In a 2015 survey carried out by Nigerians in the Square Mile (NISM) about the view of the City of London on Nigeria as an investment destination, it was concluded that “Nigeria is scary from afar, but far from scary.” The question now is, has the infamous case of Process & Industrial Development (P&ID) made Nigeria more scary for investors?

Under the ‘‘Gas Supply and Processing Agreement for Accelerated Gas Development” (the GSPA), Nigeria was to supply specified quantities of “wet” gas to Gas Processing Facilities (GPFs) constructed by P&ID. P&ID was to strip the wet gas into “lean” gas, to be delivered to Nigeria to be used for power generation, whilst the remaining natural waste products were to be retained by P&ID for onward sale. The agreement was to last for 20 years. Nigeria did not supply any wet gas and P&ID did not construct any GPF. P&ID subsequently obtained an arbitration award worth $11 billion. Nigeria approached the English court to set aside the award on the well-established legal principle that “fraud unravels all” and Nigeria won!

Following the decisions of the High Court of Justice of England and Wales firstly by Sir Ross Cranston in 2020 and more recently by Mr Justice Bowles, the Nigerian press has been full of jubilation, celebrating the judgments as a heroic victory, which overturned a potential liability of $11 billion. What has been less scrutinised in this labyrinth of international legal battles is that the case uncovered a detailed web of deceit, collusion, and compromise involving Nigerian civil servants and professionals who alongside alleged foreign investors played a pivotal role in the controversial contract with P&ID.

The court proceedings revealed a disturbing cast of characters, including high-ranking Nigerian officials and professionals who facilitated the P&ID contract without due diligence, failed to monitor performance, compromised confidential information, and ultimately failed to adequately represent Nigeria in the Arbitration. Ms Grace Taiga, the lawyer who supervised the preparation and execution of the ill-fated contract, Lukman Riwan (now deceased), the Minister, who signed the contract, government professionals and external lawyers, were shown to have received a substantial amount of money in bribes put an enormous amount of pressure on Nigeria to settle the debt that was not validly owed. These professionals were entrusted with safeguarding Nigeria’s best interest on the international stage, and yet they were found to have facilitated and promoted the P&ID case to the detriment of Nigeria. The compromised integrity of these professionals has both eroded public trust and jeopardised the interest of foreign investors in Nigeria.

While acknowledging President Bola Tinubu’s imperfections, even his fiercest critics will readily accept that notable business acumen is not one of his failings. Nevertheless, the fallout of the P&ID case and the negative impact on the transparency, integrity and accountability of Nigerian officials and professionals is one which will stretch and test his business acuity to the limit.

Tinubu has crisscrossed the globe since June 2023, engaging in a series of diplomatic efforts aimed at positioning Nigeria as an attractive investment destination. Tinubu has visited various economic forums with leaders of major global corporations during regional investment summits, fostering direct dialogues on potential investments and emphasising building strategic partnerships in sectors crucial to Nigeria’s economic development, including energy, infrastructure, and technology. The aftermath of the P&ID case has left an indelible mark on foreign investor sentiment, impacting the success of Tinubu’s efforts. Major financial centres like the City of London and New York may now approach Nigeria’s investment requests cautiously post-P&ID.

The debacle of the printing of currency contracts and corruption under the erstwhile Central Bank Governor, Godwin Emefiele, and other allegations against him have only damaged the integrity of Nigeria’s financial institutions further. Earlier this year, alongside South Africa, Nigeria found itself on the Financial Action Task Force’s (FATF) ‘grey list,’ which includes countries with strategic deficiencies in their anti-financial crime regimes. Nigeria’s persistent economic issues, such as inflation and unemployment, not only affect the country’s overall economic outlook but also introduce new uncertainty for foreign investors.

As the largest economy in Africa, Nigeria holds immense potential, with abundant resources, a sizable population, a skilled workforce, and the ability to become a true ‘powerhouse’ on the continent and indeed in the world. While the country possesses institutional and legislative frameworks to address financial integrity challenges, effective implementation remains a key gap and flaw. To fully unlock its potential, Nigeria must fortify the integrity of its financial system by combating corruption, addressing economic challenges, and fostering trust to enhance financial inclusion and attract investment. The government should urgently reflect on the lessons that Nigeria must learn from the P&ID case to strengthen its anti-corruption infrastructure to reassure foreign investors.

The Presidency and the Attorney General of the Federation must make comprehensive policy adjustment that is visible to the international community generally and foreign investors in particular. Such policy adjustments are to address regulatory gaps and lacuna, enhance contract enforcement, and foster transparency and accountability. Corrupt elements within the Civil Service should not only be exposed, but must be removed from office, stripped of any national honour, and prosecuted to the fullest extent of the law possible. Their ill-gotten wealth must be disgorged. Additionally, investing in the training and professional development of civil servants can enhance their ethical conduct and ensure they act in the best interest of the nation. In this context, the role of an independent judiciary and anti-corruption agencies in enforcing stringent laws effectively must be visibly enhanced by avoiding political interference. Nigeria must visibly institute robust measures that strengthen oversight mechanisms, enforce stringent due diligence procedures, and implement transparent procurement processes.

As Tinubu continues his diplomatic endeavours towards attracting foreign investors, the P&ID case underscores the imperative for Nigeria to simultaneously fortify its anti-corruption architectural framework. The blending of strategic global outreach and robust anti-corruption policies will be instrumental in rebuilding trust, attracting foreign investments, and securing a prosperous future for the nation. By holding those responsible accountable and implementing preventative measures, Nigeria can emerge stronger, and better equipped to protect its interests in the global arena. The P&ID case should serve as a catalyst for positive change, signalling a commitment to transparency, accountability, and the protection of national assets.Top of Form
Onifade is a practising solicitor advocate at Setfords Solicitors in London and the erstwhile chair of NISM.