FG pays £250,000 cost to P&ID, “out of respect”

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The Federal Government has paid £250,000 to Process and Industrial Developments Limited as ordered by Justice Christopher Butcher of the Commercial Court in London on Thursday, September 26.

Abubakar Malami (SAN), Attorney-General of the Federation, confirmed this on to newsmen, saying it paid the £250,000 cost out of respect for the court.

“You know that there are two sets of money involved. There is the $200m security payment and there is also the £250,000 cost”, Malami said.

“The $200m security payment has not been paid. We have appealed against the order and we have also applied for stay of execution of the order.”

“But we have paid the cost, which is £250,000, to P&ID.  The Nigerian government paid that cost out of respect for the court.”

The London court had ordered Nigeria to pay the money to P&ID as its running cost at the September 26 hearing.

The government had appealed the order of the same court which asked that a $200m security payment be made into its account within 60 days as a condition for a stay of execution of the $9.6bn judgment earlier given in favour of P&ID.

Justice Butcher had at the September 26 proceedings granted Nigeria leave to appeal against the $9.6bn awarded in favour of P&ID over an alleged breach of a gas supply contract tagged Gas Supply Processing Agreement.

In granting the leave, the court had ordered Nigeria to pay the £250,000 cost to P&ID within 14 days, a deadline that elapsed on Thursday.




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