Agency Report/
An Irish-owned firm was today granted court permission to seize up to $9bn (£7.4bn) in assets from the Nigerian government.
A British judge said that Process and Industrial Developments Ltd (P&ID) could take 20 per cent of Nigeria’s foreign reserves. The move will likely raise concerns among foreign investors.
The saga dates back to a 2010 deal for the Nigerian government to supply gas to a processing plant built and run by P&ID.
However, in 2013 P&ID won a $6.6bn arbitration case. The figure was calculated based on what the company was estimated to have earned over the course of the 20-year agreement.
But P&ID now says interest accrued means it is owed $9bn.
Today’s decision means that the arbitration is converted into a legal judgement, allowing P&ID to attempt a seizure of the assets.
Andrew Stafford QC, P&ID’s lawyer, said: “We are pleased that the Court has rejected Nigeria’s objections both to the arbitration process and to the amount of the award and that it will grant permission to P&ID to begin enforcement of the award in the United Kingdom.”
He added: “P&ID is committed to vigorously enforcing its rights, and we intend to begin the process of seizing Nigerian assets in order to satisfy this award as soon as possible.”
*City A.M.
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