Skip to main content

London Court orders release of $200m guarantee to Nigeria from P&ID



The Central Bank of Nigeria says the development led to a rise in the nation’s foreign reserves.

 A London court has ordered the release of the $200 million guarantee placed as security by the Nigerian government in relation to the Process and Industrial Development (P&ID) $10 billion arbitral claim.

The Central Bank of Nigeria (CBN) made this known in a series of tweets on Tuesday.

The bank said the development led to a rise in the nation’s foreign reserves.

https://platform.twitter.com/widgets.js

The CBN also disclosed that the court awarded £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5 million.

“Nigeria’s foreign exchange reserves was this morning boosted by over $200 million when the London Commercial Court ordered the release of the $200 million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 billion arbitral claim,” the CBN wrote.

“The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5 million.”

Background

Earlier in September, the Nigerian government secured a judgement of a British court to suspend an unfavourable ruling over the scandal.

A commercial court in the United Kingdom granted Nigeria’s appeal for a stay of execution of the award of $8.9 billion (about N3.2 trillion) in favour of P&ID, a controversial British firm that secured a gas contract in Nigeria.

The Royal Courts of Justice Strand, London, WC2A 2LL presided over by Justice Sir Ross Cranston said following a review of written submissions by the Nigerian government after the arbitral award, which contained “new evidence” concerning the matter in dispute, the court decided to grant “Nigeria’s applications for an extension of time and relief from sanctions.”

The P&ID conundrum became a full-blown saga last year when a U.K. judge ruled P&ID could enforce an arbitration tribunal’s 2017 ruling, now totaling $9.6 billion including interest, which found the country breached the agreement.

Nigeria’s chances of annulling the giant penalty laid on proving the 2010 gas supply arrangement was a sham designed to fail by P&ID and government officials.

An investigation by PREMIUM TIMES also revealed that the gas supply arrangement was designed to fail, partly because the company had neither the expertise nor had the government put in place necessary mechanisms for its success.

Reactions

Following the announcement of the award Tuesday, Nigeria’s Attorney-General of the Federation and Minister of Justice, Abubakar Malami, expressed appreciation over the development.

Mr Malami, in a statement by Umar Gwandu, his Special Assistant on Media and Public Relations, said he was glad over the victory “in addition to the multiple successes recorded so far by the ministry”.

“The recent judgment on the Nigeria’s cases against P&ID demonstrated an outcome of strong commitment and determination of the present administration through the office of the Attorney-General of the Federation and Minister of Justice to tackle fraud, corruption, non-compliance with the due process.


“Since the minister took over the coordination of the case, it has been a matter of success 

upon success,’’ he added.

According to him, “as a result of the determination of the Attorney-General, the following successes, relating to the matter, were recorded:

“Order for stay of execution of the arbitral award was granted, Nigeria recorded tremendous success challenging the order for cash deposit of $200m to bank guarantee.

“Success was equally recorded for having an order for the extension of time to challenge award and agreement, Nigeria was successful as the court award payment of legal cost of €1.5m in favour of the country.”

He noted that “other successes” include the court order for the release of bank guarantee in favour of Nigeria, award of payment of €70,000 to Nigeria as further legal cost relating to the issue “and Nigeria obtaining multiple positive rulings to obtain information from banks abroad which helped in establishing fraud.”

Comments

Post a Comment

Popular posts from this blog

Meek Mill denied new trial by controversial Judge Genece Brinkley

                                    Rapper, Meek Mill has been denied a new trial in a ruling by controversial Judge Genece Brinkley . According to court documents viewed by Pitchfork, the widely criticized Judge Genece Brinkley announced Monday that the court would be denying his petition for PCRA relief as Meek allegedly "failed to meet his burden of proof" when presenting evidence that one of his arresting officers had credibility issues. This comes after it was discovered that the police officer who testified at his original criminal trial years ago had his name placed on a list of corrupt Philadelphia cops. Following the new evidence on ground, the Philadelphia District Attorney, Larry Krasner, recommended that Meek be granted a new trial. After Meek appeared in court to demand a new...
Post a Comment
Read more

Legendary actor, Jet Li looking unrecognizable amid battle with 'hyperthyroidism and spinal problems' surfaces

New photos supposedly to be of legendary Beijing-born action star, Jet Li , 55, has emerged online and many are speculating that his health issues may have deteriorated. The photos allegedly showed Li, who has reportedly been battling health problems - including hyperthyroidism, a heart condition, and past leg/spine injuries from stunts for years was recently pictured posing with an unidentified man assisting him while visiting a temple in Tibet. In 2010, the actor was diagnosed with hyperthyroidism, which reportedly caused his weight to fluctuate. His doctor reportedly advised him against exercising, as some of the symptoms of the illness included muscle weakness and sleeping problems. Years later, in a 2016 interview with The Straits Times, Li said that media reports of his health were greatly exaggerated. He added that he had recovered from hyperthyroidism, and added: "There is nothing to worry about my health." But the South China Morning Post ...
Post a Comment
Read more

Governor Zulum cries out - Boko Haram are now recruiting our children

  Governor Babagana Zulum has raised an alarm of children being recruited into the Boko Haram terrorist group.    The Governor said this while receiving a committee of members of the House Of Representatives at his office in Maiduguri, Borno State capital.   Zulum who linked the recruitment of kids into the terrorist group to the high rate of unemployment in the state, also revealed that there are more than 700,000 Internally Displaced Persons in Monguno and another 400,000 in Gamboru Ngala without access to their farmlands.   He said;    "The only solution we have now is to ensure the safe return of our people to their homes in a dignified manner. If nothing is done believe me sincerely we shall face a very serious challenge even more than what we are facing now. “This is because right now the insurgents are recruiting many of our children into the sect because of the increasing unemployment rate."   The Borno state government suggested...
Post a Comment
Read more