A UK court has awarded Nigeria more time to appeal a fraudulent $10 billion arbitration case with a company called Process & Industrial Developments (P&ID).
Sir Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria’s application for an extension of time and relief from sanctions.
P&ID had won a $6.6 billion arbitration award after a 2010 deal to carry out a gas project in Nigeria collapsed. The award has been accruing interest since 2013 and is now worth nearly $10 billion.
The judgment reads: “Covid-19 Protocol: This judgment will be handed down by the judge remotely by circulation to the parties’ representatives by email and release to Bailii. The date and time for hand-down will be deemed to be 10:30 AM on 4 September 2020.”
Sir Cranston in his judgment continued: “Nigeria has acted reasonably. Given the strong prima facie case of fraud which I have concluded Nigeria has established, the position is along the lines of that identified in Terna, where Popplewell J identified the substantial injustice an applicant would suffer in respect of the underlying dispute if deprived of the opportunity of making a challenge should an extension of time be refused: Terna Bahrain Holding Company WLL v Bin Kamil Al Shamsi [2012] EWHC 3283 (Comm), [2013] 1 Lloyd’s Rep 86, [33];
“For the reasons I have given, P&ID has contributed to the delay, and it will not by reason of the delay suffer irremediable prejudice in addition to the mere loss of time if the application is permitted to proceed. Although not a primary factor, fairness in the broadest sense favours an extension in this case.
“For the reasons given, I grant Nigeria’s applications for an extension of time and relief from sanctions,” Cranston said.
In pursuit of the case, The New Diplomat had in April reported that Nigeria secured a judgement to commence scrutiny of purported foreign accounts of some designated government officials who served under former President Goodluck’s administration, including Jonathan, his wife, Mrs Patience Jonathan and a former Petroleum Minister, Mrs Diezani Alison-Madueke.
Also, the Economic and Financial Crimes Commission (EFCC), had on August 18, arraigned James Nolan, a Briton, and six companies over their alleged involvement in the contract.
