IN a significant development in the prolonged legal tussle between Nigeria and Process & Industrial Developments Limited (P&ID), a UK court has ruled in favour of Nigeria, awarding £20 million in damages.
This latest verdict follows Nigeria’s groundbreaking victory in October 2023 when the court invalidated an earlier fraudulent arbitration award of $11bn favouring P&ID. Arise News Channel reported that Nigeria sought restitution of at least £20 million from P&ID to cover damages and legal fees incurred during the dispute.
The court’s decision mandates P&ID to remit £20 million to Nigeria within 28 days, rejecting P&ID’s appeal to renegotiate the payment currency, solidifying the financial obligation in pounds sterling.
The protracted legal saga traces back to an unsuccessful 2010 agreement between Nigeria and Process & Industry Development (P&ID) Ltd to construct a gas processing facility in Nigeria’s southern region. Subsequently, a private arbitration tribunal in January 2017 directed Nigeria to make a substantial payment of $6.6 billion to P&ID, coupled with accrued interest dating back to March 20, 2013. This interest, fixed at seven percent, accumulated at a staggering rate of $1 million per day, inflating the potential payment to over $11 billion.
However, Nigeria contested the enforcement of the arbitration award, prompting the UK commercial court in September 2020 to grant relief, sending the case for further proceedings in the high court. Judge Robin Knowles of the Business and Property Court in London conducted the proceedings remotely and in private, ultimately ruling that the awards secured by P&ID were procured through fraudulent means, breaching public policy.
Following Nigeria’s landmark victory in October, P&ID attempted to resurrect their claims through new arbitration. Nevertheless, the High Court in London stipulated that the arbitration could proceed solely if the 2023 judgment remained valid and enforceable. This recent ruling underscores the court’s commitment to rectify fraudulent practices and uphold fairness in legal proceedings.
