Headlines
British court orders release of $200m security deposit by Nigeria in P&ID case
BY NICHOLAS ABE
The London Commercial Court has ordered the release of $200 million deposit by Nigeria as security for stay of execution order against the execution of the Arbitral award of $9.6 billion, in favour of Process and Industrial Development (P&ID) Limited.
The Central Bank of Nigeria (CBN) said via its Twitter handle @cenbank that the court order has increased Nigeria’s Foreign Reserves by $200 million, as of today, Tuesday.
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 against P&ID.
That same court, earlier in September 2020, had also granted another cost of £1.5 million against P&ID.
CBN Governor, 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.
“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,” Emefiele said.
Today’s order was seen as another significant victory for Nigeria, in her determination to overturn the US$10 billion award.
Justice Cranston had in a landmark judgment, on September 4, granted the Federal Government permission to challenge the final arbitral award delivered by a London arbitration tribunal in favour of P&ID and against Nigeria in January 2017.
READ: UPDATE: UK court gives Nigeria 60 days to pay $200 million in P&ID case pending appeal
The judge had agreed that there was prima facie case of fraud in the agreements leading to the award which should be inquired into.
The award which stood at $9.6 billion as of 2019 has risen to $10 billion.
The tribunal had held Nigeria liable for the alleged breach of a Gas Supply Processing Agreement it entered into with P&ID in 2010.
But the Nigerian government had approached the UK court requesting an extension of time within which to challenge the final arbitral award on the basis that the GSPA and the award were tainted by fraud.
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.”
Nigeria’s anti-corruption agencies had been directed to unravel the roles played by various government functionaries and private sector operators who connived with P &ID in a contract that was clearly designed to defraud the nation.
Some of those who played key roles have died but others who are alive have been sued by the federal government.