A United Kingdom court has awarded £20 million damages in favour of Nigeria against Process & Industrial Developments (P&ID). The court directed P&ID to pay the sum to Nigeria within the next 28 days.
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The award of the £20 million as damages was disclosed during a consequential ruling on the matter that took place in London on Friday.
Arise News Channel reported that Friday’s hearing which came after Nigeria’s victory in an US$11 billion judgement debt in October, was to find out if P&ID would be given permission to appeal the case.
The court did not grant P&ID permission to take the matter back to arbitration, saying that the company’s conduct during the process was reprehensible and therefore it completely set aside the $11 billion judgment.
“Nigeria was seeking at least £20 million back from P&ID to cover its damages and legal fees. Essentially, what P&ID lawyers were trying to do was to try and limit the amount it would pay to Nigeria as damages and they fought hard to see if it would be in naira. But the court ruled that they must pay £20 million to Nigeria and it must come in 28 days. Then came the request for appeal. Their request for appeal on the currency at which they were going to pay Nigeria was also denied. So, in 28 days, P&ID must pay Nigeria at least 20 million pounds,” Arise News Channel reported.
Timeline of the case between Nigeria and P&ID – The cable
January 11, 2010: Process and Industrial Developments (P&ID) Ltd signs a gas supply and processing agreement (GSPA) with Nigeria to develop a processing plant in Calabar, Cross River state.
August 22, 2012: The GSPA collapses as P&ID fails to do any work. P&ID begins private arbitration proceedings against Nigeria at the London Court f International Arbitration, seeking US$5.96 billion as compensation.
July 17, 2015: The arbitration tribunal finds that Nigeria breached the contract.
January 31, 2017: The tribunal orders Nigeria to pay P&ID about US$6.6 billion. Interest of 7 percent to start counting from March 20, 2013.
January 28, 2018: Abubakar Malami, then Nigeria’s attorney-general, is directed by President Muhammadu Buhari to investigate the GSPA.
August 16, 2019: Justice Butcher of the UK commercial court says he would grant P&ID the right to seize Nigeria’s assets, effectively converting the arbitration award to an enforceable judgement. Nigeria decides to appeal.
September 19, 2018: The Economic and Financial Crimes Commission (EFCC) secures criminal conviction against P&ID and P&ID Nigeria on charges of fraud and money laundering.
September 20, 2019: Grace Taiga, a former director for legal services at the petroleum ministry is remanded in Suleja prison over allegations of bribery and failing to follow due process in giving legal advise on the GSPA.
October 22, 2019: The EFCC charges two Britons related to P&ID to court with 16 counts of money laundering over the failed GSPA.
November-December, 2019: Justice Cranston agrees that the award of the contract and the arbitration fine should be properly scrutinised. Nigeria provides evidence to argue that the GSPA was secured through fraud and corruption.
September 4, 2020: Big break for Nigeria as the English court allows Nigeria to challenge the arbitration award. The case goes back to the high court for trial.
December 22, 2021: Breden Cahill, one of the promoters of P&ID, is detained following investigations into the alleged bribery of Nigeria officials over the GSPA.
January 23, 2023: Nigeria’s substantive application to set aside the arbitration award is heard by Justice Robin Knowles as fraud trial begins.
March 9, 2023: Nigeria makes its final case that P&ID and its associates are guilty of bribery and corruption on an “industrial scale.” Judgement is reserved.
October 23, 2023: Knowles rules in favour of Nigeria, agreeing that the arbitration awards “were obtained by fraud and the awards were, and the way in which they were procured, contrary to public policy.”
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
