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Tuesday, September 29, 2020 07:03
PM /by CBN/ Header Image Credit: CBN
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 Euros against P&ID. It will be recalled that same court, earlier in September
2020, had also granted another cost of 1.5Million Euros 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.
Analysts
are of the view that P&ID and its backers, Lismore Capital and VR Advisory,
are increasingly 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.
A
government source said: "The Nigerian Government is determined to 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."
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