$9.6BN P&ID LIABILITY: Nigerian govt deposits $200m with British court

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.

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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.”

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