UK Court Orders P&ID to Pay £20 Million Compensation to Nigeria in Landmark Judgement Debt Case

A United Kingdom court has mandated Process & Industrial Developments (P&ID) Limited to compensate Nigeria with £20 million in damages. The judgment follows a notable victory for Nigeria in a $11 billion judgement debt case held in October 2023.

The court directed P&ID to fulfill the compensation within the next 28 days, marking a significant turn of events in the prolonged legal battle. During subsequent proceedings in London to evaluate post-October developments, the court disclosed the £20 million damages award.

The hearing also addressed P&ID’s request for permission to appeal the decision, which the court rejected. Denying the company’s plea to remand the case to arbitration, the court cited P&ID’s purported heinous conduct throughout the proceedings as a basis for the judgment.

Notably, Nigeria initially filed a lawsuit against P&ID, seeking at least £20 million in damages and legal fees. In a major breakthrough in October, the UK court absolved Nigeria from the $11 billion judgement debt previously ruled in favor of P&ID Limited.

The legal battle between the Federal Government of Nigeria and P&ID unfolded in the Commercial Courts of England and Wales. Justice Robin Knowles affirmed Nigeria’s claim that the gas processing contract was secured through fraudulent means.

After a five-year legal struggle, Judge Knowles delivered a crucial judgement, stating, “Nigeria succeeds on its challenge under section 68. The awards were obtained by fraud, and the way they were procured was contrary to public policy.”

Recalling that P&ID was initially contracted by Nigeria in 2010 to construct a gas processing plant in Calabar, Cross River State, the deal unraveled due to the Nigerian government’s failure to uphold its end of the agreement.