Nigeria has secured a significant victory in its course to overturn a $10 billion judgement awarded against the country in a row with Process and Industrial Developments (P&ID).
On Thursday, 3rd September 2020, Ross Cranston of the Business and Property Courts of England and Wales delivered the judgement granting “an extension of time and relief of sanctions” against Nigeria, following the country’s application.
On January 31st 2017, a tribunal ruled that Nigeria is to pay P&ID $6.6 billion as damages including a pre-judgement and post-judgement interest rate at 7%; a ruling which the Federal Government of Nigeria objected and approached the court to establish that the contract was not legally awarded.
Since then, the country has been trying to overturn the judgement and has gotten permission from the court to request documents from a stakeholder in P&ID as well as to review relevant documents of some principal government officials that were key to the signing of the first contract.
Excerpts from the ruling of the judge:
“The delay in this case is extraordinary and weighs heavily on the side of the balance against an extension. In my view, however, other factors bring it down in favour of an extension.”
“As I have explained, the delay is not in my view the result of a deliberate decision made because of some perceived advantage, and in all the circumstances 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. Conclusion.”
“For the reasons given, I grant Nigeria’s applications for an extension of time and relief from sanctions.”
