Home Business P&ID’s $10bn Arbitral Claim: $200m Injected Into FX on Tuesday, Says CB

P&ID’s $10bn Arbitral Claim: $200m Injected Into FX on Tuesday, Says CB

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A United Kingdom Commercial Court on Tuesday ordered the release of the $200million guarantee put in place as security in respect of the execution of the much-discredited Process and Industrial Development $10billion arbitral claim.

The Central Bank of Nigeria (CBN) revealed this on Tuesday via its official Twitter handle. The apex bank also said the court awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5million.

The apex bank tweets that, “Nigeria’s foreign exchange reserves were this morning boosted by over $200 million when the London Commercial Court ordered the release of the $200 million guarantees put in place as security in respect of the execution of the much discredited P&ID $10 billion arbitral claims.

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

A UK court had ordered the P&ID to pay £1.5million to Nigeria within 21 days.

Justice Ross Cranston had in a landmark judgment, on September 4, granted the Federal Government permission to challenge the final arbitral award delivered by a London arbitration tribunal in favour of P&ID and against Nigeria in January 2017.

The judge, in the judgment, agreed that there was prima facie case of fraud in the agreements leading to the award which should be inquired into.

The award which stood at $9.6bn as of 2019 has risen to $10bn. The tribunal had held Nigeria liable for the alleged breach of a Gas Supply Processing Agreement it entered into with P&ID in 2010.

 

 

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