A United Kingdom Commercial Court on Tuesday ordered the release of the $200m guarantee put in place as security in respect of the execution of the much-discredited Process and Industrial Development ( P&ID) company’s $10bn arbitral claim.
The Central Bank of Nigeria revealed this today via its official Twitter handle, @cenbank.
The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.
— Central Bank of Nigeria (@cenbank) September 29, 2020
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 currency, the Naira.
“This is a further and significant victory for Nigeria in our ongoing fight to overturn the US$10 billion award procured through fraud and corruption by P&ID and former government officials.
“P&ID and its backers, Lismore Capital and VR Advisory, are increasingly seeing their case slip between their fingers. They continue to resort to employing delay tactics, disseminating misleading claims, and taking every step to obstruct our investigations across multiple jurisdictions.
“The FRN will not rest until we 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 in September successfully sought the right to appeal an August ruling that would have converted the arbitration award to a judgment, which would make it easier for P&ID to seize its assets.
Justice Cranston J. of the United Kingdom High Court had on September 10, 2020 ordered P&ID to make an interim payment of more than £1.5 million to the Nigerian Federal Government within 21 days.
The £1.5 million was to cover legal costs the federal government incurred as part of its successful application for the extension of time to challenge the arbitration award and procedural hearing earlier in the year.