Procedural Background

This ruling addresses an application by the Defendant, the Federal Republic of Nigeria, for an extension of time to comply with a condition attached to a stay of execution of an arbitral award. In a prior order dated 26 September 2019, the High Court granted Nigeria permission to appeal an enforcement order regarding a US$6.6 billion arbitral award in favor of Process & Industrial Developments Limited (P&ID). The stay of execution was conditioned upon Nigeria paying US$200 million into court within 60 days. Shortly before the deadline, Nigeria filed an extension application alongside a variation application seeking to revoke the condition entirely.

Parties' Positions

Nigeria argued that an extension was warranted due to a material change in circumstances, specifically alleging newly discovered evidence that the underlying contract and arbitral award were procured by fraud and bribery. Furthermore, Nigeria contended it was practically unable to meet the payment deadline due to national budget constraints and the lengthy legislative process required for a supplementary appropriation bill.

Court's Analysis and Decision

Mr Justice Butcher refused the extension application. The Court held that the fraud allegations, even if substantiated, did not justify delaying the security payment, as Nigeria could later seek the return of the funds if successful. Regarding the inability to pay, the Court found that Nigeria failed to demonstrate reasonable diligence. The Court noted that prompt steps were not taken following the original order, and alternatives such as securing a bank guarantee were explored too late in the 60-day period. Emphasizing the need for finality and compliance with court orders, the Court concluded there were no valid grounds to extend the compliance period and dismissed the application.