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The Federal Government of Nigeria has secured a judgement of the Commercial Courts of England and Wales to halt the enforcement of the $11 billion arbitration award to Process and Industrial Developments (P&ID).
TheNewsGuru.com (TNG) reports Robin Knowles, justice of the Commercial Courts of England and Wales delivered the judgement in the case marked CL-2019-000752 by email after over five years of legal fireworks.
The Federal Government of Nigeria had asked the court to overturn an arbitration award in favour of P&ID, which after accruing interest, was worth $11 billion.
P&ID claimed it entered into an agreement with Nigeria to build a gas processing plant in Calabar, Cross River State, but the deal collapsed because the Nigerian government did not fulfil its end of the bargain.
In the judgement by Justice Knowles, the court upheld Nigeria’s prayer on the ground that the ill-fated gas processing contract was obtained by fraud.
Recall a private arbitration tribunal had on January 31, 2017 ordered Nigeria to pay $6.6 billion to P&ID plus interest beginning from March 20, 2013.
With the interest rate fixed at seven percent amounting to $1 million a day, the potential payment had accumulated to over $11 billion before the verdict.