British firm, Process and Industrial Developments Limited (P&ID) has won it case against Nigeria at the London Arbitration Tribunal, and this may cost Nigeria its assets in the United Kingdom.
Process and Industrial Developments Limited was awarded $8.9 billion in damages and interest by the London Arbitration Tribunal award in the breach of contract case instituted by the British firm.
Genesis of the court case
Nairametrics had previously reported that the British firm dragged the Federal Government of Nigeria before a United States District court in Colombia to enforce an arbitral award of $8.9 billion against the latter.
The Ministry of Petroleum Resources and P&ID had entered into a 20 years agreement to “help Nigeria harness its abundant natural gas reserves to solve the growing electricity crisis”.
The fine was as a result of the contractual breach of three previous administrations of Presidents Olusegun Obasanjo, Umaru Yar’Adua and Goodluck Jonathan.
The judgment debt arose from the country’s failure to perform its contractual obligations under a gas supply and processing agreement it signed with P&ID. The judgment sum had snowballed into $9 billion as a result of interest calculated at seven per cent from the date the decision was reached by an arbitration tribunal in the UK, according to court papers.
According to the UK Tribunal ruling, it was noted that the agreement was executed on January 11, 2010, by P&ID and the Ministry of Petroleum Resources for and on behalf of the Federal Government to refine associated natural gas (also known as wet gas) into non-associated natural gas to be used by Nigeria in powering its national electric grid.
Breakdown of Court case
The company had initially proposed a settlement of $850 million on May 3, 2015, but the offer was rejected by the government when it was tabled before President Buhari and Vice President Yemi Osinbajo on May 30, 2015. The initial settlement is less than 10 per cent of the current judgment sum.
According to a lead judgment by Lord Hoffman, P&ID had initiated moves to recover a judgment debt of $6.6 billion in damages plus $2.3 billion in uncollected interest, which was calculated at $1.2 million a day.
In a report by The Nation, if Nigeria fails to pay the judgment fine before February 15, P&ID can enforce the award against the country by seizing its assets in the United Kingdom (UK).
FG reaction to tribunal judgment
The Director Press for Ministry of Petroleum, Idang Alibi confirmed the financial obligation. He said both the Federal Ministry of Petroleum Resources and the Federal Government are aware of the judgment and are doing something about it but gave no further details. He, however, said the ministry will respond to the matter at the appropriate time.
Seizure of Nigeria’s asset
With the tribunal granting the seizure of some of Nigeria’s asset by Process and Industrial Developments Limited if the government fails to pay the fine, there is doubt over which asset will be seized by the British firm, with oil revenues being the likely target.
The company can enforce the award against Nigeria by seizing her assets in the UK if P&ID is successful at the hearing scheduled for this month. The tribunal ruling would give the company permission to enforce the award.
Nigeria’s foreign currency reserves is about $43.2 billion which means the P&ID judgment alone will take over 11 per cent of the entire reserves.
COVID-19 Update in Nigeria
On the 24th of February 2021, 655 new confirmed cases and 11 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 153,842 confirmed cases.
On the 24th of February 2021, 655 new confirmed cases and 11 deaths were recorded in Nigeria.
To date, 153,842 cases have been confirmed, 130,818 cases have been discharged and 1,885 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 1.49 million tests have been carried out as of February 24th, 2021 compared to 1.44 million tests a day earlier.
COVID-19 Case Updates- 24th February 2021,
- Total Number of Cases – 153,842
- Total Number Discharged – 130,818
- Total Deaths – 1,885
- Total Tests Carried out – 1,489,103
According to the NCDC, the 655 new cases are reported from 21 states- Lagos (240), Ogun (88), Rivers (56), FCT (51), Kaduna (43), Kano (25), Plateau (21), Taraba (19), Edo (17), Abia (15), Delta (13), Nasarawa (11), Akwa Ibom (10), Kwara (10), Oyo (10), Kebbi (9), Borno (5), Bayelsa (4), Gombe (4), Ekiti (2), and Osun (2).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 55,122, followed by Abuja (19,115), Plateau (8,854), Kaduna (8,422), Oyo (6,708), Rivers (6,398), Edo (4,491), Ogun (4,277), Kano (3,716), Ondo (2,944), Kwara (2,875), Delta (2,539), Osun (2,326), Nasarawa (2,208), Gombe (2,031), Katsina (2,029), Enugu (1,998), Ebonyi (1,839), Anambra (1,615), and Abia (1,487).
Imo State has recorded 1,440 cases, Akwa Ibom (1,439), Borno (1,247), Bauchi (1,221), Benue (1,188), Niger (912), Ekiti (797), Sokoto (768), Bayelsa (767), Adamawa (762), Taraba (712), Jigawa (496), Kebbi (358), Yobe (268), Cross River (267), Zamfara (219), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.
Cornerstone Insurance Plc appoints Ogechi Adeola as Director
Dr Ogechi Adeola has been appointed as an Independent Non-Executive Director at Cornerstone Insurance Plc.
Cornerstone Insurance Plc has appointed Dr Ogechi Adeola as its new Independent Non-Executive Director, subject to ratification by members at general meeting.
This is according to a notification sent to the Nigerian Stock Exchange platform, dated 24th of February, 2021, as seen by Nairametrics.
Dr. Adeola’s profile
Dr. Adeola has over two decades of work and consulting experience in the Nigerian Financial services sectors. She is an Associate Professor of Marketing at the Lagos Business School and an alumna of the Manchester Business School, United Kingdom.
On the other hand, Cornerstone Insurance closed trading today (24th of February, 2021) at the floor of the Nigerian Stock Exchange with a share price of N0.59.
Results from the recently released FY 2020 financials posted by the firm showed that gross premium written increased from N13.06 billion in 2019 to N17.6 billion. However, profit for the period declined to N1.6 billion, from N4.11 billion recorded in 2019.
What you should know:
Cornerstone Insurance Company Plc is a Nigerian-based insurance company offering services in the life and non-life categories.
It was incorporated on the 26th of July, 2021, initially as a private limited liability and subsequently became a public limited liability after its listing on the Nigerian Stock Exchange in 1997.
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