Sunday, February 9, 2020
Advertisement

Nigeria obeys English court order, posts $200m bond in P&ID case

Nigeria obeys English court order, posts $200m bond in P&ID case
November 29
10:18 2019
Advertisement

The federal government has posted a bond of $200 million with a London court in the $9.6 billion judgement against Nigeria in its case with Process & Industrial Development (P&ID) Limited. 

In September, Christopher Butcher, judge of a commercial court in London, ordered Nigeria to deposit the sum while granting the country’s request for a stay of execution in the case.

TheCable previously reported that Nigeria could still escape the $9.6 billion award in favour of P&ID if $200 million was deposited in 60 days.

In a statement issued on Thursday, Abubakar Malami, attorney-general of the federation, confirmed that the deposit has been made.

He said the payment was done after approval by President Muhammadu Buhari.

Malami said the Nigerian legal team is still working to have the judgement overturned, adding that the country “does not plan to forfeit the guaranteed sum to the High Court in UK”.

“The Federal Republic of Nigeria today provided the English High Court with a bank guarantee as a security in compliance with the Court order,” the statement read.

“This variation in security, which was proposed by Nigeria as an alternative solution during a procedural hearing on 22nd November, has been accepted by the Court and P&ID. The deadline was extended by the Court to the 28th November.

“The provision of today’s security is a positive step forward for Nigeria to overturn the injustice of the US$9.6 billion award, which was a direct result of fraud and corruption.

“Over the last few weeks, investigations have revealed a very serious fraud, bringing into question both the legitimacy of the GSPA (gas supply and processing agreement) and the subsequent award itself.

“As a result of these investigations, the Federation has recently expanded its legal team, which will now enable us to launch in full our challenge against the fraudulently procured agreement and award.”

P&ID reportedly entered a gas supply and processing agreement with Nigeria in 2010. The company claimed Nigeria breached the terms of the contract.

It then took a legal recourse, securing an arbitral award against the country, which has accumulated to $9.6 billion.

In September, a federal high court in Abuja ordered the forfeiture of the company’s assets in the country to the federal government. Some individuals linked to the company were also convicted of fraud and economic sabotage.

 

RECEIVE ALERTS FROM THECABLE

WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2020 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Tags
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

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

*

Advertisement
Advertisement
Advertisement
 

Exchange Rates

February 04, 2019USDGBPEUR
INTERBANK306397354
LAGOS355444389
KANO354445370
PH355447412
ABUJA356454413
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement