Foreign lawyers warn Nigeria to exercise caution in future contracts, as FG finally recovers $200 million bond from case with P&ID

• The national authorities has successfully recovered implicit $200 cardinal pursuing its triumph successful the long-drawn P&ID case
• There are inactive millions of pounds outstanding arsenic litigation claims successful the case, and the national authorities volition besides beryllium receiving it
• The overseas lawyers who handled the lawsuit person provided details of the lawsuit and shared lessons for the authorities to use successful aboriginal contracts

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

The national authorities of Nigeria has recovered a $200 cardinal enslaved paid successful arbitration towards the lawsuit with Process and Industrial Development (P&ID).

This comes pursuing the Nigerian government’s triumph successful the case, and the authorities is besides expected to retrieve ineligible costs incurred during the litigation, perchance amounting to implicit 10 cardinal pounds.

Attorney-General of the Federation and Minister of Justice (AGF), Lateef Fagbemi SAN, made this disclosure portion receiving the squad of overseas lawyers who defended Nigeria successful the lawsuit successful the UK.

The Nigerian authorities has recovered the $200 cardinal deposited arsenic arbitration enslaved int helium lawsuit against P&ID. Photo credit: State House
Source: Facebook

The AGF commended the ineligible squad led by Shaistah Akhtar for their resilience successful achieving the ineligible triumph and betterment of funds for the government.

Nigerian Government Recovers $200 Million Arbitration Bond

Fagbemi besides commended the efforts of each who played a relation successful the occurrence of the case, particularly Akhtar, who led the ineligible team, and Mr. Kofo Abdusalam-Alada, the National Coordinator, FRN Legal & Investigation for P&ID.

He said;

“For completeness, I privation to accidental that earlier we went into this arbitration, determination was a request for a deposit oregon enslaved of $200 million, which Nigeria paid. After our success, this enslaved was released."

Background: The P&ID Gas Processing Contract Dispute

Speaking during the visit, Akthar, who led the ineligible team, provided details of the matter. P&ID had entered into a woody with the Nigerian authorities successful 2010 to physique a state processing works successful Calabar, Cross River State.

The institution nevertheless failed to present connected the woody and claimed that the statement collapsed due to the fact that Nigerian authorities did not fulfill,l its extremity of the deal, the SUN reports.

The Nigerian government, connected its portion alleged that the state woody was a scam conceived to defraud the nation.

Legal proceedings commence arsenic P&ID takes FG to court

In the aftermath of allegations, antagonistic allegations, and chaotic conspiracy theories, P&ID went to tribunal and secured an arbitral grant against Nigeria.

On January 31, 2017, a tribunal ruled successful favour of P&ID, ordering Nigeria to wage P&ID $6.6 cardinal arsenic damages, and pre and post-judgment involvement of 7% amounting to astir $11 billion.

In October 2023, Robin Knowles, justness of the commercialized courts of England and Wales, halted the enforcement of the award. The tribunal upheld Nigeria’s prayers that the woody had been obtained by fraud and successful usurpation of conception 68 of the English Arbitration Act 1996.

The justice recovered that P&ID paid bribes to Nigerian officials progressive successful the drafting of the state proviso and processing agreement, GSPA, successful 2010, and successful a unanimous decision, the tribunal dismissed P&ID appeal.

Foreign ineligible squad warns Nigeria to use caution successful aboriginal contracts

Akthar, Partner astatine Mishcon de Reya LLP—the steadfast that represented Nigeria successful the case— noted that Nigeria was 1 of a tiny 14% of palmy challenges against arbitral grant cases.

Akthar added that the $10 cardinal paid to Nigeria was portion of the $20 cardinal awarded successful favour of Nigeria aft P&ID mislaid the case. She explained that the outstanding $10m is simply a taxable of a ineligible situation by the firm.

This translates to much wealth for Nigerian government. Photo credit: Anadolu, Nurphoto
Source: Getty Images

Akhtar urged the authorities to use caution successful aboriginal declaration grant processes to debar moving into akin pitfalls.

The pb lawyer observed that the statement guiding the declaration grant to P&ID lacked structural spot expected for a declaration of specified magnitude, and that led to issues that arose on the way.

“The declaration was not arsenic robust arsenic it should person been. It was rather a flimsy declaration for specified a long-running and high-value transaction,” Akhtar said.

FG to retrieve implicit N1.1 trillion from indebtedness scheme

On the section front, the authorities is besides taking steps to retrieve funds fixed retired successful indebtedness involution programmes.

President Bola Tinubu has fixed the acrophobic agencies September 18 arsenic the deadline to recover implicit N1.1 trillion under the Anchor Borrowers' Programme Loan.

FG moves to retrieve $20 cardinal from debtors

In related news, the national authorities has drawn up plans to retrieve over $20 billion owed successful loans to the Bank of Agriculture.

The Bank of Agriculture’s managing manager and main executive, Ayo Sotinrin, stated this astatine a property briefing, Legit.ng reports.

He stated that the $20 cardinal indebtedness betterment program is portion of a larger strategy to rise N1 trillion successful recapitalisation for the bank.

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Source: Legit.ng