Mr. Michael Aondoakaa (SAN), a former Attorney General of the Federation and Minister of Justice, has disclosed how Mr. Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN), played a crucial role in preventing Nigeria from paying billions of dollars in an arbitral award to the foreign company, Process and Industrial Developments (P&ID).
The United Kingdom Royal Courts of Justice recently vindicated Nigeria’s efforts to challenge the substantial judgment debt imposed on the country in favor of P&ID. The court ruled that the initial judgment was obtained fraudulently and highlighted P&ID’s involvement in fraud, bribery, and the concealment of essential contract details.
Mr. Aondoakaa, who served as Attorney General when P&ID entered into a contract with Nigeria in 2010 to construct a gas processing plant in Calabar, Cross River State, acknowledged the pivotal role played by the Central Bank of Nigeria, under Mr. Emefiele’s leadership, in supporting Nigeria’s legal team during the case.
P&ID had claimed that the contract’s failure was due to the Nigerian government’s breach of the terms, leading to an arbitral award of $6.6 billion against Nigeria, along with pre- and post-judgment interest totaling $11 billion.
In light of this development, Mr. Aondoakaa, who was among the senior lawyers assisting Nigeria’s legal team in the London court, encouraged the current Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), to investigate other potentially fraudulent cases brought against Nigeria. He pointed to cases like Ajaokuta as examples where arbitration had been hastily pursued, posing potential risks to the country.
“I, particularly, give credit to the CBN under the then Governor, Godwin Emefiele because there was strong pressure that settlement should be made. Our team was in the minority that we must fight till the end. There was also apprehension that if we didn’t settle and the court would now give judgment against us, Nigeria would lose everything. But for them to have confidence in us, there was one man in the CBN, the Director of Legal Services; he gave us the confidence, gave us the support, and ensured that we were able to present to the UK lawyers that this was a fraud. So, I am most grateful, I completely agree with the honourable Attorney General that this is a big fraud.”
Aondoakaa’s comment on how Emefiele and few others resisted pressure, also confirmed what presidency sources revealed at the time that many, including top government officials, had mounted pressure on the then President Muhammadu Buhari to approve payment for the award to avoid a heavier penalty if the matter dragged on.
Emefiele was said to have resisted and advised the President strongly against such approval, staking his name in convincing the president that the contract was fraudulent and that the P &ID would not succeed in court if Nigeria hired competent lawyers. It was based on the assurances of Emefiele that President Buhari refused payment and rather encouraged litigation, which eventually favoured Nigeria.
The federal government had on Monday won the legal case against P&ID Limited in a London court.
The judgment was delivered after five years of legal frameworks.
Emefiele, who had been in the custody of the Department of State Services (DSS), was released Thursday night but was arrested by the Economic and Financial Crimes Commission (EFCC) shortly after.
