Nigeria gets UK nod to appeal $10bn P&ID case

In a ruling by a United Kingdom high court, Nigeria has gotten the nod to appeal $10billion Process and Industrial Developments (P&ID) judgement.

It could be recalled that on January 31, 2017, a tribunal had ruled that Nigeria should pay P&ID $6.6billion as damages as well as pre and post-judgment interest at seven per cent which the current outstanding amount is estimated at $10billion

However, P&ID secured the judgement against Nigeria over a failed deal on gas supply accented by the former President Goodluck Jonathan and the Former Minister of Petroleum, Diezani Alison-Madueke and Rilwanu Lukman.

The nod to appeal the $10billion P&ID case was disclosed in a ruling on Friday in a High Court in London by Sir Ross Cranston: “Nigeria has established a strong prima facie case that the GSPA was procured by bribes paid to insiders as part of a larger scheme to defraud Nigeria.

“There is also a strong prima facie case that P&ID’s main witness in the arbitration, Mr Quinn, gave perjured evidence to the tribunal and that, contrary to that evidence, P&ID was not in the position to perform the contract.

“As to the jurisdiction and liability stages of the arbitration, there is a prima facie case that they were tainted by the conduct of Nigeria’s advocate, Mr Shasore.

“It seems to me that Nigeria has made a good case that, at the time it took part or continued to take part in the arbitration, it did not know and could not with reasonable diligence have discovered the grounds it now advances.”

In the judgment delivered on Thursday, 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.

TheCable understands that the case will either go back to arbitration based on the new evidence or both parties will now settle out of court.

“It is not my function at this preliminary stage to decide whether a fraud took place,” Cranston said.

“However, it has been necessary to consider a considerable amount of the material to decide firstly, whether, as Nigeria contended, there is a prima facie case of fraud and how strong that case is, and secondly, the steps Nigeria took to investigate the alleged fraud from late 2015.

“Both matters are relevant to the issues of whether Nigeria’s claim is barred altogether and whether time should be extended in its favour and relief from sanctions granted.”

On January 31, 2017, a tribunal had ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre- and post-judgment interest at 7 per cent.

The current outstanding amount is estimated at $10 billion.

The federal government had approached the court to establish that the contract was awarded on illegal terms.

Nigeria’s lawyers told the court in July that P&ID officials paid bribes to get the contract.

P&ID reportedly entered a gas supply and processing agreement with Nigeria in 2010.

Claiming Nigeria breached the terms of the contract, it took a legal recourse and secured an arbitral award against the country.

Nigeria has been making moves to overturn the judgement and has gotten court clearance to request documents from a P&ID stakeholder and review bank statements of ex-President Goodluck Jonathan, Diezani Alison-Madueke and Rilwanu Lukman, former ministers of petroleum.

The Economic and Financial Crimes Commission (EFCC), on August 18, arraigned James Nolan, a Briton, and six companies over their alleged involvement in the contract.