Home Editorials P&ID: Foreign Reserves swells as Fed Govt gets $200m refund

P&ID: Foreign Reserves swells as Fed Govt gets $200m refund

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From Nduka Chiejina, (Asst Editor), Abuja

Nigeria’s foreign reserves was boosted yesterday following a London Commercial Court’s $200million  security guarantee release for the stay of execution of Messrs Process and Industrial Development Limited’s (P&ID’s) claims.

A statement from the Central Bank of Nigeria (CBN) said the release of the security deposit has swollen the country’s foreign reserves.

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)”.

However, 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, the CBN said.

It will be recalled that same court, earlier in September, had also granted another cost of £1.5million 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 intended to diversionary and entirely misconceived.

Read Also: P&ID: Court orders return of $200m guarantee to Nigeria

“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.

Yesterday’s order, the CBN governor noted, “is seen as a further and significant victory for Nigeria in its determination to overturn the $10 billion award procured through fraud and corruption by P&ID and former government officials”.

Analysts said P&ID and its backers, Lismore Capital and VR Advisory, are fighting a lost battle, as they continue to resort to employing delay tactics, disseminating misleading claims, and taking every step to obstruct investigations across multiple jurisdictions.

The CBN in its statement said a government source had assured “the Nigerian Government is determined to secure justice for the people of Nigeria – no matter how long it takes”.

Also that “investigations are ongoing, and we are confident that more of the truth will be revealed over the coming months.”

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