The Nigerian government has won an appeal in which it had challenged the awarding of $11 billion in damages to a British Virgin Islands company.
The company, Process & Industrial Developments Limited, had signed a 20-year oil and gas project with the Nigerian government in 2010, but the African nation walked back on the deal.
Process & Industrial Developments Limited had been contracted to supply gas to Nigeria for "accelerated gas development" but Nigeria rescinded its decision, prompting the company to take legal action in 2013.
The foreign firm, which was owned by Irish businessmen Michael Quinn (deceased) and Brendan Cahill, sued Nigeria for contractual breach at a United Kingdom tribunal, and in 2017, Nigeria was ordered to pay the firm $6.6 billion in damages plus interest at a rate of 7% per annum.
Inclusive of interest, the damages had ballooned to more than $11 billion as of 2023.
Aggrieved by the 2017 ruling, Nigeria challenged the decision at the Commercial Court in London.
Bribery and corruption
In its defense, Nigeria said that it had established that the foreign firm engaged in "bribery, corruption and perjury" to secure the business deal.
Nigeria said the corruption took place "before and after the time the parties entered into an agreement."
Judge Robin Knowles ruled on Monday that Nigeria had successfully argued its case, and therefore the damages awarded in 2017 to Process & Industrial Developments Limited were void.
"I have had close regard to consistency of witness testimony with the documentary record where a record exists and appears to be reliable," Knowles said in his ruling.
"This case has also, sadly, brought together a combination of examples of what some individuals will do for money. Driven by greed and prepared to use corruption; giving no thought to what their enrichment would mean in terms of harm for others," the judge added.
