LONDON – Nigeria’s Foreign Reserves received a $200 million boost on
Tuesday, September 29, 2020, following the order of the London
Commercial court, instructing the release of the $200million guarantee put
in place as security for the stay of execution granted Nigeria for the appeal
filed against the judgment of Justice Butcher for the execution of the
Arbitral award of $10b in favour of Messrs. Process and Industrial
Development Limited (P&ID).
The Court presided over by Sir Ross Cranston rejected the request of P&ID
to increase the security to $400 million and instead ordered cost of £70,000
against P&ID. It will be recalled that same court, earlier in September 2020,
had also granted another cost of £1.5Million against P&ID.
Commenting on the outcome, the Governor, Central Bank of Nigeria (CBN),
Godwin Emefiele expressed pleasure 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.
According to him, “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 an 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,” he added.
Tuesday’s order is seen as a further and significant victory for Nigeria in its
determination to overturn the US$10 billion award procured through fraud
and corruption by P&ID and former government officials.
Analysts are of the view that P&ID and its backers, Lismore Capital and VR
Advisory, are increasingly fighting a lost battle, as they continue to resort to
employing delay tactics, disseminating misleading claims, and taking every
step to obstruct investigations across multiple jurisdictions.
A government source said: “The Nigerian Government is determined to
secure justice for the people of Nigeria – no matter how long it takes.
Investigations are ongoing, and we are confident that more of the truth will
be revealed over the coming months.”
