British Court Ruling: No Need To Panic, Emefiele Tells Investors

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said there is no cause for alarm over the British court ruling that ordered the Process and Industrial Development Limited (P&ID) to seize Nigerian assets worth $9 billion.

The CBN boss experienced his confidence on Monday while responding to questions from journalist before the commencement of the presidential retreat for ministers-designate at the State House Conference Centre.

“I am not scared at all and I think it is also important that this question has come up,” he responded when asked if he was scared of the impact of the judgement of the nation’s foreign reserves.

“It is important for me to use this opportunity to assure our friends, local and foreign investors who called to express solidarity with us, not to express concern but to say that there is no need for anybody to worry.”

Since the news of the court orders went public on Friday, Emefiele said discussions with the counsels of the financial institutions have shown that there are certain anomalies in the process leading to the award of the contract.

Based on the contract agreement, Nigeria was to supply P&ID with agreed-upon quantities of wet gas, this, however, required Nigeria to construct a pipeline to carry the gas to P&ID facility.

The project, however, collapsed two years later because of the failure of the Nigerian government to secure a supply of wet gas or to build the pipeline to bring gas to the processing plant, forcing the company to declare a dispute, which the court ruled in their favour.

According to the CBN boss, the Economic and Financial Crimes Commission (EFCC), is investigating the approval of the gas processing deal.

“Our counsels, have advised that there are sufficient and strong grounds on the basis of which we could file a stay of execution and also an appeal against that judgement.

“So, we will follow through and aggressively too on ensuring that the execution of that judgement is stayed and that the appeal succeeds at every level both within Nigeria and abroad.”

Emefiele, however, assured that the CBN is determined to defend the country’s reserves noting that the judgement would have some impact on monetary policy.