Nigeria Wins $200M Bond in P&ID Legal Battle 

The Nigerian government has successfully reclaimed a $200 million bond previously paid during arbitration tied to the controversial Process and Industrial Development (P&ID) case. This comes after a decisive legal victory overturning an $11 billion claim against the country.

During a press conference at the Office of the Attorney General, key officials confirmed the bond’s release and revealed plans to recover legal expenses, running into tens of millions of pounds. The team credited their thorough investigation and strong defense for this major win.

Key Highlights of the Case UpdateNigeria had deposited the $200 million as part of the arbitration process, which was held pending the outcome of the dispute. Following the ruling in Nigeria’s favor, these funds have now been returned to the government coffers.

Attorney General Lateef Fagbemi praised the dedication of the legal team, led by Kofo Abdulsalam-Alada, for exposing the fraudulent nature of the original contract claim, which threatened to burden Nigeria with enormous financial liability.

Abdulsalam-Alada emphasized that this victory serves as a firm message: the Nigerian government will not tolerate deceitful claims or pay settlements to unscrupulous parties. He added that efforts are ongoing to recover all associated costs, and repayments from the opposing side have begun.

Legal Fees and Court DecisionsThe government is also entitled to recover its legal costs, which amount to several million pounds. After the judgment, a UK court ordered an initial payment of £20 million toward these costs. So far, £10 million has been received, with the remainder currently delayed due to a legal dispute over the currency of payment. The UK Supreme Court is expected to rule on this matter later this year.

Despite attempts by P&ID to stall payments, pressure from Nigerian legal representatives has ensured partial compliance. The High Court previously dismissed P&ID’s challenge to the payment terms.

Background: The Origins of the DisputeIn 2010, P&ID entered a contract with Nigeria to construct and operate a gas processing plant in Calabar. The firm claimed the government failed to uphold its end of the deal, resulting in arbitration and a multi-billion-dollar compensation demand.

A 2017 tribunal awarded P&ID $6.6 billion plus interest. However, Nigeria countered with evidence of bribery and fraud in securing the contract. Ultimately, in 2023, a UK court invalidated the award, citing fraudulent practices.

Additionally, P&ID was ordered to pay damages to Nigeria, reinforcing the government’s legal success.