Good News for Naira, Tinubu’s Govt As Nigeria Wins P&ID $11bn Suit in UK Court
- A UK court has dismissed the case against Nigeria by Process & Industrial Developments (P&ID) Ltd
- The case has been on since 2010 following a collapsed deal in which the company wants $11 billion in compensation
- P&ID, a little-known British Virgin Islands-based company, took Nigeria to arbitration over the collapsed deal
Nigeria has won its bid to overturn $11 billion damages suit brought by Process & Industrial Developments (P&ID) Ltd for a collapsed gas processing project in 2010.
The deal collapsed after federal government officials claimed bribery in the procurement process.
Source: Facebook
In his judgement via email, Judge Robin Knowles of the Business and Property Court in London on Monday, October 23, 2023, held that P&ID obtained its multi-billion-dollar arbitration award against Nigeria by fraud.
Background of the case
P&ID was awarded a 20-year contract in 2010 to construct and operate a gas processing plant in Calabar, Cross River state, as part of a wider plan to exploit Nigeria's abundant gas reserves.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
After the deal collapsed, P&ID took Nigeria to arbitration in London and, on January 31, 2017, was awarded $6.6 billion for lost profits – a sum swelled with interest to over $11 billion beginning from March 20, 2013, the Nation reports.
With the interest rate fixed at seven per cent, amounting to $1 million daily, the potential payment had accumulated over $11 billion before the verdict.
Nigeria had alleged that the gas deal was a scam conceived to defraud the country.
Federal government lawyers 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."
The implication of the big win
Nigeria was on the hook for the sum – representing around a third of the Central Bank of Nigeria's foreign exchange reserves.
If Nigeria had lost the case, it would have been another massive burden to the country battling to get foreign exchange to save naira.
Otedola strikes billion naira deal with Elumelu to exit Transcorp
Meanwhile, in another report, Legit.ng reported that Nigerian billionaire Femi Otedola ended the battle with Elumelu over control of Transcorp Plc.
Transcorp is a diversified conglomerate interested in energy, hospitality, and agriculture.
The mutual agreement saw Otedola receive a payout of N32.5 billion two weeks after spending N6 billion to acquire 2.6bn shares.
Source: Legit.ng
