Nigeria wins legal victory as P&ID pays ruling costs in pounds

In a significant legal victory for Nigeria, the UK Court of Appeal has ruled that Process and Industrial Developments Limited (P&ID) must pay the country’s legal costs associated with a failed gas processing contract dispute, and crucially, those costs must be paid in British Pounds Sterling (GBP).

This was stated in a statement by the Special Assistant to the President for Communications and Publicity, Office of the AGF, Kamarudeen Ogundele, on Friday.

Ogundele stated that the AGF commended the decision of the UK Court of Appeal to dismiss P&ID’s request to pay the costs of the judgment in Naira which would significantly reduce legal costs.

He described the demand to pay fees in naira as another desperate attempt to defraud Nigerians, and said the court’s rejection was another victory achieved against corruption.

“The Honourable Attorney General of the Federation, Lateef O. Fagbemi, (SAN) is delighted with the report just received from our lawyers in the United Kingdom regarding the latest victory recorded by Nigeria in its fight against corruption and extortion by litigants. Consequent to our success in defeating the $11 billion fraud claim by P&ID last year, Nigeria continues to seek to recover its huge costs from P&ID and its loan shark backers.

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“Today (12 July 2024), the English Court of Appeal upheld Nigeria’s claim for post-judgment costs to be paid in Pounds Sterling (GBP), which P&ID attempted to drastically reduce by claiming that Nigeria should only be entitled to recover its costs in Naira, which would have resulted in a much lower cost.

“This is yet another misguided and reckless attempt by fraudsters to rob the Nigerian people of their hard-earned public revenue. As a government, we are determined to recover these costs and make P&ID and its US financiers pay for their fraud so as to serve as a deterrent to others like them. We commend the dedication and tenacity of our legal team for this achievement,” the statement said.

The ruling follows a bitter legal battle. P&ID, a British Virgin Islands-registered company, initially obtained an $11 billion ruling against Nigeria in 2019 at an arbitration tribunal in London. Nigeria vigorously contested the ruling, arguing that the contract was a sham and that P&ID had no real investment in the project.

Victory in Two Fields

The latest ruling is a double victory for Nigeria. Attorney General of the Federation and Minister of Justice Lateef Fagbemi hailed the decision, highlighting the importance of the currency used for payments. By requiring fees to be paid in Pounds Sterling, Nigeria avoids significant devaluation due to exchange rate fluctuations.

Blow to P&ID Finances

The ruling is a major financial blow to P&ID. The exact legal costs are unknown, but they are likely to be substantial. This decision, coupled with the ongoing lawsuit over the original $11 billion ruling, further calls into question P&ID’s financial viability.

Nigeria scores legal win as P&ID pays ruling costs in Pounds first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.