Arbitration Judgement: Nigeria Pays £250,000 Running Cost to P&ID

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SWITZERLAND, OCTOBER 10 – The Federal Government has paid £250,000 to Process and Industrial Developments Limited(P & ID) as ordered by Justice Christopher Butcher of the Commercial Court in London on Thursday, September 26.

The money was ordered to be paid to P&ID as its running cost at the September 26 hearing of the London court.

The government, it was further learnt on Wednesday, appealed against the order of the same court which asked that a $200m security payment be made into its account within 60 days as a condition for a stay of execution of the $9.6bn judgment earlier given in favour of P&ID.

Justice Butcher had at the September 26 proceedings granted Nigeria leave to appeal against the $9.6bn awarded in favour of P&ID over an alleged breach of a gas supply contract tagged Gas Supply Processing Agreement.

In granting the leave, the court had ordered Nigeria to pay the £250,000 cost to P&ID within 14 days.

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

The Attorney-General of the Federation, Abubakar Malami (SAN), confirmed the development in a telephone interview on Wednesday.

Malami said although the government had appealed the order to pay $200m into the court’s account and applied for stay of execution, it paid the £250,000 cost out of respect for the court.

The minister 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.”

The Minister of Information and Culture, Lai Mohammed, had last Wednesday said the government had directed its lawyers to seek the leave of the Court of Appeal to appeal against the ruling of Justice Butcher.

Apart from the $200m, the minister said the government would be able to seek a refund of the £250,000 it was asked to pay to P&ID when the appeal succeeded.

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