Sequel to the United Kingdom Commercial and Arbitration Court granting the Federal Government of Nigeria leave to appeal the judgement of the British Court which awarded P&ID judgement sum of $9.6 billion asset seizure, the Arbitration court has also granted the Federal Government’s application for Stay of Execution of Judgement.
The court, however, requested that the Federal Government pay a security sum of $200 million to the court.
The company had secured the damages against Nigeria following a failed Gas Supply Project Agreement (GSPA) contract between it and the Federal Ministry of Petroleum Resources.
Attorney-General of the Federation and Minister of Justice, Abubakar Malami, gave details of the development saying:
“Stay of execution granted subject to payment of $200m security payment to court pending the determination of the appeal the leave for which has been granted by the commercial court.
“Application for leave to appeal against the award and enforcement of the award is granted.”
The tribunal had ruled that Nigeria was liable for $6.6bn in damages, which increased to about $9.6bn with accruing interest.
Minister of Finance, Budget and National Planning, Zainab Ahmed, on August 26, described the judgment as an assault on all Nigerians
She had said it was important for all Nigerians to rise up to the task of ensuring that the nation and its citizens were not unfairly treated on the matter.
According to the minister,
“This matter that has brought us here today is a very weighty one. An award of $9.6bn is equivalent to N3.5trn. N3.5trn in our annual budget will be covering for us the personnel cost, which is about N3.2trn and more. So, this award is unreasonable, excessive and exorbitant.”