A FORMER Nigerian civil servant, Grace Taiga, could potentially share in a substantial sum of damages if a British court rules against the West African nation in a precedent-setting case centred on a multi-billion dollar gas deal. The case revolves around the record-breaking $11.4bn awarded to offshore company Process & Industrial Developments (P&ID) by England’s High Court.
Court documents and testimonies reveal that Grace Taiga, the former head lawyer of Nigeria’s petroleum ministry, is among three Nigerians who could benefit financially if the court orders Nigeria to pay the awarded sum. Such a verdict would have far-reaching consequences for Nigeria’s economy.
In January 2017, a London-based arbitration panel ruled that Nigeria must pay $6.6bn in compensation to P&ID for breaching a contract awarded in 2010. This amount has since swelled to $11.4bn with interest. Nigeria has steadfastly refused to make the payment, alleging that P&ID bribed officials, including Grace Taiga, to secure the gas contract.
Following an eight-week trial that concluded in March of this year, the Nigerian government petitioned the High Court to invalidate the arbitration award. A decision from the court is expected in the coming weeks.
Experts warn that if Nigeria is compelled to pay the damages, it could have dire repercussions for the nation’s economy. ‘The negative shock would be monumental,’ cautioned Olusegun Vincent, an associate professor of finance at Pan-Atlantic University in Lagos State. He highlighted the risk that the government might struggle to meet its debt obligations.
The controversy surrounding this case traces back to the late 2000s when then-President Umaru Musa Yar’Adua’s administration aimed to address Nigeria’s energy supply crisis by exploiting vast untapped gas reserves in the Niger Delta region. P&ID proposed an ambitious project to the petroleum ministry, despite its lack of experience in such endeavours.
Grace Taiga played a central role in the negotiations, working on contract wording and recommending that the late Rilwanu Lukman, then the petroleum minister, sign a memorandum of understanding with P&ID in 2009. She also witnessed his signing of the gas contract the following year.
The contract stipulated that the Nigerian government would provide wet gas to P&ID free of charge over a 20-year period, with both parties sharing the processed resource. However, the project never materialised, leading to P&ID’s claim of breach and subsequent arbitration.
During the arbitration, evidence emerged that Grace Taiga had received approximately $10,000 from individuals and companies connected to P&ID prior to the contract signing. Taiga acknowledged receiving these payments but asserted that they were gifts from a family friend and P&ID co-founder, Michael Quinn.
While P&ID argued that it made efforts to execute the project, its inexperience and Taiga’s undisclosed payments raised suspicions of fraud within the Nigerian government.
The High Court will now consider these issues, and if Nigeria loses the case, the country would be legally obligated to pay P&ID an amount equivalent to eight times its 2023 federal health budget.
The allocation of the proceeds has remained confidential for some time. However, Grace Taiga, who initially denied any expectation of receiving money from the award, eventually disclosed, under oath in February 2023, that she indeed had expectations. When asked about the amount she expected from P&ID co-founder Brendan Cahill, she replied, ‘I did not put my mind on a particular ceiling.’
Documents revealed that Cahill had noted a ‘commitment’ of $200,000 to Taiga in October 2017, later increasing it to $500,000 in May 2019. Cahill clarified that these figures were not firm commitments but an assurance that Taiga would be looked after to some extent.
In court, Grace Taiga denied secretly aiding Quinn and Cahill during her tenure handling the gas contract at the petroleum ministry. Nevertheless, she now considers herself ‘part of the family’ associated with P&ID.
Anticorruption campaigners have raised concerns about the opaque arrangements surrounding the distribution of profits and their potential impact on Taiga’s credibility as a former public official.
Another individual, Adetunji Adebayo, executive chairman of Nigerian gas company GFD Energy, may be entitled to $1.4bn if the court rules in favour of P&ID. Mohammed Kuchazi, P&ID’s commercial director, claims a 3 percent share of the award, amounting to approximately $340 million, as per an agreement he said he reached with Quinn.
The Nigerian government has accused Adebayo and Kuchazi of bribing Nigerian officials on behalf of P&ID, allegations vehemently denied by both the company and Kuchazi.
With the High Court set to adjudicate on these matters, the outcome of this high-stakes legal battle could have profound implications for Nigeria’s financial stability and the future of those connected to the case.
(with Al Jazeera)