Nigeria Triumphs in a Five-Year Legal Battle Against P&ID LTD In A London Court On Monday

Nigeria has won the five year old legal case against Process & Industrial Developments (P&ID) limited in a London court on Monday.

In a ruling delivered by e-mail, Robin Knowles, the justice of the commercial courts of England and wales, upheld Nigeria’s prayer on the ground that the ill-fated gas processing contract was obtained by fraud.

The court quashed the $11 billion arbitration award in favour of P&ID.

P&ID had agreed with Nigeria in 2010 to build a gas processing plant in Calabar, but the company said the contract failed because the Nigerian government did not fulfill its end of the bargain.

Claiming Nigeria breached the terms of the contract; P&ID sued Nigeria and secured an arbitral award against the country.

In January 2017, a tribunal ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre-and post-judgment interest at seven per cent.

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Following the judgment, Nigeria applied for an extension of time and relief from sanctions.

The application was granted by Ross Cranston, a judge of the Business and Property Courts of England and Wales, in September 2020, thereby returning the case to arbitration.

Nigeria had alleged that the gas deal was a scam conceived to defraud the country.

Lawyers representing the federal government told the court that P&ID officials paid bribes to secure the contract.

But P&ID denied the allegation and accused the Nigerian government of “false allegations and wild conspiracy theories”.

In a March trial at the court, Nigeria alleged that the contract was secured through dishonest means that included bribery and perjury and that the arbitration award, which has now risen to $11 billion because of interests, should be quashed.