Nigeria Foreign Reserves Get $200 Million From P&ID Gas Contract Case

Nigeria's foreign exchange reserves received a boost following a UK court judgement that ordered $200 million be released to Nigeria. The amount is from the P&ID lawsuit Nigeria is battling in a UK court.

This was revealed by the Central Bank of Nigeria (CBN).

According to the CBN, the $200 million was a guarantee used as a security for the execution of the P&ID $10 billion lawsuit which resulted from a failed project between P&ID and the Goodluck Jonathan administration.

"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." CBN said.

UPDATE: Jay Jay Okocha, Wife, CAC Accused Of Defrauding BDC Business Partners

What You Need To Know About P&ID Case

AllNews recalls that Nigeria and P&ID are involved in a lawsuit that had the company accusing Nigeria of breaching a gas supply contract. P&ID was contracted in 2010 to build a gas-processing plant, while the government was to supply the raw materials.

But according to P&ID, Nigeria reneged on the agreement. This led to a lawsuit that saw a London arbitration court - in 2017 - award P&ID $9.8 billion, including interests over the years.

The $9.8 billion is worth about 30% of the country’s foreign reserves. After the arbitration order, Nigeria has been on the defensive, moving to prove the deal was a sham and developed to fail from the onset.

 Although P&ID denied the allegation brought against it by Nigeria, the country's government stated in the court ruling that “The only thing P&ID engineered was a fraudulent arbitration claim."

Note that before the $200 million judgement Nigeria had also obtained court order to access P&ID funder, VR Capital Group documents.