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How court ruling on P&ID boosted Nigeria’s foreign reserves by $200 Million

By David Oladele

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P&ID

Nigeria’s Foreign Exchange Reserves were on Tuesday, September 29, boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.

Techeconomy.ng gathered the court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.

The Court presided over by Sir Ross Cranston rejected the request of P&ID to increase the security to $400 million and instead ordered a cost of 70,000 Euros against P&ID.

Recall that the same court, earlier in September 2020, had also granted another cost of 1.5Million Euros against P&ID.

This was contained in a statement released by the Governor, Central Bank of Nigeria (CBN), Godwin Emefiele on Tuesday.

Emefiele explained that the Court rejected the P&ID’s application to increase the guarantee, which he noted was clearly intended to be a diversionary tactic and entirely misconceived.

The CBN governor said: “Due to the substantial evidence of prima facie fraud established before the Court, we are pleased that the Judge has agreed to release the guarantee.

“This release, which is accretion into the reserves will further enhance the nation’s management of the exchange rate of its domestic currency, the Naira while ensuring monetary and price stability.”

The CBN explained further that a government source had assured “the Nigerian Government is determined to secure justice for the people of Nigeria – no matter how long it takes”.

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