The Federal Government of Nigeria has recovered a $200 million bond and an additional $10 million legal award following its legal victory against Process and Industrial Developments Limited (P&ID) in a high-profile case adjudicated in the United Kingdom.
Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, announced the development, describing it as a monumental success in Nigeria’s pursuit of justice and financial sovereignty. The recovered funds had previously been deposited with the UK court as security while Nigeria challenged an $11 billion arbitration award initially granted to P&ID over a failed 2010 gas supply and processing agreement.
Fagbemi commended the legal team representing Nigeria, which included lead counsel Shaistah Akhtar and former Director of Legal Services at the Ministry of Justice, Kofo Salam-Alada. He praised their dedication, professionalism, and resilience, noting that the outcome reaffirms Nigeria’s position that the contract upon which the claim was based was fraudulent from inception.
“This victory not only saved the country from the burden of an unjust judgment but also reclaimed resources that can now be redirected towards national development,” the Attorney General stated.
The case, which drew global attention, originated from a controversial agreement signed in 2010 between Nigeria and P&ID to develop a gas processing plant in Calabar. However, the project failed to take off, leading P&ID to seek arbitration, where it was awarded $6.6 billion in 2017. The figure rose to $11 billion with interest by 2023.
In a major turnaround, a UK High Court in October 2023 ruled in Nigeria’s favor, determining that the contract was procured through bribery, corruption, and manipulation of the legal process. The ruling invalidated P&ID’s claim and opened the door for the Federal Government to retrieve the substantial financial guarantees held abroad.
Legal experts and international observers have hailed the outcome as a landmark moment in the fight against fraudulent commercial claims targeting developing nations. The successful defense is also viewed as a reinforcement of Nigeria’s capacity to defend its interests on the global stage.
With the $200 million bond and $10 million award now recovered, the Tinubu-led administration is expected to prioritize the reinvestment of these funds in critical sectors of the economy, as part of ongoing efforts to bolster fiscal stability and national development.
