The Federal Government of Nigeria, on Monday, prevailed in its legal battle with Process & Industrial Developments (P&ID) Limited.
The court invalidated the $11 billion arbitration ruling in favor of P&ID after five years of legal procedures that had finally worked in Nigeria’s favor.
The Justice of the Commercial Courts of England and Wales, Robin Knowles, upheld Nigeria’s request in a decision sent via email on the grounds that the doomed gas processing contract was secured by deception.
Background
In order to construct a gas processing plant in Calabar, Cross River State, P&ID and Nigeria entered into an agreement in 2010. However, according to the company, the transaction failed because the Nigerian government failed to uphold its half of the bargain.
P&ID used legal action to obtain an arbitral decision against Nigeria, alleging that the nation had violated the terms of the contract.
However, with the announcement going in favor of Nigeria on Monday, Nigeria will not pay an enormous sum of $11 billion in fines or compensation.