Nigeria Seeks to Claim Damages After P&ID’s $11bn Court Victory

In a significant development in the legal saga between Nigeria and Process & Industrial Developments Limited (P&ID), the Nigerian government has announced its intention to seek damages from the global firm.

This move comes after a UK court ruling that effectively halted the enforcement of an $11 billion arbitration award in favor of P&ID.

The Business and Property Court in London, presided over by Justice Robert Knowles, delivered a landmark judgment that found the process through which P&ID secured a 2010 contract to build a gas processing plant in Calabar was fraudulent. The arbitration court had initially awarded $6 billion against Nigeria in 2017 over the failed gas processing contract, but this amount had accumulated to $11 billion with accrued interest.

P&ID had argued that Nigeria violated the terms of their agreement by failing to provide gas for the proposed power plant, which they had planned to construct. The tribunal had unanimously concluded that Nigeria had repudiated the Gas Supply and Processing Agreement, leading to the $11 billion award.

The legal dispute stemmed from a 2010 gas project agreement and had significant financial implications for Nigeria, with concerns over the potential seizure of national assets and monetary reserves. The recent court ruling has, in essence, freed Nigeria from this financial burden.

The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, highlighted that the UK court will conduct further hearings to determine the costs payable by P&ID and other involved parties. This marks a crucial step in the ongoing legal process.

Justice Knowles’ ruling not only addressed P&ID’s actions but also pointed to deficiencies on both sides, including issues with legal representatives, experts, and government officials. The judgment underscored the importance of upholding public policy and ensuring that all parties involved present a robust legal and factual case.

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This legal victory has brought relief to Nigeria and will enable the country to move forward in seeking damages from P&ID, underlining the significance of safeguarding national interests and legal integrity.

The ruling has been celebrated by various quarters, including Nigeria’s government and President Bola Tinubu. The President described the verdict as liberating and a triumph over unjust economic practices. He commended the Nigerian legal team and recognized the Federal Ministry of Justice and the attorney general’s office for their role in defending the country’s interests throughout this protracted legal battle.

This development signals a turning point in a complex and long-running legal dispute, with far-reaching implications for similar cases involving public policy, international contracts, and the pursuit of justice.