P&ID: Foreign reserves swell by $200m as P&ID lose again

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.