Nigeria has successfully halted the enforcement of a staggering $11bn arbitration award that was originally in favor of Process and Industrial Developments Limited (P&ID) after more than five years of intense legal battles.
The verdict, delivered by email from Robin Knowles, a justice of the Commercial Courts of England and Wales, cited the discovery of fraud in the ill-fated gas processing contract as the basis for Nigeria’s legal victory.
As previously reported by TheCable, anticipation had been building for the much-anticipated judgment, which was initially expected to be handed down on Monday.
The origin of this colossal dispute traces back to a private arbitration tribunal’s decision on January 31, 2017, which ordered Nigeria to pay a monumental $6.6 billion to P&ID, along with interest dating back to March 20, 2013.
With the interest rate fixed at an astonishing seven percent, this translated to a daily accrual of one million dollars. As a result, the potential payment swelled to a staggering $11 billion before today’s historic verdict.
This judgment marks a significant turning point in a protracted legal saga that has gripped international attention and strained Nigeria’s fiscal resources.
The revelation of fraud within the gas processing contract fundamentally altered the trajectory of this legal battle, enabling Nigeria to successfully challenge the previously insurmountable award.
The ruling has not only brought relief to Nigeria but has also underscored the importance of transparency and integrity in international business agreements, highlighting the consequences of fraudulent practices in the global arena.
This landmark decision is bound to have far-reaching implications for international arbitration and the enforcement of contract awards worldwide.