Nigeria has every reason to thank the former President Muhammadu Buhari and his Attorney General and Minister of Justice, Abubakar Malami for insisting on fighting instead of consenting to blackmail to payoff P&ID in an out of court settlement
Emmanuel Thomas I Friday, Oct. 27, 2023
LAGOS, Nigeria – In a landmark legal battle that has spanned years, Nigeria emerged victorious against the Processing and Industrial Development (P&ID) company.
The recent ruling by a London court in favor of Nigeria marked a turning point in a complex saga that had the potential to plunge the nation into economic turmoil.
The story of Nigeria’s battle against P&ID dates back to a contract signed in the early 2000s.
Nigeria entered into an agreement with P&ID to develop a gas processing plant, but the project never materialized. Instead, it led to a protracted legal dispute.
Specifically, P&ID was to build gas pipeline while Nigeria will supply the gas. P&ID did not build any pipeline for supply of gas yet it argued that the contract failed because Nigeria failed to supply gas which it has in abundance.
Following the breakdown of the project, P&ID initiated arbitration proceedings against Nigeria, alleging breaches of the contract. The arbitration tribunal initially ruled in favor of P&ID, awarding them a staggering $6.6 billion.
Nigeria vehemently contested the arbitration award, asserting that the contract was fraught with corruption and irregularities. The government argued that it was not obligated to pay the massive sum awarded to P&ID.
At the commercial court in London, Nigeria intensified its efforts to challenge the arbitration award.
The court’s recent decision in favor of Nigeria and the cancellation of the massive debt came as a relief to the nation.
Had the judgment gone the other way, Nigeria would have faced dire economic consequences. It would have worsened Nigeria’s economy, including its foreign reserves, credit rating, and fiscal stability.
The P&ID case sheds light on the issue of corruption within Nigeria’s public and private sectors with many unpatriotic elements in government determined to line their pockets at the expense of Nigeria.
There is urgent need for government to take deliberate and concrete steps to prevent similar contractual disputes in the future.
The P&ID case serves as a cautionary tale for nations entering into international contracts and agreements.
Nigeria’s journey to secure the $11 billion judgment against P&ID represents a significant victory in a complex legal battle.
The ruling not only averted economic catastrophe but also highlighted the importance of transparency, good governance, and strong legal defenses in international business dealings.
Besides, Nigeria has every reason to thank the former President Muhammadu Buhari and his Attorney General and Minister of Justice, Abubakar Malami for insisting on fighting instead of consenting to blackmail to payoff P&ID in an out of court settlement.
As Nigeria moves forward, it must use this experience to strengthen its position in future negotiations and protect its national interests.
