An English High Court court ordered P&ID to pay the sum of 1.5 million pounds to the Federal Republic of Nigeria (FRN), during its scheduled hearing on Thursday.
The hearing followed Nigeria’s major victory, granted by the court last week Friday, to bring a fraud challenge against a $10 billion arbitration award obtained by vulture-fund-backed P&ID, well outside the normal time limits.
The court’s grant means Nigeria will now proceed to a full fraud trial.
The hearing on Thursday was to decide procedural and costs issues relating to Nigeria’s applications to challenge the arbitration award as well as determine the short term directions to the trial.
Justice Cranston J ordered P&ID to make an interim payment of more than £1.5 million within 21 days to cover legal costs the FRN incurred as part of their successful application for the extension of time to challenge the arbitration award and procedural hearing earlier in the year.
A case management conference to determine the full trial window is scheduled to take place after November 2020.
A spokesperson from the Attorney General of the Federation said: “This is another crucial win for Nigeria in our ongoing fight against the vulture-fund-backed P&ID. We are pleased that the English Courts have taken our fraud challenge seriously, and awarded us a substantial interim payment in respect of our successful application for an extension of time to challenge the award.
“This is a significant blow for P&ID, who continue to attempt to delay the process.
“To date, P&ID and its financial backer VR Capital have not produced a single document or credible witness to challenge the FRN’s fraud evidence. Instead, they continue to resort to disseminating misleading claims, while taking every step possible to delay or obstruct our investigations across multiple jurisdictions.
“The FRN remains firmly committed to overturning the injustice of the $10 billion award, and will not rest until we secure justice for the people of Nigeria – no matter how long it takes. Investigations into the GSPA are ongoing, and we are confident that more of the truth will be revealed over the coming months.”