Latest statements from the Federal Republic of Nigeria

July 15, 2022: 

The Federal Government of Nigeria (FRN) has been successful in its bid at the London High Court to obtain further documentation in support of its efforts to set aside the USD 11 billion arbitration award issued in 2017, which Process & Industrial Developments (P&ID) has pursued aggressively.

In today’s hearing, Mr. Justice Jacobs judged that the approach taken by P&ID to providing disclosure of WhatsApp/SMS messages had not been entirely satisfactory to date and as such it would be reasonable and proportionate for P&ID to disclose further information related to private WhatsApp/SMS messages sent between key figures associated with the company over a period of several years. The FRN hopes that disclosure of these messages will further reveal the questionable activities of the company ahead of the High Court trial due to begin in January 2023.

The Federal Republic of Nigeria is fighting to overturn a scam agreement,  procured  through fraud and corruption by a vulture-fund backed British Virgin Islands (BVI) registered shell company, P&ID.

Approximately USD 11 billion is at stake, the amount P&ID is claiming from Nigeria following an arbitration award issued in 2017. Paying such a significant sum would be catastrophic for any nation. However, for a developing country like Nigeria, the amount is egregious.

A spokesperson for the Federal Republic of Nigeria said:

“The Federal Republic of Nigeria (FRN) remains dedicated to overturning arbitral award of around USD 11bn and is leaving no stone unturned in its fight through the courts.

This is another step in our long running effort to reveal who stands to benefit from one of the world’s largest scams. Today’s judgment will help us have greater access to messages sent between the senior figures associated with P&ID which is vital ahead of the trial which will begin in the High Court in January 2023.

March 28, 2022: 
A spokesperson for the Federal Republic of Nigeria said:

The Federal Republic of Nigeria (FRN) is firmly committed to overturning the $10 billion arbitral award fraudulently secured by Process & Industrial Developments Limited (P&ID), a BVI shell company. As part of this battle, the FRN submitted a claim that the U.S. Courts did not have jurisdiction to enforce the award, as the Federal High Court of Nigeria had ruled it invalid. The recent move by the D.C. Circuit Court of Appeals to reject this claim does not constitute a victory for P&ID. Instead, the Court of Appeals merely sent the case back to the District Court to consider the merits of P&ID’s enforcement action of the arbitral award. 

The FRN’s arguments before the D.C. Circuit make up only one aspect of its fight against the $10 billion arbitration award, which is equal to ten times the country’s annual health budget. The recent decision from the D.C. Circuit will not affect the FRN’s ongoing efforts, nor has it affected its chances of success. More significantly, in February, the FRN secured a major victory in the U.S., when the Court of Appeals for the Second Circuit in New York granted Nigeria’s request for discovery from VR Capital, a vulture fund which owns 25% of P&ID. This will allow the FRN access to vital documents in its fight against P&ID. 

The FRN remains dedicated to overturning the arbitral award, and will now proceed to a full trial of the issues where the FRN’s substantive application to finally set aside the award will be heard. The fraud trial will begin in London in January 2023.

February 4, 2022: 
A spokesperson for the Federal Republic of Nigeria said:

The Federal Republic of Nigeria (FRN) is pleased that the judgment handed down by the BVI High Court on 27 July 2021 has been reversed on appeal, and that the FRN will obtain important documents from P&ID and its associated companies. 

The FRN has always been confident that its appeal would be upheld, and that the BVI High Court’s highly unusual judgment erred in fact and law.

Nigeria’s aim in the BVI was simple – to uncover who stands to benefit from one of the world’s largest scams and to secure vital documents in the fight against P&ID. The disclosure granted by the BVI Court of Appeal underlines the territory’s commitment to due process and will help to support the FRN’s pursuit of justice. The ruling vindicates the FRN’s view that the BVI High Court was wrong to deny the FRN access to important documents which will shed further light on P&ID’s highly orchestrated scam that was deliberately designed to defraud the Nigerian people.

February 5, 2021: 

On 1 February 2021, Nigeria’s Economic and Financial Crimes Commission (EFCC) arraigned Mr Muhammed Kuchazi, a former commercial director of Process and Industrial Developments (P&ID), on eight counts under the Money Laundering (Prohibition) Act 2011 relating to his involvement with P&ID.  

Through its ongoing investigations, the EFCC has uncovered evidence which suggests that Mr Kuchazi intentionally concealed facts relating to P&ID and ultimately facilitated the sham company’s attempts to defraud Nigeria for his personal gain.

P&ID and Kuchazi agreed that he would receive 3% (nearly U$300 million) of the U$6 billion arbitral award against Nigeria – at the cost of his fellow Nigerians.

A spokesperson for the Federal Republic of Nigeria said:

“The arraignment of Mr Kuchazi is the latest milestone for the Federal Republic of Nigeria in our wider fight for justice against P&ID, a shell company owned by litigation funder Lismore Capital and hedge fund VR Advisory. This signifies continued progress and momentum in our ongoing investigations to uncover the truth behind the fraud.  

This arraignment underlines the EFCC and the Buhari administration’s commitment to holding P&ID and its associates to account for their role in one of the world’s largest scams. We will not rest until we have secured justice for Nigeria and its people.”