Rosalind Evans
In a significant turn of events, a British court ruled in favour of Nigeria, freeing the country from paying a massive $11 billion in damages over a failed gas project. On Monday, Justice Robin Knowles of the High Court in London overturned an arbitration award requiring Nigeria to pay the colossal to Process & Industrial Developments Ltd. (P&ID), a company based in the British Virgin Islands. The judge found that the contract for the 2010 gas deal was obtained through fraudulent means, thus reversing the award that had threatened to impact Nigeria’s already struggling economy severely.
Justice Knowles stated, “The awards (of the contract) were obtained by fraud … and how they were procured was contrary to public policy.” He pointed out three irregularities in the case: “P&ID providing evidence it knew was false in a witness statement, the company’s bribery or corrupt payment to a Nigerian civil servant, and the company’s ‘improper retention’ of Nigeria’s legal document, which it received during arbitration.” P&ID had originally secured the compensation award in 2017, initially amounting to $6.6 billion but subsequently growing to $11 billion with accrued interest. The company claimed the arbitration was for the loss of profit over the 20-year agreement. However, Nigerian officials contended that the contract was signed under dubious circumstances and accused P&ID of bribery and corruption, both in securing the contract and during the arbitration process.
The ruling marks a significant victory for Nigeria and its efforts to combat corruption and protect its economic interests. The decision by the London High Court sends a clear message that fraudulent practices and corruption will not be tolerated, upholding the principles of justice and integrity in international business dealings.
