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CBN Ordered to Pay Interstella Communications $ 117.4 Million

By on June 18, 2012

A federal high court sitting in Umuaia has ordered the Central Bank of Nigeria to pay Interstella Communications Ltd $117.4 million. The high court ordered the CBN to debit the accounts of the Federal Government  in order to pay the same to Interstella Communications.

Interstella Communications, a Nigerian internet gateway operator, had instituted a legal action against NITEL since June 2007 in order to seek legal redress for a breach of contract.

The company won a judgement against NITEL five years ago when Justice H.T. Soba ordered NITEL to pay the sum of N1, 944 billion per annum accruable to the plaintiffs per annum as revenue from their investment on 36 E1 switch port beginning from 2002.

Nitel was also ordered to pay the cost of medical treatment of the 2nd plaintiff/ Chief Executive Officer amounting to the sum of 150,000 Dollars.

The court also directed Nitel to pay 30% interest until date of judgement and thereafter at 25 per cent until date the liquidation of judgement debt hereby granted.

NITEL appealed the ruling, however the recent order given by Justice M.G Umar of the Federal High Court sitting in Umuahia may see Interstella Communications receive the controversial judgement debt.