Nigeria, P&ID Compensation: Matters Arising

THE government and people  of Nigeria are currently under intense pressure and burdens of unemployment, restiveness, insecurity and international debt. At this period, the nation would need every asset and funds to revive her comatose economy and set her on her feet as the true giant of Africa. It is therefore unfortunate that the nation has been mandated to pay a whopping sum of $9.6 billion dollars as compensation over a failed business agreement that was consummated by a past regime.

THE Process and Industrial Development Limited (P&ID) had accused the Federal Government of Nigeria of reneging on a contractual agreement that would have generated 2,000 megawatts of power for the national grid and transform the power production and lives of her nationals.

THE  contract had stipulated that the Nigerian government would install pipelines and supply the gas that would connect P&ID’s gas processing plant in Calabar. This would have enabled the company to convert wet natural gas to dry gas, power the nation’s electric grid, while the company would sell 15% of the propane, ethane and butane by-products in the international market and make a project profit of close to $6.597 billion within  20 years period. While the company insisted that Nigeria did not build the pipeline, The Hope  notes that the processing plant was not also constructed by the company, and finds it laughable that the judgment punished Nigeria for breach of agreement, while the other failing party was compensated.

GIVEN  the fact that the said contract was drafted and signed in Nigeria, we opined that there is a colonial conspiracy in hearing the case in a British Court, and not in Nigeria. Therefore, The Hope commends the protests of Coalition of Civil Society Groups against the judgment at the British embassy.

HOWEVER,  while Nigeria focuses on investigating the circumstances and personalities involved in the design and failure of this contract; THE HOPE strongly expects that the Federal Government should apply for a stay of execution on the judgment and set in motion processes to appeal the nefarious judgment against the Nigerian people. In doing so, Nigeria may need to overhaul her legal team, and seek for legal luminaries who are versed in contractual and international law to represent her given the failure of her present team of lawyers.

ALTERNATIVELY, if in truth P&ID was sincere and passionate that Nigerians’ welfare was the focus of the contract in the first instance, they could also be magnanimous enough to return to the drawing board, build their ‘state of the art processing plant’,  re-negotiate the contract, while Nigeria also fulfills her part of the bargain.

THE Hope however doubts that the contract was signed in the first place to help Nigeria, as the circumstances surrounding it is not only phony but also nauseating to the average Nigerian on the street. P&ID however has the burden of proof over our perception by their actions and inactions.

THE Hope however frowns at the persistent nature of Nigerian government at reneging on agreements after it has been signed. The case of her failure to implement signed agreements with various labour unions and individuals in the country is shameful and alarming.

THE  nonchalant attitude of the Federal and or State Governments in Nigeria to the fulfillment of these local agreements had affected the socio-economic and political lives of her citizens. This attitude could also impinge on the willingness of multinational companies and agencies of doing business in and with Nigeria.

THE  Federal Government should desist from signing agreements with an intention of frivolity.  Furthermore, the contractual failure is a wakeup call on Nigeria for carefulness and scrutiny when it comes to appending signatures to agreement.

THE Hope therefore demands that any contractual agreement beyond the tune of $30million dollars in execution and confirmation must be brought before the National Assembly for approval, before pen is put to paper on such contracts.

Finally, The Hope appeals to the British Government in the spirit of commonwealth to intervene in this matter, and save Nigerians from the hardship that would be incurred by the harsh judgment. A payment of the $9.6billion dollars or the seizure of Nigeria’s assets to that tune would result into Nigeria’s loss of 20% of her dwindling external reserves. Britain should realize that any economic crisis in Nigeria would have a spillover effect on Europe and other countries in the world.