25.1 C
Monday, July 22, 2024

London court nullifies $11 billion claim against Nigeria in P&ID gas project dispute

High Court Cites Bribery and Non-disclosure, Marking a Historic Victory for Nigeria and a Blow to Economic Exploitation

Must read

A London court has dismissed an $11 billion damage claim against Nigeria by Process & Industrial Developments Limited Gas Company (P&ID), stemming from a collapsed gas processing project in Cross River, Nigeria. The ruling, delivered by the High Court in October, revealed that P&ID had engaged in bribery and failed to disclose these activities during arbitration, providing a significant legal victory for Nigeria.

The potential payment of $11 billion, approximately one-third of Nigeria’s foreign exchange reserves, was averted as the court established that P&ID had paid bribes to a Nigerian oil ministry official in connection with the 2010 gas contract. The project’s subsequent failure led P&ID to take Nigeria to arbitration.

Described by Nigerian President Bola Tinubu as a blow against economic malpractice and the exploitation of Africa, the court’s decision offers relief to Africa’s largest economy grappling with mounting debt, high inflation, and unemployment.

P&ID, seeking a return to arbitration, faced another setback as Judge Robin Knowles ruled on Thursday to dismiss the award immediately. The judge denied P&ID permission to appeal, effectively concluding the case, as the company cannot apply for permission from the Court of Appeal.

A London-based spokesperson for the Nigerian government stated, according to Reuters, that the decision “marks the conclusion of a historic victory for the people of Nigeria.”

The legal battle originated from a 2010 gas deal gone awry between Nigeria and P&ID, a British Virgin Islands-registered firm founded by two Irish businessmen. The company had initially been contracted for military repairs, but in 2010, it secured a 20-year contract to process gas for Nigeria’s domestic energy market.

Following arbitration in 2012, P&ID was awarded $6.6 billion, which later escalated to over $11 billion with interest. However, the recent court ruling seems to definitively quash the company’s avenues for legal recourse in the dispute.

More articles


Please enter your comment!
Please enter your name here

Latest article