BREAKING: UK Supreme Court Rules in Favour of Nigeria in £43m Legal Costs Dispute with P&ID

In a landmark decision, the Supreme Court of the United Kingdom has ruled in favour of the Federal Republic of Nigeria in its protracted legal battle with Process & Industrial Developments Limited (P&ID), dismissing the company’s appeal over the payment of legal costs amounting to £44 million.

The apex court on Thursday upheld the ruling that Nigeria is entitled to recover its legal costs in British pounds sterling (GBP) rather than in Nigerian naira (NGN), following its resounding victory in overturning a fraudulent multi-billion-dollar arbitration award previously granted to P&ID.

The judgment marks another decisive win for Nigeria in the long-running dispute, which had threatened the country’s financial stability after P&ID sought to enforce an arbitral award of over $11 billion over a failed gas processing contract.

In 2023, the High Court in London had found that the gas processing deal was procured through bribery and deception, describing the arbitral award as a product of corruption. The court subsequently set aside the award, citing what it called “the most severe abuse of the arbitral process.”

P&ID later sought to contest Nigeria’s entitlement to legal cost recovery in pounds, arguing that such costs should be converted to naira. However, the Supreme Court dismissed the company’s appeal, affirming that Nigeria had incurred and paid the expenses in the UK’s currency and therefore should be reimbursed accordingly.

The ruling effectively ends yet another chapter in the high-profile international legal saga, underscoring Nigeria’s determination to reclaim its reputation and resources from what officials have described as a “fraudulent enterprise.”

Reacting to the development, Nigeria’s Attorney-General and Minister of Justice, Lateef Fagbemi (SAN), hailed the judgment as a “victory for justice, transparency, and the Nigerian people,” noting that it reinforces confidence in the integrity of the UK’s judicial system.

“This ruling confirms that Nigeria acted rightly and decisively in challenging a scheme that sought to exploit the nation’s resources through fraud and deceit,” Fagbemi said. “The Federal Government remains resolute in defending the interests of our people wherever they are threatened.”

The case has drawn global attention for its implications on arbitration, sovereign immunity, and anti-corruption enforcement in international commerce.

With this latest judgment, Nigeria not only cements its legal triumph over P&ID but also secures substantial reimbursement for the heavy costs incurred in defending the case — a critical symbolic and financial win for the Tinubu administration.