P&ID: UK court orders release of $200m guarantee to Nigeria
A British Commercial Court has ordered the release of the $200 million used as a guarantee in the case against Process & Industrial Development (P&ID) to the Federal Government.
The Central Bank of Nigeria, which disclosed this on its Twitter handle on Tuesday, said the court also awarded £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5 million.
The apex bank wrote: “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 court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.”
The court had earlier this month granted the federal government permission to challenge the arbitral award of $9.6billion against Nigeria for the failed Gas Supply and Processing Agreement signed with P&ID in 2010.
Justice Ross Cranston, who delivered the judgment, also ordered the firm to pay £1.5million to Nigeria within 21 days.