The Business and Property Court, in London, United Kingdom (UK) has scheduled today, Monday, October 23, as the date for delivering the verdict in the ongoing case between the Nigerian federal government and Process & Industrial Developments (P&ID) Ltd.
The judgment will be handed down by Judge Robin Knowles.
Recall that in 2010, P&ID entered into an agreement with Nigeria to construct a gas processing plant in Calabar, Cross River State. However, P&ID alleges that the deal fell apart due to the Nigerian government not fulfilling its obligations.
P&ID sought legal recourse, resulting in an arbitral award against Nigeria. In January 2017, a tribunal ruled that Nigeria should pay P&ID $6.6 billion in damages, along with pre- and post-judgment interest at 7 percent.
Following this judgment, Nigeria applied for an extension of time and relief from sanctions, which was granted by Judge Ross Cranston of the Business and Property Courts of England and Wales in September 2020.
Nigeria countered the gas deal as a fraudulent scheme, claiming that P&ID officials resorted to bribery to secure the contract. However, P&ID vehemently denied these allegations and accused the Nigerian government of propagating “false allegations and wild conspiracy theories”.
In a March trial, Nigeria further alleged that the contract was obtained through dishonest means, including bribery and perjury. They contended that the arbitration award, now escalated to $11 billion due to accrued interests, should be invalidated.
Six months after September, there were reports that P&ID representatives were actively seeking negotiations with the federal government for a potential out-of-court settlement. This development was driven by indications that Nigeria might obtain a favorable outcome in its legal challenge against the arbitral award. These efforts included reaching out to senior officials of the ministry of justice to influence President Bola Tinubu, who reportedly believes that P&ID’s case against Nigeria lacks merit.
