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P&ID: Court Victory Boosts Nigeria Foreign Reserve with $200m

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*‘Multiple Successes’ Against P&ID In Court Evidence Of FG’s Resolve To Tackle Corruption–Malami

Nigeria’s Foreign Exchange Reserves was on Tuesday boosted by over $200m when the London Commercial Court ordered the released of the $200m guarantee put in place as security in respect of the execution of the much discredited P&ID $10bn Arbitral Claim.

Figures from the Central Bank of Nigeria puts the nation’s reserves at $36.2bn

The boost in the nation’s foreign reserves followed an order given on Tuesday by a London Commercial Court for the stay of execution granted Nigeria for the appeal filed against the judgment of Justice Butcher.

The court also awarded a £70,000 cost in favor of Nigeria in addition to an earlier award of £1.5m.

The Central Bank of Nigeria confirmed the development in a tweet on Tuesday.

P&ID had sought to increase the security to $400m, but the court presided over by Sir Ross Cranston rejected the request and ordered cost of £70,000 against P&ID.

The court had earlier in the month granted another cost of £1.5m against P&ID.

The CBN tweet reads, “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200m when the London Commercial Court ordered the released of the $200m guarantee put in place as security in respect of the execution of the much discredited P&ID $10bn Arbitral Claim.

“The court also awarded a £70,000 cost in favor of Nigeria in addition to an earlier award of £1.5m.”

Commenting on the outcome, the Governor of the Central Bank of Nigeria, Godwin Emefiele, 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.

“We are also pleased that the Court has rejected P&ID’s application to increase the guarantee, which was clearly intended to be a diversionary tactic and entirely misconceived. This release which is an accretion into the reserves will further enhance the nation’s management of the exchange rate of its domestic.”

To this end, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami SAN, says the ministry is happy that the country was making progress in its case against the Process and Industrial Development’s (P&ID) Gas Supply Processing Agreement (GSPA) of 2010.

The contract never materialized and Malami had stressed that the whole P&ID issue was fraudulent from the onset and a scheme against the country.

He said that the court ruling was a win-win for the country among other success stories so far recorded.

“We are glad having this victory in addition to multiple successes recorded so far.

“The recent judgement on the Nigeria’s cases against P&ID demonstrated an outcome of strong commitment and determination of the present Federal Government through the Office of the Attorney-General of the Federation and Minister of Justice to tackle fraud, corruption, non-compliance with the due process.

“Since the time the Attorney-General of the Federation and Minister of Justice took over the coordination of the case, it has been a matter of success upon success,” Malami stressed in a statement issued by his spokesperson, Dr. Umar Jibrilu Gwandu.

The United Kingdom High Court had granted the federal government’s application for an extension of time, even as it sought to upturn about $10 billion award against it.

Malami held that while rejoicing over the ruling, it was hopeful and determined that all corrupt schemes against the country, be it P&ID or any other, would be quashed within the provisions of the law.

“Among other successes, you may recalled that as a result of the determination of the Attorney-General of the Federation, the following successes, relating to the matter, were recorded:

  1. Order for stay of execution of the arbitral award was granted.
  2. Nigeria recorded tremendous success challenging the order for cash deposit of $200m to bank guarantee.
  3. Success was equally recorded for having an order for the extension of time to challenge award and agreement.
  4. Nigeria was successful as the court award payment of legal cost of €1.5m in favour of the country.
  5. The Court ordered release of bank guarantee in favour of the Federal Government of Nigeria.
  6. Award of payment of €70,00 to Nigeria as further legal cost relating to the issue.
  7. Nigeria obtains multiple positive rulings to obtain information from banks abroad which helped in establishing fraud,” the statement read.


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