Fraud, Bribery and Corruption Lead to $11bn Arbitration Award Set Aside
The UK High Court handed down its judgement in October 2023 in the Federal Republic of Nigeria v. Process & Industrial Developments Ltd [2023] EWHC 2638 (Comm), setting aside the $11bn arbitration award because it was obtained by fraud and contrary to public policy. Background Facts In 2010, the Federal Republic of Nigeria (“Nigeria”) and Process & Industrial Developments Ltd (“P&ID”) signed an agreement. Under the agreement, Nigeria was to supply gas to the facilities construed by P&ID. P&ID, on the other hand, would use these facilities to process gas so that it could be used by Nigeria for power generation. Neither party performed the contract. As a result, P&ID brought an arbitration claim against Nigeria resulting in it being awarded damages of $11bn, including interest. $11bn was equivalent to a significant proportion of Nigeria's state budget at the time being. Nigeria challenged the award under s.68 of the Arbitration Act on the grounds ...
