P&ID vs Nigeria
The judge gave the order on Thursday when Nigeria appeared before in a hearing held to decide procedural and costs issues relating to the FRN’s applications to challenge the arbitration award and to determine the short-term directions to trial.
This latest order follows the major victory it secured on Friday last week when the court allowed the country to bring a fraud challenge against a $9.6 billion arbitration award obtained by vulture-fund-backed P&ID well outside the normal time limits.
“This is another crucial win for Nigeria in our ongoing fight against the vulture-fund-backed P&ID,” a spokesperson for the Attorney General of the Federation said in a statement announcing the latest development.
“We are pleased that the English Courts have taken our fraud challenge seriously, and awarded us a substantial interim payment in respect of our successful application for an extension of time to challenge the award.”
With the order, Nigeria will now proceed to a full fraud trial, in its quest to avoid paying the arbitration award which is estimated to be one-third of the national budget.
The Nigerian government considers the order a “significant blow” to P&ID as will help speed up the trial and halt what it says are attempts by the company to delay the process.
“To date, P&ID and its financial backer VR Capital have not produced a single document or credible witness to challenge the FRN’s fraud evidence,” it said of the attempts.
“Instead, they continue to resort to disseminating misleading claims, while taking every step possible to delay or obstruct our investigations across multiple jurisdictions.”
The Nigerian government has maintained over time that the contract that led to the arbitration was fraudulent and that it would work relentlessly to overturn.
After securing two favourable court decisions, it restated the commitment to overturning “the injustice”, saying it “will not rest until we secure justice for the people of Nigeria – no matter how long it takes. Investigations into the GSPA are ongoing, and we are confident that more of the truth will be revealed over the coming months.”
P&ID, a firm based in the British Virgin Islands, won a $6.6 billion arbitration award against the Nigerian government after the 2010 gas project collapsed.
The award accrued interest since 2013 and is now worth more than $9 billion.
However, Nigeria on September 3, secured a landmark victory in its pursuit to overturn a $10 billion judgment awarded against it in a case against P&ID in a failed gas deal in 2010.
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, in the nation’s bid to overturn a $10 billion judgement awarded against it.
