P&ID’s $10bn Arbitrary Award: UK Court Grants Nigeria Extension of Time

By Chris Udochukwu

Abuja (Precise Post) – The Federal Republic of has been granted permission to proceed with its challenge to the $10 billion arbitral award outside normal time limits due to exceptional circumstances of fraud being uncovered.

The English Commercial Court today delivered the unprecedented judgment allowing the FRN permission to proceed with its challenge to the $10 billion arbitral award made against it over three years ago. 

This was disclosed via P&D Fact Check twitter handle @PandDFactCheck.

The Court has allowed the FRN to bring this challenge well outside the normal time limits due to the exceptional circumstances where the FRN has uncovered evidence of a massive fraud in procuring the award. 

The Court heard evidence from the FRN and the offshore shell company P&ID in relation to the gas supply and processing agreement (GSPA) which the parties entered into 10 years ago and which was never performed.  The Buhari Administration, having inherited this dispute from the previous administration, only recently uncovered evidence that the GSPA was a sham commercial deal designed to fail from the start, and that its subsequent arbitral award was based on fraud and corruption.  The FRN relied on a number of ongoing investigations across multiple jurisdictions, including the US, to build its case. During the hearing, new evidence was presented to further support the FRN’s challenge.

The Judge, Sir Ross Cranston, found that: “ has established a strong prima facie case that the GSPA was procured by bribes paid to insiders as part of a larger scheme to defraud . There is also a strong prima facie case that P&ID’s main witness in the arbitration, Mr Quinn, gave perjured evidence to the Tribunal and that, contrary to that evidence, P&ID was not in the position to perform the contract. As to the Jurisdiction and Liability stages of the arbitration, there is a prima facie case that they were tainted by the conduct of ’s advocate, Mr Shasore. … It seems to me that Nigeria has made a good case that, at the time it took part or continued to take part in the arbitration, it did not know and could not with reasonable diligence have discovered the grounds it now advances.”

This is a significant win for the FRN as well as the court systems, Cranston stated: “Not only is the integrity of the arbitration system threatened, but that of the court as well, since to enforce an award in such circumstances would implicate it in the fraudulent scheme.”

The FRN will now proceed to a full trial of the issues where the FRN’s substantive application to finally set aside the award will be heard.  

A spokesperson for the Attorney General of the Federation said:

“The Federal Republic of Nigeria is pleased with the outcome from the High Court hearing today. This is a major victory in our ongoing fight against the vulture-fund-backed P&ID, to overturn the injustice of the multibillion dollar arbitral award.

In light of the new and substantive evidence presented regarding P&ID’s fraudulent and corrupt activities, the Court has granted our application for an extension of time to hear our challenge out of normal time limits.

We will now proceed to a full hearing of our fraud challenge in the coming months.

Investigations into the GSPA are ongoing, and we are firmly committed to overturning the award – no matter how long it takes – to ensure that this money goes towards Nigeria’s future, not into the pockets of millionaires trying to exploit our country.”

Leave a Reply

Your email address will not be published. Required fields are marked *