The Minister of Information and Culture, Alhaji Lai Mohammed, on Wednesday said the judgment of the United Kingdom’s Commercial Court saved Nigeria’s assets from being seized by an Irish firm, Process and Industrial Developments (P&ID).
He said granting of the stay of action on the enforcement of the $9.6 billion award granted P&ID was historic and good for the nation.
Mohammed added that the Federal Government had mandated its lawyers to file an appeal against the court order for a security deposit of $200 million to make the stay of execution valid.
He said Nigeria will be able to demand a refund of the £250,000 payment to P&ID after winning the appeal
Mohammed explained that all but one of the six proposed grounds of appeal by the Federal Government were allowed by the Commercial Court.
The minister spoke in Abuja on the outcome of the proceedings in the UK Commercial Court against the backdrop of allegations that the Federal Government failed in its application before the UK Commercial Court.
Nigeria sent a delegation to the UK, comprising the Attorney-General of the Federation and Minister of Justice Abubakar Malami; Mohammed; Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele; Inspector-General Mohammed Adamu; Assistant Inspector-General (AIG) Ibrahim Lamorde; and Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu.
The minister said the delegation went to London with three objectives which were achieved.
But he said the stay of action on the $9.6billion award averted economic setback for Nigeria.
Mohammed said: “For those who may still not understand the gravity of the judgment of the Commercial Court in London last week, let me say this: Had we lost our quest for a stay of execution and application to appeal in London last week, P&ID would by now be attempting to seize our assets all over the world.
“Remember they boasted, before the judgment, that they have started compiling a list of our assets which they will attach. But now, that’s an empty boast, thanks to the successes recorded in the court of law and the court of public opinion last week.”
He said Nigeria did not lose out in the UK Commercial Court. “It was indeed a huge victory, and P&ID has every reason to be worried that the $9.6billion arbitration award to it has a good chance of being overturned.”
On the $200 million security deposit, Mohammed said Nigeria had instructed its lawyers to seek the leave of the Court of Appeal to appeal against that payment
He said: “Please note, gentlemen that Nigeria will be able to demand for a refund of the £250,000 payment to P&ID where the government wins on the appeal. This fact is being hidden by those who have been spinning the London judgment in their own favour.
“On the $200 million payment as a condition for the granting of the stay of execution, Nigeria has instructed its lawyers to seek the leave of the Court of Appeal to appeal against that payment.
“In the words of Mr. President at the 74th session of the UN General Assembly in New York last week, we are giving notice to international criminal groups by the vigorous prosecution of the P&ID scam attempting to cheat Nigeria of billions of dollars.
“The Federal Government has succeeded in changing the false narrative being peddled by P&ID both within and outside Nigeria by putting across strong evidence that the company is nothing but a fraud.
“Please permit me to thank the Nigerian media for its largely objective and patriotic reportage of this whole issue, despite the attempts by the desperate P&ID to muddy the waters.”
The minister gave insights into the activities of the delegation in the UK.
He added: “The team set off to achieve three main objectives which, even to the greatest optimist, seemed an uphill task at the time:
- Change the narrative, especially on the international stage, on the entire P&ID issue, more so in the run-up to the 26 Sept 2019 court hearing on the case.
- Apply for leave of the commercial court to appeal the judgement that recognized the humongous and unprecedented arbitration award.
- Seek a stay of execution on the UK judgment that recognized the approximately 9.6 billion-dollar arbitration award to P&ID over a botched, 20-year gas deal with Nigeria.
“Gentlemen, without being immodest, I can say categorically that we achieved all three objectives.
He said: “The Federal government now has an unconditional permission to appeal against the decision of the Commercial Court recognising and converting the $9.6 billion UK arbitration award in favour of P&ID to a domestic judgment. The Nigerian government won a leave of the commercial court to appeal the judgment which P&ID had vehemently resisted.
“The judge also recognised that the ownership of P&ID was opaque, and that a vulture fund stands behind it which had engaged lawyers determined to pursue a strategy including the temporary seizure of assets, regardless of state immunity claims.
“The Federal Government is pleased that the Judge fairly recognised the merits of its arguments and the true nature of P&ID and its strategy, and that he granted permission to appeal against his own decision and a stay pending appeal.