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Arbitration: Nigeria and its foreign exchange reserves suspended in London

27/09/2019
Source : Financial Afrik
Categories: General Information

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On 26 September, the UK Commercial Court approved the Nigerian government's request for a "stay of execution" that would prevent the plaintiff, Process and Industrial Developments Limited (P&ID), a small company registered in the British Virgin Islands founded by two Irish business partners, enforce the earlier judgment of the United Kingdom Arbitration Tribunal while the case was being heard on appeal.

A month earlier, the London court had heavily condemned Abuja to pay the equivalent of $ 9.6 billion, or a fifth of its foreign exchange reserves, to P & ID due, the plaintiff argued, to the failure of the Nigerian state in the delivery of gas under a public-private contract concluded in 2010.

This reprieve celebrated as a victory by Abuja does not seem to be one to see the comment of P & ID, welcoming the decision forcing Nigeria to pay it $ 200 million within 60 days to suspend the execution of a judgment that threatened the seizure of its assets.

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