Business
Just in: Nigeria wins as UK court dismisses $11 billion P&ID suit
Nigeria has won its bid to overturn an $11 billion damages bill involving the controversial Process & Industrial Developments (P&ID) deal.
In a judgment delivered by Justice Robin Knowles of the Commercial Court of England and Wales on Monday, it upheld Nigeria’s prayer on the ground that the ill-fated gas processing contract was obtained by fraud.
On January 31, 2017, a private arbitration Tribunal ordered Nigeria to pay $6.6 billion to P&ID plus interest beginning from March 20, 2013.
Following the judgment, Nigeria applied for an extension of time and relief from sanctions.
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The application was granted by Ross Cranston, a judge of the Business and Property Courts of England and Wales, in September 2020.
Nigeria had alleged that the gas deal was a scam conceived to defraud the country.
Lawyers representing the federal government of Nigeria 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.”
It had earlier been reported that the much-awaited judgment would be delivered today, October 23, in London, United Kingdom.
A private arbitration tribunal had on January 31, 2017 ordered Nigeria to pay $6.6 billion to P&ID plus interest beginning from March 20, 2013.
With the interest rate fixed at seven percent amounting to $1 million a day, the potential payment had accumulated to over $11 billion before the verdict.
