Home » Nigeria pays £250,000 running cost to P&ID
Featured Fraud Headlines Judiciary News Nigeria Top Headline

Nigeria pays £250,000 running cost to P&ID

The Federal Government has paid £250,000 to Process and Industrial Developments Limited as its running cost as ordered by a London court.

The money was ordered to be paid to P&ID by Justice Christopher Butcher of the Commercial Court in London.

Justice Butcher had in the September proceedings, granted Nigeria leave to appeal against the $9.6bn awarded in favor of P&ID over an alleged breach of a gas supply contract tagged Gas Supply Processing Agreement.

In granting the leave, the court had ordered Nigeria to pay the £250,000 cost to P&ID within 14 days of which Nigeria was able to beat the 14-day ultimatum which elapsed on Thursday and the payment was made through the Central Bank of Nigeria.

The Attorney-General of the Federation, Abubakar Malami (SAN), confirmed the development saying that it paid the £250,000 cost out of respect for the court.

It was also gathered that the federal government appealed against the order of the same court which asked that a $200m security payment be made into its account within 60 days as a condition for a stay of execution of the $9.6bn judgment earlier given in favour of P&ID.

Minister of Information and Culture, Lai Mohammed, had said that apart from the $200m, the government would be able to seek a refund of the £250,000 when the appeal succeeds.

He said, “The Federal Government has a good chance of being successful in its impending appeal, otherwise the commercial court would not have allowed the appeal”.

The $9.6bn award arose from a dispute concerning the 20-year GSPA between P&ID and Nigeria signed in 2010, through the Ministry of Petroleum Resources of which P&ID was to build in the Niger Delta region a gas processing plant for the refining of natural gas, also known as “wet gas” into “lean gas” which would be used by Nigeria to generate electricity.

The two parties subsequently approached an arbitration tribunal in London which on January 31, 2017, issued a final award of $6.56bn damages with accumulated interests jacking up the worth of the award to US$9.6bn in favour of P&ID.

In Nigeria, two directors of P&ID were convicted of charges bordering on economic sabotage.

A Nigerian court order the closure of the firm’s office and forfeiture of its assets.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: