British court has ordered an Irish firm, Process and Industrial Developments Ltd (P&ID) to seize 20% in assets, of Nigeria’s foreign reserves, which is up to $9bn
Justice Butcher of the British Commercial Court delivdered the judgement today.
The judgement will likely raise concerns among international investors. The case dates back to 2010 when Dr. Goodluck Jonathan was Nigeria’s president.
The Nigerian government, under the leadership of Dr. Jonathan, had struck a deal with the Irish firm to supply gas to a processing plant constructed and run by P&ID in Cross – River state.
The agreement was for a deal up to 20 years. But the Nigerian government failed to keep to her own promise of the agreement, which is why the firm decided to take the case to court.
P&ID had won a $6.6bn arbitration case against Nigeria in 2013. The figure was calculated based on what the company was estimated to have earned over the course of the original 20-year agreement.
But in today’s judgement, the firm stated that the amount had risen to $9bn following interest accrued so far, reports City A.M. Today’s decision means that the arbitration is converted into a legal judgement, allowing P&ID to attempt a seizure of the assets.
Andrew Stafford QC, P&ID’s lawyer, said::
“We are pleased that the Court has rejected Nigeria’s objections both to the arbitration process and to the amount of the award, and that it will grant permission to P&ID to begin enforcement of the award in the United Kingdom.
He added “P&ID is on the mission to vigorously enforcing its rights, and we aim to start the process of holdingNigerian assets in order to satisfy this award as soon as possible.”