An Irish-owned firm was today granted court permission to seize up to $9bn (£7.4bn) in assets from the Nigerian government.
A British judge said that Process and Industrial Developments Ltd (P&ID) can take 20 per cent of Nigeria’s foreign reserves. The move will likely raise concerns among foreign investors.
The case dates back to 2010, during Dr. Goodluck Jonathan's administration as Nigeria’s president. The Nigerian government, under Dr. Jonathan, had struck a deal with the Irish firm to supply gas to a processing plant built and run by P&ID in Calabar
However, in 2013 P&ID won a $6.6bn arbitration case. The figure was calculated based on what the company was estimated to have earned over the course of the 20-year agreement.
But P&ID now says interest accrued means it is owed $9bn.
Today’s decision means that the arbitration is converted into a legal judgement, allowing P&ID to attempt a seizure of the assets.
Andrew Stafford QC, P&ID’s lawyer, said: “We are pleased that the Court has rejected Nigeria’s objections both to the arbitration process and to the amount of the award, and that it will grant permission to P&ID to begin enforcement of the award in the United Kingdom.”
He added: “P&ID is committed to vigorously enforcing its rights, and we intend to begin the process of seizing Nigerian assets in order to satisfy this award as soon as possible.”
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