Yesterday (Monday, October 23, 2023), Nigeria triumphed at the Business and Property Courts of England and Wales sitting in London, United Kingdom (UK). The court ruled in favour of Nigeria in the case filed by the country seeking the dismissal of an $11 billion arbitration award of Process & Industrial Development (P&ID).
Nigeria argued before the London High Court that it was a victim of bribery and deception in the controversial P&ID gas deal.
How the P&ID bribery scandal began
The P&ID scandal began in January 2010 when the firm signed a gas supply and processing deal on behalf of the Nigerian government with the Ministry of Petroleum Resources.
The deal called for P&ID to construct and manage an Accelerated Gas Development project in Adiabo, Odukpani Local Government Area, Cross River State. The Nigerian government planned to source natural gas from Addax Petroleum’s oil mining licenses (OMLs) 123 and 67 and deliver it to P&ID to convert into fuel suitable for power production in the country.
However, P&ID claimed that after signing the deal, the Nigerian government breached its obligations after beginning discussions with the Cross River State administration for land allotment.
According to the corporation, the inability to build the pipeline system to feed the gas hampered the building of the gas project, robbing it of the potential advantages of almost 20 years’ worth of gas supplies. It went on to say that attempts to settle out of court with the Nigerian government had failed.
What the court judgement meas
This was an enormous amount of money to pay for a country with a crushing debt burden. Nigeria, according to the Debt Management Office (DMO), recorded a public debt of N87 trillion in the second quarter of the year, soaring by 75% from Q1 2023.
With Nigeria’s debt profile, the $11 billion payment that P&ID was demanding would have had a significant negative impact on the country’s already fragile economy, making it more difficult for it to engage in economic projects. But the new court decision has revealed P&ID’s dishonest business practices in addition to sparing Nigeria from a massive financial burden.
The Nigerian government has accomplished a great deal with its victory over P&ID, which is evidence of its battle against injustice and corruption. This win sets a precedent for future negotiations with foreign businesses and frees the country’s debt profile from an unfair and deceptive arrangement.
Afro World News