The need to preserve the quality and integrity of public institutions, importance of patriotism and high sense of responsibility among representatives of public institutions; and involvement of antigraft agencies in all contractual processes of government formed the crux of the Dialogue on the Process and Industrial Development (P&ID) versus the Federal Republic of Nigeria case.
Organised by the Department of Commercial and Industrial Law, Faculty of Law, University of Lagos (UNILAG), the hybrid Dialogue was held on Tuesday, January 30, 2024 at the Faculty of Law Lecture Theatre, UNILAG.
The Dialogue, according to the Head, Department of Commercial and Industrial Law, Professor Abiola Sanni, was an avenue for legal experts to have a robust re-examination of the entire Gas Supply and Processing Agreement Contract between the Nigerian government and the Process and Industrial Development (P&ID) as well as to make informed recommendations which would help forestall similar pitfalls in future.
In his presentation, keynote speaker at the Dialogue, Mr Akin Ogun, described the Gas Supply and Processing Agreement case as one which further exposed the rot in the Nigerian contract awarding system just as it endangered the practice of international arbitration.
While giving an overview of the judgment delivered on Monday, October 23, 2023, by Justice Robert Knowles which overturned the $11 billion damages earlier awarded against Nigeria, the Founding Partner, Akin Palmer LLP, London decried the complicity of Nigerian officials in the contract. An incident, which he said, puts the country in bad light before the international community thereby making her vulnerable to further exploitations.
Mr Ogun advocated a paradigm shift in the practice of International Arbitration to check the current wave of vices which reeks of fraud and constitutes a bane to the principles of justice.
Panel discussants included Professor Oyewole Oyewo SAN and Dr Akeem Bello, both of the Department of Public Law, UNILAG, as well as the Director, UNILAG Centre for Excellence in Sustainable Procurement, Environmental and Social Standards Enhancement (UNILAG SPESSECE), Professor James Akanmu.
Prof Oyewo, in his presentation, faulted the entire judicial process which initially slammed a $6 billion fine on the Nigerian government in favour of P&ID as far back as year 2020. He also queried the laidback approach of the Nigerian government which led to a surge in the interest rate as well as the alleged involvement of government officials, incidents which he said, drags Nigeria’s justice delivery system into disrepute.
Prof James Akanmu gave an insight into the Public Procurement Act of 2007 especially its forbiddance of bribery and outline of due process. He commended the efforts of legal minds in challenging the $11 billion ruling against Nigeria and harped on the need for strict compliance with due process in any contract procurement process.
Dr Akeem Bello, in his submission, expressed concern on the corruption manifested at almost every stage of the Gas Supply and Processing Agreement. A development, which he said, calls for a thorough audit of every major government contract agreement to uncover (if any) and forestall acts of corruption.
In his remarks, the Dean of the Faculty of Law, UNILAG, Professor Ige Bolodeoku appreciated all members of the faculty for their commitment to the Dialogue Series. He queried the integrity of those who represented Nigeria especially while drafting the Gas Supply and Processing Agreement, and harped on the need for patriotism and high sense of responsibility especially from public officials.
Background
The P&ID controversy dates back to January 2010 when the company signed a Gas Supply and Processing Agreement with the Ministry of Petroleum Resources on behalf of the Nigerian government.
Under the terms of the agreement, P&ID was to build and operate an Accelerated Gas Development project to be located at Adiabo in the Odukpani Local Government Area of Cross River State. The Nigerian government was to source natural gas from oil mining leases (OMLs) 123 and 67 operated by Addax Petroleum and supply to P&ID to refine into fuel suitable for power generation in the country.
However, P&ID alleged that after signing the agreement, the Nigerian government reneged on its obligation after negotiations were opened with the Cross-River State government for the allocation of land for the project.
The legal battle began in January 2017, when a tribunal instructed Nigeria to pay P&ID $6.6 billion in damages, along with pre-and post-judgment interest at a rate of 7%. This decision was later ratified by Ross Cranston, a judge within the Business and Property Courts of England and Wales, in September 2020.
During court proceedings, the Nigerian government’s legal representatives alleged that P&ID executives had employed bribery to secure the contract. P&ID denied these accusations, countering that the government’s claims were baseless and unsupported conspiracy theories.
Victory came the way of the Nigerian government on Monday, October 23, 2023, when Justice Robert Knowles gave a ruling which overturned the damages which had risen to the tune of $11 billion.
Report: Gbenga Gbelee
Photography: Ayo Oloyede
