President Bola Tinubu, on Monday, described as a victory for Africa, Nigeria’s win in the $11bn Process & Industrial Developments (P&ID) Limited arbitration award.

The President commended Justice Robin Knowles of the Commercial Courts of England and Wales for “prioritising the merits of the case above all other considerations”.

“This landmark judgment proves conclusively that nation states will no longer be held hostage by economic conspiracies between private firms and solitarily corrupt officials who conspire to extort and indebt the very nations they swear to defend and protect,” the President said in a statement by his spokesman, Ajuri Ngelale.

“Today’s victory is not for Nigeria alone. It is a victory for our long exploited continent and for the developing world at large, which has for too long been on the receiving end of unjust economic malpractice and overt exploitation.

“Nigeria is appreciative of the tremendous efforts of the defense team and acknowledges the role of the Federal Ministry of Justice and the Office of the Attorney-General in the process of defending Nigeria’s interest in this case,” the President stated.

With the judgement delivered on Monday, Nigeria succeeded in stopping the enforcement of the award which was initially in favour of P&ID.

According to the judge, the award against Nigeria by the company was obtained by fraud.

“In the circumstances and for the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations. But the Awards were obtained by fraud and the Awards were and the way in which they were procured was contrary to public policy,” Justice Knowles ruled.

In January 2010, the P&ID signed a Gas Supply and Processing Agreement (GSPA) with Nigeria to develop a processing plant in Calabar, the Cross River State capital but the deal failed in August 2012 and the company sought a $5.96bn compensation from Nigeria with arbitration proceedings against the country at the London Court of International Arbitration.

In January 2017, the arbitration said Nigeria breached the contract and ordered the country to pay the company $6.6bn with interest starting from May 2013. Before the verdict, the interest fixed at seven percent ($1m daily) had accumulated to over $11bn.

Subsequently, Nigeria filed an appeal against the enforcement of the award and the court granted the relief sought by the country in September 2020. The Nigerian side argued that there was enough evidence that the contract and the arbitration award were procured by fraud.

The Nigerian side thereby urged the court to set the award aside, saying that some individuals in the case were being tried for money laundering and graft.