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Monday, June 17, 2019
Process and Industrial Developments Ltd (P&ID) has asked a UK court for the right to seize financial assets held by the Nigerian government. The little-known firm wants the court to approve the seizure of $9 billion over an aborted gas project.
The request revolves around a deal made in 2010 that had the Nigerian government agreeing to supply gas to a processing plant in Calabar. Under the deal P&DI were to build and operate the plant in Calabar.
P&ID won a $6.6 billion award at arbitration, based on what it could have earned during the 20-year agreement. Now the firm wants interest on the funds saying that the total owed has grown to $9 billon because of the interest accrued since 2013.
The company, as yet, has not been able to collect any funds from the government and Nigeria has been trying to nullify the award on the basis that it was not subject to international arbitration in the UK courts. The courts rejected Nigeria’s argument.
P&ID is now asking the Commercial Court in London to convert the arbitration into a judgement, which would allow them to try to seize international assets.
A source close to President Muhammadu Buhari said they were fully aware of the matter and the government “is not sleeping”, adding they were optimistic the matter could be resolved in the courts.
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