In a significant legal victory, the Federal Government of Nigeria has won its case against Process and Industrial Developments Company (P&ID) in a London court, presided over by Justice Robin Knowles. The court ruled to overturn a $6.6 billion arbitration award in favor of P&ID in 2017. With accrued interest, this award had swelled to approximately $11 billion. Furthermore, the court cleared Mr. Olasupo Shasore (SAN), a former Attorney-General of Lagos State, of bribery charges related to his representation of Nigeria in the arbitration.
Background of the Dispute: The dispute stemmed from a 2010 gas supply and processing agreement between P&ID and Nigeria, which aimed to establish an Accelerated Gas Development project. When the project failed to materialize, P&ID accused Nigeria of breaching the contract, leading to a $10 billion compensation ruling in 2015.
Legal Journey:
- In 2017, an arbitral tribunal awarded P&ID $6.6 billion.
- Former President Goodluck Jonathan’s government negotiated a settlement of $850 million, but President Buhari refused to pay and challenged the enforcement in court.
- The London court later increased the award to $9 billion, including interest.
Landmark Ruling:
- Justice Knowles ruled that the award was obtained fraudulently and against public policy.
- Mr. Shasore was cleared of corruption charges, with the judge acknowledging his diligent efforts to serve Nigeria’s interests.
AGF’s Statement: Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, expressed satisfaction over the judgment, emphasizing that it was a victory against corruption and predatory international investors. He revealed that P&ID had attempted an out-of-court settlement with Nigeria, which was declined.
President Bola Tinubu’s Commendation: President Tinubu applauded the UK Court’s decision, calling it a landmark victory not only for Nigeria but for developing nations globally. He praised the defense team and government agencies for their collaborative efforts.
Presidential Candidate’s Reaction: Presidential Candidate of the Social Democratic Party (SDP), Prince Adewole Adebayo, hailed the judgment as well-deserved justice, saving Nigeria from an unjust $11 billion payout.
Conclusion: The court’s ruling in favor of Nigeria marks a crucial milestone in safeguarding the nation’s interests against exploitative practices. It serves as a deterrent to fraudulent dealings and upholds the principle of justice in international contracts.