The English Commercial and Arbitration Court in London, has granted Nigeria leave to file an appeal against the award of $9.6 billion against the Federal Government of Nigeria, in favor of Process and Industrial Developments (P&ID). The Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami, said.
Few days ago, it was announced that Nigeria had lost about $9.6 billion to an Irish firm simply because we couldn’t keep our own part of an agreement ,if really it was an agreement . It’s difficult to blame a specific individual for this because when and how this contract was signed is shrouded in mystery. A few suggests it was signed at the time the late President Musa Yar’adua was in coma . Whoever signed it! Anyway, I don’t believe in ghosts.
He also disclosed that the court also ordered Nigeria to pay a security sum of $200 million for the court to grant a stay of execution of the ruling pending the judgement of the appeal.
“Stay of execution has been granted subject to payment of $200 million security payment to the court pending the determination of the appeal for the leave to appeal which has been granted by the commercial court.
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“Application for leave to appeal against the award and enforcement of the award is granted.” He said
P&ID was awarded $9.6 billion in damages following a failed Gas Supply Agreement contract it had with Federal Ministry of Petroleum Resources.
The Federal Government of Nigeria launched an investigation into the contract and discovered massive fraud by representatives of P&ID in Nigeria. Upon the discovery, the Economic and Financial Crime Commission (EFCC) filed charges against the culprits which they pleaded guilty to.
The guilty plea and subsequent sentences provided a ground for Nigeria to challenge the outcome of the first hearing. Nigeria is desperately trying to mitigate the consequences the ruling will impact.
With P&ID assets in Nigeria nationalized, legal experts believe that Nigeria has a better chance to turn things round. The recent development in London has given hope to such belief.