The Federal Government has described the P&ID contract as a scam designed to inflict economic and financial loss on Nigeria.
This was stated by the Attorney General of the Federation, Abubakar Malami during a press briefing on Television Continental (TVC). According to Malami, the 9.6 billion dollars arbitration awarded by a UK Court would not stand.
The Attorney General also made a promise to the citizens that none of the nation’s assets would be confiscated as steps were being taken to investigate circumstances surrounding the judgement. He went further to express the willingness of the government to negotiate and meet the terms of the agreement reached with genuine investors.
The backstory: In 2010, Process and Industrial Development (P&ID) signed a contract with the Federal Government under the administration of President Dr Goodluck Jonathan to supply gas to a processing plant in Calabar.
Specifically, the deal was supposed to span 20 years. However, the Nigerian government failed to keep its side of the agreement, prompting the firm to seek legal action against Nigeria.
In 2013, P&ID reportedly won a $6.6 billion arbitration case against Nigeria. The figure was calculated based on what the company was estimated to earn over the course of the 20 years agreement. However, with the accumulated interest payments, the sum now tops $9 billion, which amounts to 20% of Nigeria’s foreign reserves.
The bottom line: The founder of P&ID, Brendan Cahill denied that the agreement signed with the Federal Government in 2010 was fraudulent. He said the arbitrators in London spent five years carefully reviewing the written agreement and all the facts surrounding the deal, concluding unanimously that Nigeria was to blame for the collapse.
The new reaction by the Abubakar Malami has, however, cast doubt on the veracity of the claims of P&ID while raising a question on who is telling the truth in this matter.