The Federal Government of Nigeria, through the Office of the Attorney General of the Federation, announced on Thursday that it has recovered a $200 million bond paid in arbitration prior to its victorious case against Process and Industrial Development (P&ID) regarding the $11 billion award.
The Nigerian government also expects to recover its legal costs incurred during litigation, which are worth “tens of millions” of pounds.
This was emphasized at a press briefing on Thursday at the OAGF Headquarters by the Attorney General of the Federation, Lateef Fagbemi SAN; National Coordinator, FRN Legal & Investigation for P&ID, Mr. Kofo Abdulsalam-Alada; and the P&ID Head of Litigation Team for FRN, Shaistah Akhtar.
The briefing was attended by Nairametrics.
Nairametrics previously reported that a court in London had quashed the $11 billion award against Nigeria in the widely discussed P&ID case, which concerned a purported gas processing plant agreement with the Nigerian government in 2010.
$200 Million Released to FG
Speaking to the press and the P&ID case team, Fagbemi acknowledged the dedication and integrity of the FGN-P&ID coordinating team, led by Kofo Salam-Alada, highlighting the essential support provided by the team.
- He stated that the favorable outcome of the case resulted in the release of Nigeria’s $200 million bond.
“For completeness, I want to say that before we went into this arbitration, there was a demand for a deposit or bond of $200 million, which Nigeria paid. After our success, this bond was released, he said.
- The AGF highlighted that the P&ID case presented an unprecedented challenge, threatening to impose a colossal financial burden on the Nigerian people.
- He added that the team’s ability to navigate the complexities of international arbitration, expose the fraudulent foundations of the initial award, and ultimately secure a favorable judgment is a testament to their outstanding expertise and unwavering resolve.
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On his part, Kofo Abdulsalam-Alada, who also served as the CBN Legal Director, said that the legal victory ensures similar transactions will not happen again.
“And there are similar things still going on behind the scenes, and the government, having done this in the case of P&ID, is also resolved that we are going to toe the same line and never enter into settlements with this type of people”, he added.
- He assured that the FG’s P&ID team is on course to recover all monies spent on the matter.
“Let it be known that these people not only lose in the courts; they’re also going to lose the amount that we spent defending this country, because they are going to pay back, and they have actually started paying back.
“ And it’s a lesson, sending a signal to others who attempt to drag Nigeria through this route that they will be made to pay,” he added.
- On her part, Akhtar assured that all legal costs in the matter will be recovered.
“But as a successful party, the government is also entitled to recover its legal costs, which amount to tens of millions of pounds, and which the government is well on its way to doing,” she said.
- She further disclosed that soon after the judgment was handed down, the trial judge in the UK ordered an interim payment of £20 million on account of Nigeria’s costs.
- She added that £10 million has been paid, while the balance is awaiting final review by the Supreme Court in July this year.
“P&ID and their funders initially delayed in making that payment, and we put them under pressure. The result is that £10 million has been paid, and the balance of £10 million has been stayed by the court pending a challenge brought by P&ID on the currency in which the government coffers should be settled,” she said.
- She said the pending P&ID challenge has already been rejected by the High Court and is due to be determined by the Supreme Court in July 2025.
Backstory
In 2010, Process & Industrial Developments (P&ID) secured a 20-year contract to build and operate a gas processing facility in southern Nigeria.
- P&ID entered into an agreement with Nigeria to build a purported gas processing plant in Calabar, Cross River State, but the company claimed the deal collapsed because the Nigerian government allegedly did not fulfill its end of the bargain.
- On January 31, 2017, a tribunal ruled that Nigeria must compensate P&ID with $6.6 billion in damages, along with pre- and post-judgment interest at a rate of 7%.
However, in court, federal government lawyers argued that P&ID executives had used bribery to secure the contract.
In October 2023, the Business and Property Court in London, presided over by Justice Robin Knowles of the Commercial Courts of England and Wales, quashed the $11 billion award against Nigeria in the P&ID case, describing it as fraudulent.
A UK court also mandated Process & Industrial Developments (P&ID) Limited to pay Nigeria £20 million as damages and compensation following Nigeria’s victory in the $11 billion judgment debt previously heard.
