Nigeria's $11 bln damages bill for failed gas project thrown out by UK court

London’s High Court has dismissed an $11 billion damages claim against Nigeria over a collapsed gas processing project tainted by bribery. The West African nation faced a significant financial burden, equivalent to approximately a third of its foreign exchange reserves, following an arbitration brought by a British Virgin Islands-based entity, Process & Industrial Developments (P&ID). The court’s ruling in October determined that the contract in question was secured through bribery, with P&ID accused of paying illicit payments to a Nigerian oil ministry official. This decision marks a significant legal development, shedding light on corrupt practices and safeguarding Nigeria from the substantial financial liability associated with the failed gas processing project. But the High Court ruled in October that the contract was procured by Process & Industrial Developments (P&ID) paying bribes to a Nigerian oil ministry official. Judge Robin Knowles also found that P&ID failed to disclose the bribery when it later took Nigeria to arbitration. He said in a further ruling on Thursday that the damages award should be thrown out immediately, rejecting P&ID’s argument that the case should be sent back to arbitration. P&ID was also refused permission to appeal against the ruling, though the company can apply directly to the Court of Appeal. With inputs from Reuters.