The Federal Government of Nigeria has secured victory in its bid to overturn a $10bn arbitration judgement against it in a case against Process and Industrial Development.
In his judgement on Friday, September 4, Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria’s application for an extension of time and relief from sanctions.
However, the ruling did not specify the length of time for the extension in the dispute.
While delivering the judgement, the judge was of the view that Nigeria has established a strong prima facie case that the contract was procured by bribes paid to insiders as part of a larger scheme to defraud it.
He said there was also a strong prima facie case that the P&ID’s main witness in the arbitration, Michael Quinn, gave perjured evidence to the tribunal, and that contrary to that evidence, P&ID was not in the position to perform the contract.
On January 31, 2017, an arbitration tribunal had ruled that Nigeria should pay P&ID $6.6bn as damages and breach of contract after a 2010 deal for a gas project in the Niger Delta collapsed.
The pre and post judgement accrued interest of seven per cent has seen the amount standing against Nigeria rise to almost $10bn, an amount that will be a serious dent on the country’s external reserve.
Nigeria moved to upturn the judgement, alleging corruption in the award of the contract, which it also said was awarded on illegal terms.
In September 2019, a high-powered delegation from Nigeria was in the United Kingdom regarding the case in an effort to present a proper case for Nigeria.
A spokesman for Nigeria’s Attorney General, after the ruling, said that they would proceed to a full hearing of the case in the coming months.
He added that the country was firmly committed to overturning the award no matter how long it takes, to ensure the funds goes towards its future.
