$9.6bn Debt: Nigeria to Deposit $200m in 60 Days

By Adedapo Adesanya

On Thursday, a British Court sitting in London said Nigeria can challenge the $9.6 billion fine awarded in the legal battle with Process & Industrial Development (P&ID) if it deposits $200 million within the next two months.

Christopher Butcher, a justice of the Commercial Court in London, also ruled that Nigeria must pay $250,000 to the Irish engineering company as its running costs within 14 days.

Nigeria was however granted a stay of execution of the arbitral award on the condition that $200 million be deposited within 60 days.

If Nigeria fails to deposit the amount in the court’s account within the stipulated period, Butcher said the court will have no option than to lift the stay of execution order.

The judge said he based his decision on the “real risk that Nigeria’s assets will not be returned in the event that the appeal is successful and would be lost to the government and to the people of Nigeria”.

Nigeria had asked for permission to appeal against the enforcement of the judgement which has been granted.

Butcher then said that there was a risk of irreparable damage if the Irish company decided to use third-party agents to monetise and stash away the assets seized pending an appeal.

However, Nigeria’s legal team led by Attorney-General and Minister of Justice, Abubakar Malami, argued that the August 16 ruling was flawed as the damages awarded P&ID was “clearly unreasonable and manifestly excessive and exorbitant.”

The Nigerian government welcomed the court’s decision on Thursday, according to a statement from the presidency.

It described the development as a positive resolution which was an important step in government’s efforts to have the matter resolved in its favour.

Speaking after the court rose, Mr Malami said, “I am pleased with today’s development in the court and see this as a positive resolution that constitutes an important step in the government’s efforts to defend itself in a fair and just process.

“We will study the court rulings, exercise the right of appeal and consider the legal options available at our disposal as it relates to the payment of $200 million in view of the 60 days window stipulated by the court.”

“We look forward to challenging the UK Commercial Court’s recognition of the tribunal’s decision in the UK Court of Appeals, uncovering P&lD’s outrageous approach for what it is: a sham based on fraudulent and criminal activity developed to profit from a developing country,” he added.