Foreign Reserves Rose by Over $200 Million to $36 Billion after London Commerce Court Returned P&ID Nigeria Case’s Security Fund
The Central Bank of Nigeria on Tuesday said the nation’s foreign reserves rose by US$200 million to US$35.746 billion following the return of the $200 million security used in the discredited P&ID $10 billion Arbitral claim.
The P&ID had taken Nigeria to London Commerce Court over breach of contractual agreement, previous fine and accumulated interest to the tune of $10 billion over a period of 10 years.
The company had claimed it invested a substantial amount in a contract project signed between itself and the Nigerian government, only for the Federal Government to backout or failed to fulfil its end of the deal.
An accusation the Federal Government denied and described the whole project as a scam orchestrated by some Nigerians and foreign entities looking to profit from the nation’s lack of proper documentation.
The government fought back with evidence proving that the P&ID supposed contract was a sham as the contract was not signed or approved by the then president who was way because of sickness.
The Federal Government was asked to deposit security of $200 million to appeal the case in London commerce court.
After proving beyond a reasonable doubt that the project was a fraud, the London commerce court has now returned the $200 million security plus the £1.5 million previous awarded to Nigeria and another £70,000 for the cost incurred during the trial.
In a tweet on Tuesday, the apex bank said “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million 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.”
