6.6BILLION DOLLAR DAMAGES: NIGERIA FLOORS P& ID AT UK APPEAL COURT

The Attorney-General of the Federation (AGF), Lateef Fagbemi (PHOTO CREDIT: @naptipnigeria)
“The documents were transmitted to P&ID deliberately by the individuals in Nigeria who procured them. FRN did not authorise their release to and retention by P&ID. Among those acting for P&ID who received the FRN internal legal documents were Mr Cahill, Mr Andrew and Mr Trevor Burke,” the court paper said.
“P&ID has offered no sensible explanation for why these documents were leaked by [Nigeria’s] lawyers and has presented this Court with a conspiracy of silence. The obvious and correct inference is that they were obtained through corruption of [Nigeria’s] legal advisers carried out by P&ID and Mr Adebayo. … Mr Murray all but admitted in his oral evidence that [they] were procured by corruption, and no P&ID witness proffered an otherwise honest explanation”.
Background
In January 2010, Nigeria and P&ID entered into a gas supply and processing agreement, requiring the company to build and operate an accelerated gas development project at Adiabo in the Odukpani Local Government Area of Cross River State. The Nigerian Government was to source natural gas from oil mining leases (OMLs) 123 and 67 operated by Addax Petroleum and supply it to P&ID for processing into fuel suitable for power generation.
P&ID alleged that Nigeria breached the contract after negotiations were opened with the Cross River State government to allocate land for the project.
It claimed that efforts to settle the matter out of court with the Nigerian government failed, prompting the company to institute legal action.
An arbitral tribunal awarded $6.6 billion in damages against Nigeria and in favour of P&ID in January 2017. The sum later ballooned to more than $11 billion due to an accumulation of interest.
Nigeria challenged the award in December 2019, claiming that P&ID obtained the contract by bribing officials of the Ministry of Petroleum Resources and corrupting the country’s lawyers to gain access to confidential documents while the arbitration was on.
In October 2023, Nigeria won the bid to set aside the arbitration award after its lawyers argued that the company intended to use litigation to make money out of the situation.
P&ID, founded by Irishmen Michael Quinn and Brendan Cahill, had been pursuing the claim since 2012.
In his ruling, Justice Knowles noted that P&ID and its lawyers were “driven by greed and prepared to use corruption; giving no thought to what their enrichment would mean in terms of harm for others.”
In July 2024, an English Court of Appeal rejected the bid by P&ID to set aside a previous judgement reversing the company’s $11 billion damages claim against Nigeria. The court noted that the decision of a London high court on 21 December 2023, throwing out the $11 billion award, stands.
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