An Arbitral Tribunal sitting at the Lagos Court of Arbitration has awarded the federal government a whopping $1.69bn in a dispute between the Nigerian Petroleum Development Company (NPDC) Limited and Atlantic Energy Drilling Concepts Nigeria Limited and Atlantic Energy Brass Development Ltd.

The landmark award in favour of the government came just as reports revealed that the protracted legal battle between a British firm, Process and Industrial Developments Limited (P & ID) and the Nigerian Government has taken a turn for the worst as the foreign firm, which won a staggering judgment, now worth $9 billion against Nigeria is trying to confirm the award in courtrooms in the United States and London, which would allow it (P&ID) to start seizing Nigerian assets in the U.S. and the U.K.

The arbitral proceedings in Nigeria was instituted by the claimants, Atlantic Energy Drilling Concepts Nigeria Limited and Atlantic Energy Brass Development Limited) on August 15, 2016, against the NPDC.

In resolving the dispute in favour of NPDC, the Arbitral Tribunal dismissed Atlantic Energy’s claims and awarded the sum of US$1,690,900,391.39, US$200,000 and N1,500,000 as costs in favour of NPDC.

It directed that the amount be paid within 21 days from the date of the Award for crude oil lifted from OMLs 26, 30, 34 and 42 (Forcados Assets) and OMLs 60, 61, 62 and 63 (Brass Assets).

The tribunal affirmed all the submissions of the lead counsel to NPDC, Professor Fabian Ajogwu (SAN) of Kenna Partners, who held that Atlantic Energy and its sister companies were indebted to NPDC for their failure to perform their financial obligations under the respective Strategic Alliance Agreements (SAAs).

A hedge fund managed by VR Capital Group has taken a large stake in Process & Industrial Developments (P&ID), an energy company that won a claim against Nigeria which is now worth $9bn.

P&ID, a small energy company founded by two Irishmen, is trying to make Nigeria settle or allow the company to start seizing assets, according to a report from Bloomberg.

Nigeria did not honour a deal allowing the small natural gas company to harvest hydrocarbons.

Two years ago, P&ID won a decision against the government of Nigeria, with a London arbitration tribunal awarding it $6.6bn while interest of $1m is accruing daily.

P&ID, owned by the hedge fund and a firm called Lismore Capital, has hired lobbyists, lawyers, and a public-relations firm to press for collection of the award.

The legal team is also trying to confirm the award in Washington and London courts, which would allow P&ID to start seizing Nigerian assets in the US and the UK.

The company was founded by Irishmen Brendan Cahill and Michael Quinn, a music manager and oil man who died in 2015.

Cahill told Bloomberg: “It is disappointing that Nigeria chose to repudiate the terms of a deal that would have benefited the country by bringing electricity to millions of its citizens.”

A Federal High Court in Lagos has referred a dispute involving some members of the Registered Trustees of Association of Nigeria Licensed Customs Agents (ANLCA) to arbitration.

Justice Saliu Saidu stayed proceedings in the case, pending the conclusion of arbitration by the parties in accordance with ANCLA constitution.

The judge gave the directive on February 14, after discharging an earlier ex- parte order it granted on January 9, this year.

This is contrary to report that the judge had vacated restraining order on the group’s election.

The directive followed an application by first defence counsel O.A Yakubu and 2nd to 20th defendants’ counsel Dada Awosika, while the plaintiffs were represented by I. J. Olabode.

Justice Saidu held: “If all the plaintiff is seeking for are just interpretation of ANCLA, then there will not be any need for an interim order of this court. I hereby discharge the ex-parte order dated January 19 2019 and by virtue of Section 5 of the Arbitration and Conciliation Act, I stay proceedings in this case, pending the arbitral proceedings by the parties herein in accordance with the constitution of ANCLA.”

In the suit, marked, FHC/L/CS/05/2019, a faction of ANLCA in Lagos led by Batuns International Global Link and Mr Babatunde Adekoya were the plaintiffs.

They sued the Registered Trustees of ANLCA and 19 others, praying the court for, among other reliefs, an order stopping the defendants from conducting elections into the different offices into the Lagos chapter of the association.

Other defendants in the suit are: Mac-Tonnel Nigeria Limited, Mr. Tony I. Nwabunike, Wealthy Honey Investment Limited, Mr. Kayode Farinto, Mickey Excellence Nigeria Limited, Mikhaila Babatunde and 13 others.

Pro-Chancellor of the University of Lagos (UNILAG), Dr. Wale Babalakin (SAN), has described as timely, book published by two accomplished chartered arbitrators on arbitration and Alternative Dispute Resolution (ADR) practice. Babalakin, who commended the authors said the book is very topical.

The book titled: “Handbook of Arbitration and ADR Practice in Nigeria” was authored by the founding member of the Board of Governors of the Cairo International Centre for Arbitration and the Kigali International Arbitration Centre (KIAC), Chief (Mrs.) Tinuade Oyekunle, and a former Attorney-General of the Federation (AGF) and Minister of Justice, Chief Bayo Ojo (SAN).

Oyekunle and Ojo, both described as Nigeria’s first and second chartered arbitrators, launched the book last Thursday at the Nigerian Institute of International Affairs in Lagos.

The event was honoured by arbitrators, Alternative Dispute Resolution (ADR) practitioners, jurists, senior lawyers, among others.

A former Nigerian Permanent Representative to the United Nations, Chief Arthur Mbanefo recommended that the book “be adopted by all institutions of legal studies and practice in Nigeria as a standard text book for arbitration and ADR practice in Nigeria as well as a useful book for reference purposes.”

Mbanefo, the chairman of the event, said: “The importance of this book becomes clear when one considers the current growth in the practice of commercial arbitration and ADR in Nigeria.”

Mbanefo commended the authors for their contributions to the knowledge of ADR.Director of Research Nigerian Institute of Advanced Legal Studies (NIALS), Prof. Paul Idornigie (SAN), who reviewed the book, praised the authors for bringing their nearly joint 80 years of arbitration experience to bear on the subject matter.

“The authors are very competent to write a book of this nature,” Idornigie said.He noted that the title of the book had been a subject of debate among academics, and that with its 24 chapters and 521 pages, the book drew attention to some lacunae in the Arbitration and Conciliation Act (ACA), such as the non-definition of arbitration. Idornigie, however, observed that while conciliation and mediation were consensual, arbitration was both consensual and adjudicatory.

The professor noted the authors’ views that the rapid expansion of ADR around the world, might one day replace litigation in civil matters.

According to him, government support is imperative.The book presenter at the event was the chairman, Gibraltar Holdings Ltd, Sir Olu Okeowo. Co-author, Oyekunle recommended the book to everyone. She said: “The taste of the pudding is in the eating and, when our colleagues handle the book, read it, I’m sure it will be of great benefit, to everyone, including judges, in-house lawyers, students, etc. The book is very comprehensive.”

Explaining the idea behind the book, Ojo said: “The whole idea is to let people – students, judges – be knowledgeable about the process. For those who are practitioners, it is a ready companion, a ready tool which they can use as a reference from day to day.

“You find that in Nigeria, people hardly write books, we don’t have this book culture, so there is a dearth of books in most areas, so, this is to put something down for the coming generation to learn from, to get inspired and to achieve greater heights.”

Guests at the launch included Justice of the Court of Appeal, Justice Folashade Ojo, Adetunji Fadairo (SAN), Prof Fidelis Oditah (SAN), Kemi Balogun (SAN), Ayodele Akintunde (SAN), Tunde Busari (SAN), Adetunji Oyeyipo (SAN), among others.