P&ID: Court orders return of $200m guarantee-deposit to Nigeria
The London Commercial court has ordered release of the $200million guarantee Nigeria placed as security for the stay of execution of Messrs. Process and Industrial Development Limited (P&ID’s) claims.
Central Bank of Nigeria (CBN) disclosed this in a press release on Tuesday. According to statement, the $200 million security deposit has swollen the country’s foreign reserve.
The CBN said Nigeria filed an appeal “against the judgment of Justice Butcher for the execution of the Arbitral award of $10billion 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”.
Recall that the court in September 2020 also granted another cost of £1.5Million against P&ID.
Commenting on the outcome, CBN Governor, Godwin Emefiele, expressed pleasure 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.
The CBN governor noted that, “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”.
The CBN said a government source had assured that: “the Nigerian Government is determined to secure justice for the people of Nigeria – no matter how long it takes”.