Smarting from $9.9bn P&ID liability, FG risks fresh $3.5bn judgment debts

As the federal government tries to wriggle its way out of the failed gas project proposed to be executed by an Irish-owned firm, Process and Industrial Developments (P&ID) Limited, that has plunged the country into a $9.9 billion judgment debt, Nigeria risks fresh multi-billion US dollars judgment debts in several other cases if the federal government decides to stay aloof in pending arbitrations.

Documents obtained from sources in the Ministry of Justice showed that the federal government has fresh arbitration cases that might cost the country over $3.5 billion.

For instance, there is the Interocean Oil Development Company and Interocean Oil Exploration Company versus the federal republic of Nigeria, which is still pending; while the debt in the case between Nigerian Agip Exploration Limited et al versus the Nigerian National Petroleum Corporation was put at $500 million.

Similarly, there is also the Shell Nigeria Exploration and Production Company Ltd et al versus the Nigerian National Petroleum Corporation, whose debt if it goes against Nigeria, according to the document, is put at $1.4 billion.

In addition, there is Statoil (Nigeria) Limited et al versus the Nigerian National Petroleum Corporation – $1 billion; the Federal Government of Nigeria versus Resort International Limited – N88,070,917,933 ($243million); Shell Nigeria Ultra Deep Limited versus the Federal Republic of Nigeria; Guadalupe Gas Products Corporation versus Nigeria as well as the Arbitration CAS 2014/A/3744 & 3766, Nigerian Football Federation (NFF) versus the Fédération Internationale de Football Association (FIFA), that was awarded on May 18, 2015. This arbitration, however, was a declaratory award with no monetary claim.

Furthermore, the document also showed that there is a Land and Maritime Boundary case between Cameroon and Nigeria – Cameroon v. Nigeria: Equatorial Guinea intervening – as well as the United States —Import Prohibition of Certain Shrimp and Shrimp Products- (India; Malaysia; Pakistan; Thailand v United States), whereby Nigeria is among the third parties.

It was gathered that some other cases where Nigeria is a third party include Australia — Certain Measures Concerning Trademarks and Other Plain Packaging Requirements Applicable to Tobacco Products and Packaging- (Ukraine v Australia); and Australia – Certain Measures Concerning Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco Products and Packaging – Communication from the Appellate Body- (Honduras v Australia).