Nigeria has received a legal hiding after a UK court awarded a private company a US$9.6 billion judgment debt against the West African nation.
The ruling has generated significant attention in both domestic and international media. This is understandable given that the sum amounts to 20% of the country’s foreign reserves. This means it poses a significant threat to its economy.
In return, the P&ID would process the wet gas by removing natural gas liquids and return approximately 85% of it to the government in the form of lean gas. This lean gas was to be returned at no cost to the Nigerian government. Clause 20 of the agreement, which both parties signed, provided that any disputes were to be resolved by arbitration with the seat of arbitration being London, England or any other place agreed by the parties. Nigeria tried to contest this, but its appeal to have the tribunal sit in Nigeria failed.
In January 2017, the tribunal by a majority of 2 to 1 made a final award of US$6.597 billion together with interest at the rate of 7% starting from 20 March 2013 until payment is made. The 7% interest reflects what the P&ID would have paid to borrow the money or earned by investing the money in Nigeria.
This case perhaps highlights issues with Nigeria’s ability to effectively manage its oil and gas resources as well as its facilities. Between January and June 2019 alone, it is reported that Nigeria lost 22 million barrels of crude oil.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EXPLAINER: How Nigeria got hit with a $9.6 billion judgment debt in London - Premium Times NigeriaP&ID claims it invested $40 million in the project even though it had not built any facilities for gas processing.
Read more »
Buhari's victory: Uche Ogah react, says judgement, indication of Nigeria people's preference for progress - Daily Post NigeriaThe Minister of State for Mines and Steel Development, Dr. Uchechukwu Sampson Ogah has reacted to the Presidential Election Petition Tribunal which reaffir
Read more »
High points of judgment on election petition by Atiku Abubakar and PDP against Buhari - Vanguard NewsNigeria News - High points of Judgment on Election Petition by Atiku Abubakar and PDP against President Muhammadu Buhari.
Read more »
Presidential election judgment based on existing laws– ActivistNigeria News - Mr Frank Tietie, a human rights activist, says judgment of Presidential Election Petition Tribunal that affirmed election of Pres
Read more »
Judgment: Anxiety, as Oshiomhole, SANs, others await judgement tribunalNigeria News - The Court of Appeal, Abuja, is venue where the Presidential Election Petition Tribunal delivers judgment in the petition filed by the PDP
Read more »
The most important event | The Guardian Nigeria News - Nigeria and World NewsI could observe yesterday that most hours of the day, the country was literally shut down. Predictably so. Many glued their eyes on their television to follow pronouncements at the Presidential Election Petition Tribunal.
Read more »