The Federal Government of Nigeria on Thursday complied with the order of a British court and deposited a bond of $200 million to enable the court hear the appeal on the $9.6 billion awarded the Process and Industrial Development (P&ID) company for a failed gas supply and processing contract.
The Attorney General of the Federation and Minister of Justice, Abubakar Malami, confirmed the payment of the money in a statement issued late on Thursday night.
Malami, who described the development as a positive step for Nigeria to set aside the judgement, said the decision to provide the bond emanated from the British court’s acceptance of a request from Nigeria for a variation of the September ruling of the court.
The British court had ordered the Nigerian government to pay $200 million to the court to enable it hear appeal against the award of the $9.6 billion to the Irish firm.
The court also ordered a stay of execution of the judgment and granted the government’s request for appeal in October.
The statement said: “The Federal Republic of Nigeria today provided the English High Court with a bank guarantee as security in compliance with the court order.
“This variation in security, which was proposed by Nigeria as an alternative solution during a procedural hearing on 22nd November, has been accepted by the Court and P&ID. The deadline was extended by the Court to the 28th November.
“The provision of today’s security is a positive step forward for Nigeria to overturn the injustice of the $9.6 billion award, which was a direct result of fraud and corruption.”
“Over the last few weeks, investigations have revealed a very serious fraud, bringing into question both the legitimacy of the GSPA (gas supply and processing agreement) and the subsequent award itself.
“As a result of these investigations, the Federation has recently expanded its legal team, which will now enable us to launch in full our challenge against the fraudulently procured agreement and award.”
Join the conversation
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...