The Federal Government of Nigeria has successfully recovered a $200 million bond linked to its long-running legal dispute with Process and Industrial Development (P&ID). The recovery was announced by the Office of the Attorney General of the Federation (OAGF) following Nigeria’s decisive victory in the case, in which P&ID had attempted to enforce an $11 billion arbitration award.
This bond had initially been deposited as a prerequisite for obtaining a stay of execution on the award while the matter was being contested in the United Kingdom. A UK court ultimately nullified the arbitration award, which stemmed from a 2010 gas processing agreement between Nigeria and the British Virgin Islands-based firm. The court concluded that the contract was marred by fraud and corruption, thereby vindicating Nigeria’s stance.
Attorney General and Minister of Justice, Lateef Fagbemi, SAN, announced the development during a meeting with senior legal officials. Among those in attendance were Mr Kofo Abdulsalam-Alada, who led Nigeria’s Legal and Investigation Team on the P&ID case, and Ms Shaistah Akhtar, head of the country’s litigation team.
Fagbemi praised the legal team’s diligence and integrity, especially the coordination efforts led by Abdulsalam-Alada. He attributed the successful outcome to a carefully executed legal strategy and the collaboration of multiple government bodies.
In addition to reclaiming the bond, Fagbemi confirmed that Nigeria is set to recover legal costs awarded by the court, amounting to “tens of millions” of pounds. “Before we went into this arbitration, there was a demand for a deposit or bond of $200 million, which Nigeria paid. After our success, this bond was released,” he stated.
He emphasised that the P&ID case posed a serious risk, with the potential to place an enormous financial strain on Nigerian citizens. However, the ability to uncover the fraudulent basis of the contract and secure a favourable judgment, he said, highlighted the legal team’s “outstanding expertise and unwavering resolve.”
Abdulsalam-Alada, who also serves as Legal Director at the Central Bank of Nigeria, described the case outcome as a powerful deterrent. “Similar things are going on behind the scenes… we are never entering into settlements with this type of people again,” he said.
He further confirmed that efforts are ongoing to recover all expenditures incurred during the legal proceedings. “Let it be known that these people not only lose in the courts; they’re also going to lose the amount we spent defending this country… and they have started paying back. It sends a signal to others who might try the same,” he added.
Supporting this, Akhtar affirmed the government’s right to recoup its legal costs: “The government is entitled to recover it legally.”
The dispute with P&ID originated from a failed gas project deal signed in 2010. The arbitration award initially granted to the company drew international attention, not only due to the scale of the financial claim but also because of widespread allegations of corruption tied to the contract’s formation.
The recovery of the $200 million bond is widely seen as a significant win for President Tinubu’s administration. It underscores Nigeria’s commitment to defending its national assets and confronting fraudulent agreements through lawful and transparent means. The case’s resolution has been hailed as a major legal and diplomatic success for the country