Constant Breach of Agreement and the National Reputation: Lessons Nigeria Must Learn from P&ID $9.6 Billion Gas Deal Judgment

Abstract

The main issue addressed in this brief is Nigeria’s disregard for the sanctity of contracts and terms of agreement, and the failure of its representatives to enter into agreements that are in the best interest of the country. In 2010, the federal government entered into a deal with the Process and Industrial Developments Limited (P&ID) to build a gas processing plant in Calabar, Cross River state. However, the deal collapsed because Nigeria failed to honour its own part of the bargain. On August 16, 2019, a British court gave P&ID the authority to seize Nigerian assets worth $9.6 billion. In its bid to overturn what it called an unfair judgment, the country filed a new and substantive challenge countering the English arbitration award and its enforcement, and started a fresh appeal against the High Court ruling. At the heart of the filing lies Nigeria’s assertion that the original P&ID deal was a Shame. Based on this, the brief recommends, among other things, that the National Assembly may have to make laws stopping government and its agencies from entering into contracts and obligations they are not ready to honour/fulfil. Also, there is need for a legislation by NASS to ensure continuity on the part of government in terms of contract execution in order to avoid a situation where every new government in Nigeria sees itself as not being bound by agreements and obligations entered into by the previous government(s).