$9 Billion P&ID Debt: Agbakoba Advocates For National Arbitration Policy To Avoid Future Occurrence

 Human right activist and lawyer, Olisa Agbakoba (SAN) has advocated for a National Arbitration Policy for Nigeria to avoid future occurrence of the $8.9billion arbitral award against Nigeria by a UK court

Agbakoba, former President of Nigerian Bar Association (NBA) said the judgement would have been avoided if the country’s leaders have embraced the advocacy of National Arbitration Policy 20 years ago.

The United Kingdom, Business & Property Courts (the Commercial Court), presided by Justice Butcher, on August 20 granted a request for the enforcement of a March 20, 2013, award against Nigeria by a District Circuit Court in Washington DC.

The award in favour of Process & Industrial Development Limited (P&ID), a British engineering firm, followed an alleged breach of a 2010 gas contract agreement by the company and the Nigerian government.

Agbakoba in a public letter written to President Muhammadu Buhari on Monday said that “I refer to the recent enforcement order of US$9, 000, 000, 000 made against Nigeria, by an English High Court, which was based upon an arbitration award secured by a company, Process and Industrial Developments Limited (P&ID). This monumental award secured by a foreign company against Nigeria has grave far-reaching implications for the country, considering that it represents almost 20% of our foreign reserves, and 25% of our national budget. I write purely out of concern for national interests. This incident would have been avoidable, if the advocacy for a National Arbitration Policy had been embraced over twenty years ago.

“I recommend an immediate and urgent audit as we are aware that there are a significant number of arbitral awards made against Nigeria. A National Arbitration Policy promotes national interest by ensuring that the resolution of disputes between Nigeria and foreign investors in relation to government contracts will be determined by institutional arbitration mechanisms, which will have the seat of arbitration in Nigeria. Please note that some countries have already enacted National Arbitration Policies.