Nigeria’s $11 bln damages bill for collapsed gas deal thrown out by London court
Dec. 21, 2023
Nigeria is off the hook for an $11 billion damages bill over a collapsed gas processing project that was procured by bribery after the award was thrown out by London’s High Court.
The West African country faced having to pay the sum – representing around a third of its foreign exchange reserves – to Process & Industrial Developments (P&ID), a company based in the British Virgin Islands.
The ruling was a major boost for Africa’s biggest economy, which is saddled with mounting debt, high inflation and unemployment, and was described by Nigerian President Bola Tinubu as a blow against economic malpractice and the exploitation of Africa.
P&ID argued that the case should be sent back to arbitration, but Judge Robin Knowles ruled on Thursday that the award should be thrown out immediately.
The judge also refused P&ID permission to appeal, effectively ending the case as the company cannot apply for permission from the Court of Appeal.
A London-based spokesperson for the Nigerian government said the decision “marks the conclusion of a historic victory for the people of Nigeria”.
P&ID’s lawyers did not immediately respond to a request for comment.
REUTERS