a potential total payment of over $11 billion prior to the most recent legal developments. However, the recent verdict from the Commercial Courts of England and Wales has cast doubt on the original decision. With the interest rate fixed at an astonishing seven per cent, this translated to a daily accrual of one million dollars. As a result, the potential payment swelled to a staggering $11 billion before today’s historic verdict.
The latest judgment has marked a major turning point in a long and complex legal battle that has attracted global attention and placed a significant strain on Nigeria’s finances. The discovery of fraud within the gas processing contract was a game-changing development, giving Nigeria the opportunity to successfully challenge the previously unassailable award.
In addition to its impact on Nigeria, this ruling has reinforced the need for transparency and integrity in all international business agreements, emphasizing the potential consequences of fraudulent practices on a global scale.
The judgment halting the enforcement of the $11 billion arbitration award against Nigeria in favour of P&ID was praised by President Bola Tinubu in a statement issued by Ajuri Ngelale, his special adviser on media and publicity,.
“Following Judge Knowles’ dismissal of the $11.5 billion (USD) value of the award plus accumulated interest, previously won by P&ID over a failed 2010 deal to allegedly build a gas processing plant, on the grounds that the award was obtained by fraud, President Tinubu commends the UK Court for prioritizing the merits of the case above all other considerations,” the statement read in part.
In his statement, President Tinubu said, “Today’s judgment is a victory not only for Nigeria, but for all of Africa and the developing world. For too long, we have been victims of economic malpractice and exploitation, often perpetrated by individuals in positions of power.
This landmark judgment sends a strong message to those who would seek to prey on our nations for their own gain: we will not stand for it. We will fight for the economic independence of our people, and we will create a legal framework that prevents future attempts at exploitation.”
President Tinubu also expressed gratitude to the defense team and the Federal Ministry of Justice and Office of the Attorney-General for their dedication and hard work in achieving the victory. He acknowledged their tireless efforts in protecting Nigeria’s interests in this case and thanked them for their commitment to ensuring justice for the Nigerian people
