In a significant legal triumph, the Nigerian government has successfully recovered $210 million in connection with the protracted legal dispute involving Process and Industrial Developments Limited (P&ID). This amount comprises a $200 million bond and a $10 million award previously deposited with a United Kingdom court during the litigation process.
Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, announced the recovery following a meeting with the legal team that represented Nigeria in the case. He commended the team’s dedication and highlighted the instrumental roles played by lead counsel Shaistah Akhtar and former Director of Legal in the Ministry of Justice, Kofo Salam-Alada.
“The entire nation has celebrated our success in the P&ID case,” Fagbemi stated. “Many may not know that my strength was derived from the dedication and uprightness of the coordinating team led by Kofo Salam-Alada, who provided the necessary support.”
The P&ID case originated from a failed gas processing agreement between the Nigerian government and P&ID, a British Virgin Islands-based company. In 2010, P&ID entered into a 20-year contract with Nigeria to build and operate a gas processing facility. However, the deal collapsed, leading P&ID to seek arbitration, claiming Nigeria breached the contract. In 2017, a UK tribunal awarded P&ID $6.6 billion in damages, which, with interest, escalated to over $11 billion.
Nigeria challenged the award, alleging fraud and corruption in the contract’s procurement. In October 2023, the UK High Court ruled in Nigeria’s favor, setting aside the arbitration award and acknowledging evidence of bribery and perjury by P&ID.
During the recent meeting, Akhtar explained that $10 million of the $20 million awarded to Nigeria had been recovered, with the remaining $10 million subject to ongoing legal proceedings. She noted that Nigeria’s success in overturning the arbitration award was among the 14% of such awards that are successfully challenged.
The recovery of these funds marks a significant milestone in Nigeria’s efforts to combat corruption and uphold the rule of law. It also underscores the importance of due diligence and transparency in government contracts.
As Nigeria continues to navigate complex legal and economic challenges, the outcome of the P&ID case serves as a reminder of the critical role of robust legal frameworks and vigilant oversight in safeguarding national interests.
