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.

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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.