FG Secures Victory As Tribunal Dismisses €185m, N3.8bn Fougerolle Claims

The Federal Government has secured a major victory in an arbitration case after a Tribunal under the Alternative Dispute Resolution Centre of the Federal High Court dismissed claims exceeding N4 billion brought against Nigeria by Fougerolle V Fougerolle.

Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi (SAN), announced the development in Abuja following the Tribunal’s final award delivered on November 11, 2025.

Fougerolle had initiated the arbitration in December 2022—about 18 years after it terminated its contract with the government in January 2004—seeking additional payments of N3.85 billion and €185.7 million for civil works earlier carried out at the Ajaokuta Iron and Steel Complex in Kogi State.

The disputed contract, signed in 1981, involved a joint venture between Fougerolle Nigeria Limited and Fougerolle SA of France.

According to the AGF’s office, the Federal Government had already settled the contractor in September 2006, paying N3.89 billion through FGN Bonds after Messrs PriceWaterhouseCoopers verified its claims. Fougerolle also signed an indemnity accepting the payment as full and final settlement.

Despite this, the company returned 16 years later with fresh demands.

In its ruling, the Tribunal upheld the Federal Government’s preliminary objections, holding that Fougerolle’s claims were statute-barred, lacked a reasonable cause of action and had been extinguished by the 2006 settlement and indemnity. It also ruled that the claimant lacked the competence to institute the action.

Even after reviewing the matter on its merits, the Tribunal found that Fougerolle failed to prove its case, had waived any further rights to compensation, and was not coerced into signing the indemnity.

The Tribunal subsequently dismissed the entire claim, sparing Nigeria a potential liability of more than N4 billion.

Officials of the Federal Ministry of Justice handled the defence, which the AGF said reflects the ministry’s strengthening capacity to manage sensitive litigations and arbitration on behalf of the government.

He added that the decision demonstrates the administration’s resolve to challenge “predatory and opportunistic” claims while promoting arbitration and other forms of Alternative Dispute Resolution.

The statement was issued by Kamarudeen Ogundele, Senior Assistant to the President on Communication and Publicity in the Office of the Attorney-General of the Federation.