In a shocking turn of events, a London judge has ruled that the $11 billion arbitration award won by Process & Industrial Development Ltd. (P&ID) against the Nigerian government was fraudulently obtained through bribery. The court has condemned the “greediness” of some Nigerian officials, highlighting their willingness to engage in corruption for personal gain.
Judge Robin Knowles stated that the way in which the awards were procured went against public policy, revealing that the 2010 gas project agreement between the government and P&ID was tainted by bribes paid to insiders as part of a larger scheme to defraud Nigeria. This ruling is a significant victory for Nigeria, preventing the country from having to pay out a substantial sum.
The judge expressed his dismay, stating, “This case has, sadly, brought together a combination of examples of what some individuals will do for money.” He further emphasized that the officials involved in the deal were motivated by greed and showed no regard for the harm their actions would cause others.
The Nigerian government had various agencies and individuals involved in the P&ID deal, including officials from the Ministry of Petroleum Resources, Ministry of Finance, Ministry of Land and Urban Development, Ministry of Justice, the Office of Attorney General, the Nigeria National Petroleum Corporation (NNPC), National Petroleum Investment Management Services (NAPIMS), and several ministers. The judge concluded that the people of Nigeria have been let down by these individuals in politics and administration, whose duty was to serve and protect them.
The P&ID deal, signed in 2010, aimed to establish a gas-processing plant in Calabar, with Nigeria supplying gas for free over 20 years. However, Nigeria failed to deliver the promised gas, and the plant was never built. P&ID subsequently sued the government for breach of contract, eventually winning a $6.6 billion award from a panel of arbitrators in London. With interest, the amount has now risen to $11 billion.
Nigeria challenged the awards in 2017, accusing P&ID of bribery during and after the time the Gas Supply and Processing Agreement for Accelerated Gas Development (GSPA) was signed. The Nigerian government alleged that its lawyers, including two lead counsel, were corrupted by P&ID. Nevertheless, P&ID denied the corruption allegations, claiming that they genuinely wanted to perform the contract and that Nigeria lost the arbitration for reasons unrelated to corruption.
In the recent ruling, the judge confirmed that not only was the original gas contract tainted by corruption, but P&ID officials also engaged in bribery to secure the UK arbitration award.
This verdict has been widely praised by Nigerian officials, including President Bola Tinubu, signaling a strong stance against corruption and a determination to hold those responsible accountable for their actions. It serves as a reminder of the importance of integrity and ethical conduct for both individuals and the nation as a whole.
