United Kingdom court has ordered stay of execution of the $9.6billion judgement debt secured against Nigeria by Process and Industrial Development (P&ID). The Commercial Court granted the order pending the determination of an appeal by the Federal Government of Nigeria.
However, the court ruled that the Nigerian government should make a security payment of $200million to the court within 60 days
The court also granted Nigeria’s leave to file an appeal against the award as we earlier reported.
But the court upheld the award and refused to reverse the damages.
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN) hinted that the battle to quash the award has shifted to the UK Court of Appeal.
He however doubted the possibility of challenging the legality of the $200million security deposit within the 60-day window.
P&ID secured the damages against Nigeria following a failed Gas Supply Project Agreement (GSPA) contract between it and the Federal Ministry of Petroleum Resources.
A brief from London by the Attorney-General of the Federation and Minister of Justice Malami (SAN) said: “Leave to appeal has been granted. Stay of execution is also granted subject to payment of $200m security payment to court pending the determination of the appeal the leave for which has been granted by the commercial court.
“The steps we will consider are to study the ruling and act in a way beneficial to the interest of the nation.
“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 $200m in view of the 60 days window stipulated by the court.”
Malami, who admitted that he was pleased with the judgment, said: “I 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 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.”