After a hard fought protracted legal battle, Nigeria on Monday won its bid to overturn an $11 billion damages bill as regards the controversial Process & Industrial Developments (P&ID) deal.
Nigeria successfully convinced the UK Court that handled the matter that gas processing project was procured by a campaign of bribery and fraud hence halting the enforcement of the $11 billion arbitration award in favour of P&ID.
Process & Industrial Developments (P&ID) was awarded a 20-year contract in 2010 to construct and operate a gas processing plant.
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However, the British Virgin Islands-based company took Nigeria to arbitration when the deal could not fly, and actually secured a judgement in its favour awarding it $1billion in damages, which has risen to $11billion over the years.
Nigeria appealed the judgement.
In a judgment delivered by Justice Robert Knowles, it was held that the process through which P&ID secured the contract was fraudulent.
“In the circumstances and for the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations,” a copy of the judgement read.
“But the Awards were obtained by fraud and the Awards were 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. Section 68 (3) provides:“(3) If there is shown to be serious irregularity affecting the tribunal, the proceedings or the award, the court may (a) remit the award to the tribunal, in whole or in part, for reconsideration, (b) set the award aside in whole or in part, or (c) declare the award to be of no effect, in whole or in part.”
Reacting to the victory, President Tinubu in a statement by presidential spokesman, Ajuri Ngelale, lauded the UK Court for prioritising the merits of the case above all other considerations.
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The statement read: “This landmark judgment proves conclusively that nation states will no longer be held hostage by economic conspiracies between private firms and solitarily corrupt officials who conspire to extort and indebt the very nations they swear to defend and protect.
“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.
“Nigeria is appreciative of the tremendous efforts of the defense team and acknowledges the role of the Federal Ministry of Justice and the Office of the Attorney-General in the process of defending Nigeria’s interest in this case.”
