Nigeria scores legal victory as P&ID to pay judgement costs in Pounds Sterling

In a significant legal victory for Nigeria, the United Kingdom Court of Appeal has ruled that Process and Industrial Developments Limited (P&ID) must pay the country’s legal costs associated with their failed gas processing contract dispute, and crucially, those costs must be paid in British Pounds Sterling (GBP).
This was contained in a statement by the Special Assistant to the President on Communications and Publicity, Office of the AGF, Kamarudeen Ogundele, on Friday.
Ogundele stated that the AGF lauded the U.K Appellate Court’s decision that rejected P&ID’s request to pay the judgment cost in Naira which would have reduced the legal cost by a wide margin.
He described the request to pay the fees in naira as another desperate attempt to defraud Nigeria, saying the court’s refusal is another victory won against corruption.
“The Hon. Attorney-General of the Federation, Lateef O. Fagbemi, (SAN) is delighted at a report just received from our UK solicitors on the latest victory recorded by Nigeria in its fight against corruption and extortion by litigation hawks. Consequent to our success in defeating the fraudulent USD 11 billion claim by P&ID last year, Nigeria is continuing its efforts to recover its substantial costs from P&ID and its vulture fund backers.
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“Today (being the 12th day of July 2024), the United Kingdom Court of Appeal validated Nigeria’s claim for the post-judgment costs to be paid in Pound Sterling (GBP), which P&ID tried to reduce drastically by claiming that Nigeria should only be entitled to recover its costs in Naira, which evidently will produce a much lower cost.
“This was another misconceived and desperate attempt by fraudsters to deprive the Nigerian people of hard-earned public revenue. As a government, we are very determined to recover these costs and make P&ID and its US funders pay for their scam so as to serve as a deterrence to others of their ilk. We commend the dedication and tenacity of our legal team for this accomplishment,” the statement read.
This decision comes after a tumultuous legal battle. P&ID, a British Virgin Islands-registered company, initially secured a $11 billion judgement against Nigeria in 2019 at an arbitration tribunal in London. Nigeria vehemently contested the award, arguing the contract was a sham and P&ID had no real investment in the project.
A Win on Two Fronts
The latest ruling holds a double win for Nigeria. Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, hailed the decision, highlighting the importance of the currency used for payment. By demanding the costs be paid in Pounds Sterling, Nigeria avoids significant devaluation due to exchange rate fluctuations.
A Blow to P&ID’s Finances
The ruling is a substantial financial blow to P&ID. The exact amount of legal costs is unknown, but it is likely to be a significant sum. This decision, coupled with the ongoing legal challenges to the original $11 billion judgement, puts P&ID’s financial viability further in question
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