Nigeria Recovers $200 Million Bond in P&ID Case, Seeks Legal Cost Reimbursement
The Federal Government of Nigeria has successfully recovered a $200 million bond paid in arbitration following its landmark victory against Process and Industrial Development (P&ID) in the $11 billion arbitration case. The government also expects to recoup tens of millions in legal costs from the proceedings.
Key Developments in the P&ID Case
At a press briefing held at the Office of the Attorney General of the Federation (OAGF) headquarters, key officials including Attorney General Lateef Fagbemi SAN, National Coordinator Kofo Abdulsalam-Alada, and litigation lead Shaistah Akhtar provided updates on the case.
$200 Million Bond Released to Nigeria
AGF Fagbemi confirmed the release of Nigeria’s $200 million arbitration bond following the successful court outcome. “After our success, this bond was released,” he stated, highlighting the significance of the legal victory that protected Nigeria from a potentially devastating financial burden.
The Attorney General praised the legal team’s efforts in exposing the fraudulent foundations of P&ID’s claims and navigating the complex international arbitration process.
Recovery of Legal Costs Underway
The government is pursuing recovery of all legal expenses incurred during the protracted legal battle:
- An interim payment of £20 million was ordered by the UK court
- £10 million has already been received
- The remaining £10 million is pending Supreme Court review in July 2025
- Total legal costs are estimated in the “tens of millions” of pounds
Background of the P&ID Case
The dispute originated from a 2010 agreement between Nigeria and P&ID for a gas processing facility in Calabar that never materialized. After P&ID claimed breach of contract:
- A 2017 tribunal initially awarded P&ID $6.6 billion in damages plus interest
- The claim ballooned to $11 billion with accrued interest
- Nigeria successfully proved the contract was obtained through bribery
- In October 2023, a UK court overturned the award, calling it fraudulent
Government’s Stance on Future Cases
Abdulsalam-Alada emphasized that the victory sets an important precedent: “The government is resolved that we are going to toe the same line and never enter into settlements with this type of people.” He warned that similar attempts to exploit Nigeria through arbitration would be met with strong legal resistance.
Akhtar confirmed the government’s determination to recover all costs: “They’re also going to lose the amount that we spent defending this country, because they are going to pay back, and they have actually started paying back.”
Full credit to the original publisher: Nairametrics