Anti-Corruption Body, EFCC Applauds UK Court for Dismissing $11.5 Billion Judgment Against Nigeria in P&ID Contract Scam

admin October 24, 2023
Updated 2023/10/24 at 8:26 AM

The Economic and Financial Crimes Commission (EFCC) has expressed its approval of the dismissal of the unjust $6.6 billion judgment against Nigeria, which was awarded to Process & Industry Development (P&ID) Ltd due to a failed 2010 gas processing plant deal.

UK Judge Robin Knowles, presiding over the Business and Property Court in London, declared that the award was acquired through fraudulent means and goes against public policy.

Previously, the EFCC had been in a legal dispute with P&ID over a $9 billion judgment against Nigeria, which has now escalated to $10 billion.

P&ID accused Nigeria of not fulfilling its obligations in providing gas for the power plant they planned to construct.

This alleged breach of agreement hindered the progress of the gas project, which was initially endorsed by the government of former President Umaru Yar’Adua, and resulted in P&ID being deprived of the expected benefits from 20 years of gas supplies, with anticipated profits ranging from $5 to $6 billion.

In 2017, an arbitral tribunal unanimously ruled that the Nigerian government had effectively renounced the Gas Supply and Processing Agreement (GSPA) by failing to meet its contractual responsibilities, and subsequently awarded P&ID $6.6 billion.

The amount owed, including interest, has now increased to $11.5 billion. The previous administration had initially agreed to pay $850 million outside of the tribunal, which was then passed on to President Muhammad Buhari’s administration.

However, Buhari refused to pay the negotiated amount and disregarded the settlement agreement, instead challenging the enforcement of the award in the English Commercial Court. The court ultimately added $2.4 billion in interest, bringing the total to $9 billion.

While the court granted Nigeria’s request to postpone any asset seizures during their legal challenge, they were ordered to pay $200 million to the court within 60 days to maintain the stay. Additionally, Nigeria must cover some of the court costs for P&ID within 14 days.

The court’s decision transformed an arbitration award held by P&ID into a legal judgment, granting the British Virgin Islands-based firm the opportunity to seize international assets.

Nigeria, annoyed by P&ID’s claims, launched an investigation into the company through the EFCC. During the investigation, evidence of two bank transfers totaling $20,000 was discovered.

These transfers were made by Dublin-based Industrial Consultants (International) Ltd., a member of the P&ID group of companies, to Grace Taiga, a Nigerian government lawyer in charge of awarding the gas plant contract.

The EFCC, represented by Bala Sanga, contested these payments and stated that they were allegedly for “medical expenses,” originating from an industrial consultant’s account at Allied Irish Banks in 2017 and 2018.

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