Nigeria Wins In British Court As Judge Vacates $11 Billion P&ID Award. (Read Judgement)
A UK court released Nigeria on Monday from the entanglement of an $11 billion judgment debt that had been previously awarded in favour of Process & Industrial Developments (P&ID) Limited.
The judgement, which was rendered by Justice Robin Knowles of the Commercial Courts of England and Wales, endorsed Nigeria’s prayers that the gas processing contract had been fraudulently acquired in the dispute between the Federal Government of Nigeria and Process & Industrial Developments (P&ID) Limited.
Judge Knowles stated in the verdict rendered after a five-year legal dispute: “In the circumstances and 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. However, the awards were obtained by fraud, 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.
Citing Section 68 (3), Judge Knowles said: “‘(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, or (c) declare the award to be of no effect, in the whole or part. The court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters in question to the tribunal for reconsideration.’
“I was asked by Lord Wolfson KC in closing that should my judgement conclude in favour of Nigeria, as it does, to leave over the question of the order the court should make so that the parties have the opportunity to present argument once they have considered the judgement. I respect and will hear that argument as soon as that can be arranged.”
It is worth noting that P&ID and Nigeria reached an agreement in 2010 to construct a gas processing facility in Calabar, Cross River State. However, according to P&ID, the agreement caved in over the Nigerian government’s failure to honour its contractual obligations.
On the grounds that Nigeria had violated the contractual terms, P&ID pursued legal action and obtained an arbitral award against the nation.
A tribunal ruled on January 31, 2017, that Nigeria was obligated to compensate P&ID $6.6 billion in damages, in addition to seven percent interest both prior to and following the judgment.
Nigeria applied for an extension of time and relief from sanctions subsequent to the judgment.
In September 2020, Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted the application, thus resuming the arbitration proceedings.
Nigeria had asserted that the gas agreement was a fraudulent scheme designed to defraud the nation.
Federal government lawyers informed the court that P&ID officials had accepted bribery in exchange for the contract.
However, P&ID refuted the accusation and charged the Nigerian government with “irrational conspiracy theories and false allegations.”
Nigeria contended in a court trial in March that the contract had been procured through deceitful methods, such as bribery and perjury, and that the arbitration award, which has since increased to $11 billion due to interest, ought to be nullified.
Follow the link to read the judgement in full.
231023 FINAL Judgment – Nigeria v PID – as deliver_231023_142652
