Nigeria wins $11bn victory against exploitative fraudsters

The dispute arose from a 20-page gas supply and processing document agreed between the two parties in 2010. A dispute followed, which went to an arbitral tribunal as per the agreement, where in 2017 Nigeria was found to be in breach and liable to pay PID $6.6bn at 7% interest, bringing the amount at stake up to $11bn, which would have had significant financial implications for the Nigerian economy.

Ruling in Federal Republic of Nigeria v Process & Industrial Developments [2023] EWHC 2638 (Comm), Mr Justice Knowles said: ‘Nigeria did almost nothing to perform the [agreement] after signing but, according to Nigeria, neither did the other party.’

Knowles J found that PID obtained the arbitral award ‘only by practising the most severe abuses of the arbitral process’. In a lengthy judgment, he found PID and certain individuals associated with it had committed bribery, relied on knowingly false evidence and corruptly and improperly obtained Nigeria’s internal legal documents to benefit its own position in the arbitration.

He highlighted the impact of the ‘remarkable but very real’ case on the reputation of arbitration as a dispute resolution process, stating: ‘The risk is that arbitration as a process becomes less reliable, less able to find difficult but important new legal ground, and more vulnerable to fraud.’

Shaistah Akhtar (pictured), partner at Mishcon de Reya, who led Nigeria's legal team, said the judgment was ‘a historic result for Nigeria and its people.

‘The Nigerian government's resolve in pursuing a just outcome led to it uncovering overwhelming evidence of bribery and corruption. We are pleased that the judge recognised the severity of the fraud perpetrated against the people of Nigeria in his judgment, and trust that this landmark decision will deter other potential fraudsters and their backers from exploiting the legal system in the pursuit of monetary gain.’

A Federal Republic of Nigeria spokesperson said: ‘The brazen fraud perpetrated by PID has finally been revealed for all to see despite their consistent attempts to frustrate the passage of justice.’