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Nigeria secures victory in $11 billion P&ID case in UK court

By  Milcah  Tanimu

In a significant legal victory for the Federal Government of Nigeria, the London court has ruled in favor of Nigeria in its long-standing legal battle with Process & Industrial Developments (P&ID) Limited. This judgment comes after five years of complex legal proceedings. The court quashed the $11 billion arbitration award that was initially awarded to P&ID.

Key details of the case:

1. **Basis of the Ruling**: The ruling, delivered by Robin Knowles, a Justice of the Commercial Courts of England and Wales, upheld Nigeria’s position that the gas processing contract, which had led to the massive arbitration award, was obtained through fraudulent means.

2. **Dismissal of Arbitration Award**: The UK judge dismissed the $6.6 billion arbitral judgment, which had later accumulated to $11.5 billion due to interests. This judgment was related to a failed contract involving the development of a gas processing plant.

3. **Fraud Allegations**: The ruling found that the awards obtained by P&ID were tainted by fraud, and the proceedings were contrary to public policy.

4. **Case Background**: The case revolved around a contract between Nigeria and P&ID in 2010 to build a gas processing plant in Cross River State. However, P&ID claimed that Nigeria had not fulfilled its obligations under the contract, leading to a legal dispute and the eventual arbitral award.

5. **Previous Arbitral Award**: In 2017, an arbitral tribunal had ruled that Nigeria should pay P&ID $6.6 billion in damages, along with pre- and post-judgment interest at seven percent.

6. **Extension of Time Granted**: Nigeria’s application for an extension of time and relief from sanctions was granted by Judge Ross Cranston in September 2020. This decision returned the case to arbitration.

7. **Fraud Allegations**: During the legal proceedings, Nigeria alleged that the entire gas deal was a fraudulent scheme designed to defraud the country. Lawyers representing the federal government argued that P&ID officials had paid bribes to secure the contract.

This ruling represents a significant victory for Nigeria and highlights the importance of addressing fraudulent practices in international agreements. It marks the culmination of a lengthy legal battle and underscores the government’s commitment to protecting the country’s interests.

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