$9.6bn Judgment: FG Pays £250,000 Running Cost To P&ID

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The Federal Government has paid the sum of £250,000 as running cost to Process and Industrial Developments Limited (P&ID).

Abubakar Malami, the Attorney General of the Federation and Minister of Justice, confirmed the payment of the fee, which was ordered by a UK Commercial Court during a suit initiated by the Federal Government to appeal the implementation of the $9.6 billion judgment awarded in favour of P&ID by a UK Arbitration Tribunal.

Justice Christopher Butcher, the presiding judge, on September 26, instructed the Federal Government’s legal team to deposit the aforementioned fee within 14 days, as part of conditions to appeal the judgment.

Read Also: $9.6bn Judgment: FG Instructs Lawyers To Appeal $200m Security Payment

The deadline for the payment elapses on Thursday (today).

It was learnt that payment was made through the Central Bank of Nigeria.

Speaking in an interview on Wednesday, Malami said the government paid the money out of respect for the court.

He, however, confirmed that the Federal Government has appealed the order instructing a deposit of $200 million as ordered by the court for what it termed security payment.

He said: “You know that there are two sets of money involved. There is the $200m security payment and there is also the £250,000 cost.

“The $200m security payment has not been paid. We have appealed against the order and we have also applied for stay of execution of the order.

“But we have paid the cost, which is £250,000, to P&ID.  The Nigerian government paid that cost out of respect for the court.”

Read Also: UK Court Grants FG Leave To Appeal $9.6bn Judgment

Lai Mohammed, Minister of Information and Culture, had last Wednesday said the Federal Government would be able to demand a refund of the £250,000 if it is successful in its appeal against P&ID.

“Please note that Nigeria will be able to demand a refund of the £250,000 to P&ID when the government wins the appeal. This fact is being hidden by those who have been spinning the London judgment in their own favour,” Mohammed said.

A UK Commercial Court had on September 26, granted Nigeria leave to appeal the judgment of a UK Arbitration Tribunal, which had on August 16, ordered Nigeria to compensate P&ID with $9.6 billion over the revocation of a 20-year Gas and Supply Processing Agreement (GSPA) signed in 2010.

 

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