P&ID Case: Why Nigeria Must Avoid Another Arbitral Award, Ex-Lawmaker Speaks
- President Bola Tinubu has received a call to capitalize on Nigeria's recent legal triumph in the British Commercial Court
- The victory saved the federal government of Nigeria a staggering $11 billion at a time when the country still battles economic hardship
- Ex-lawmaker Hon Robinson Uwak said the advantage of the must be channelled into immediate reform activities
- Legit.ng journalist Segun Adeyemi has over 9 years of experience covering political events, civil society, courts and metro
FCT, Abuja - President Bola Ahmed Tinubu has been urged to make the most of the recent legal win for Nigeria in the British Commercial Court against Process & Industrial Developments (P&ID).
In a judgment delivered on Monday, October 23, Justice Robin Knowles of the Commercial Courts of England and Wales nullified the $11 billion arbitration award favouring P&ID.
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The court ruled in favour of Nigeria, citing that the gas processing contract, which had gone awry, was procured through fraud.
Antecedents of P&ID case
In 2010, P&ID was granted a 20-year contract to build and operate a gas processing plant in Calabar, Cross River state, as part of a broader initiative to tap into Nigeria's abundant gas reserves.
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When the contract fell apart, P&ID pursued arbitration in London and, on January 31, 2017, was granted $6.6 billion in compensation for lost profits, which swelled to over $11 billion with accumulated interest from March 20, 2013.
At a fixed rate of seven per cent, this interest amounted to roughly $1 million per day, leading to the cumulative figure exceeding $11 billion before the recent court decision.
Ex-lawmaker reacts
Reacting to this development, former federal lawmaker Hon Robinson Uwak charged the federal government to channel the funds to urgent reforms.
According to a statement made available to Legit.ng on Wednesday, October 25, Hon Uwak said:
"The voiding of the sum, which would amount to half of our over N11 trillion, is a welcome relief to our dear country, Nigeria at a time of severe economic and social difficulties.
"I consider this lifeline given to us as a huge opportunity to save our foreign reserve, which has depleted considerably and revamp the potency of the naira.
"I equally see this as a mild rebuke to our domestic and external contracting where breaches are rife, and the corruption among some cadres of the civil service.
"These we must address by urgent reforms as there are still pending international arbitrations involving Nigeria."
In a congratulatory message to President Tinubu, the Akwa Ibom-born politician described the milestone as a welcome relief to Nigeria during a time of severe economic and social difficulties.
President Tinubu reacts as Nigeria wins P&ID case in UK court
Meanwhile, President Tinubu has responded to the victory of Nigeria over Process & Industrial Development (P&ID) Limited in the UK.
Tinubu applauded the landmark victory, stating that the UK Court prioritized the merits of the case above all other considerations.
He said the victory is for developing nation, which has suffered unjust economic malpractice and overt exploitation.
Source: Legit.ng
