Nigeria Wins as UK Court Rules that P&ID $11 Billion Arbitration Award is Fraudulent

Back in January 2010, Nigeria signed an agreement with Process and Industrial Developments (P&ID) Ltd to develop a processing plant in Calabar, Cross Rivers state. But things didn't go as planned. 

• By August 2012, P&ID failed to fulfil its obligations under the agreement, which led to private arbitration proceedings.
• On July 17, 2015, the arbitration tribunal ruled that Nigeria breached the contract. As a result, on January 31, 2017, Nigeria was ordered to pay P&ID approximately $6.6 billion, with interest accruing at a rate of 7% starting from March 20, 2013. 
• The total amount owed escalated to over $11 billion due to the accruing interest of $1 million per day.

President Muhammadu Buhari took action in June 2018 by directing the Attorney General to investigate the gas processing contract. Nigeria faced challenges along the way, but they remained determined. The Economic and Financial Crimes Commission (EFCC) even convicted P&ID and P&ID Nigeria on charges of fraud and money laundering.
In August 2019, Justice Butcher of the UK commercial court granted P&ID the right to seize Nigeria's assets, turning the arbitration award into an enforceable judgment. However, Nigeria appealed this decision.

Nigeria gained momentum when the English court allowed them to challenge the arbitration award in September 2020. Justice Cranston acknowledged that there was a strong case of fraud and recognized Nigeria's efforts to investigate the alleged wrongdoing.
On January 23, 2023, Nigeria presented a compelling argument in court. They asserted that P&ID and its associates were involved in bribery and corruption on a large scale.

After careful consideration, Justice Robin Knowles reserved the judgment until today. And now, the UK court has ruled in Favor of Nigeria, overturning the $11 billion arbitration award. The court agreed that the gas processing contract was obtained through fraudulent means. This victory marks a significant milestone for Nigeria in its fight against corruption and unjust financial burdens.