Amanze Chinonye
The United Kingdom Supreme Court has dismissed an appeal by Process & Industrial Developments Limited (P&ID), affirming that Nigeria is entitled to recover its £44.2 million legal costs in pounds sterling rather than naira marking another significant victory for the country in its long-running legal battle with the firm.
In a unanimous decision delivered on Wednesday, October 22, a five-member panel led by Lord Reed, President of the Supreme Court, upheld the findings of both the Commercial Court and the Court of Appeal. The earlier rulings had held that Nigeria’s legal expenses incurred and paid in pounds should be recovered in the same currency.
The Supreme Court ruled that “as Nigeria had incurred liability and made payments in sterling, the court ought to make a costs order in sterling,” dismissing P&ID’s contention that paying in pounds would give Nigeria a “windfall” due to the naira’s depreciation since 2023.
Join our WhatsApp ChannelIn a joint judgment delivered by Lord Hodge and Lady Simler, the court clarified that legal costs are “a statutory indemnity for litigation expenses, not compensation for loss,” warning that P&ID’s interpretation could create “disproportionate and expensive satellite litigation.”
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Nigeria had spent about £44.2 million in legal fees billed and paid in sterling through 116 invoices between November 2019 and November 2024 while challenging two arbitral awards worth more than US$11 billion (including interest). The Commercial Court had earlier ruled in 2023 that the awards were “procured by fraud.”
P&ID had argued that costs should be paid in naira, maintaining that payment in pounds would unduly benefit Nigeria given the severe devaluation of the local currency. The Supreme Court rejected that claim, affirming that costs are to be awarded in the currency in which they were incurred unless exceptional circumstances apply.
The case between Nigeria and P&ID began with a failed 2010 gas processing project agreement between the company and the Ministry of Petroleum Resources. P&ID, founded by two Irish businessmen Michael Quinn and Brendan Cahill claimed that Nigeria breached the contract by failing to provide land and gas supply pipelines for the construction of a gas processing facility in Calabar, Cross River State.
In 2012, the firm initiated arbitration proceedings in London, and by 2017, the arbitral tribunal had awarded P&ID US$6.6 billion plus 7 percent interest, a figure that ballooned to more than US$11 billion by 2023 due to accumulated interest.
The award one of the largest in arbitration history posed a serious financial threat to Nigeria’s economy, equivalent to nearly one-third of the nation’s annual budget at the time.
Following extensive investigations and witness testimonies, Nigeria accused P&ID of bribery, fraud, and corruption in securing the gas contract and subsequent arbitration award.
In October 2023, Justice Robin Knowles of the UK Commercial Court agreed with Nigeria’s position, setting aside the arbitral awards after finding that they had been “procured by fraud” and were contrary to public policy. The judgment revealed evidence of bribery of Nigerian officials and deliberate concealment of critical documents during the arbitration process.
P&ID’s subsequent attempts to challenge that ruling including its appeal over the currency of Nigeria’s £44.2 million legal costs were dismissed at every appellate level: the Court of Appeal in July 2024, and now, the UK Supreme Court in October 2025.
The Supreme Court’s latest verdict not only cements Nigeria’s landmark victory over the fraudulent arbitration award but also secures full recovery of its legal costs in sterling protecting the real value of its reimbursement amid the naira’s continued decline.
Reacting to the judgment, Nigeria’s Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, described the decision as “a firm vindication of Nigeria’s stance and a demonstration of the UK judiciary’s commitment to justice and fairness.”
He commended the legal team led by Arnold & Porter LLP for their “exceptional diligence and professionalism throughout the complex litigation,” noting that the verdict “closes a dark chapter in Nigeria’s legal history while restoring public confidence in the rule of law.”
The Ministry of Justice also reaffirmed Nigeria’s resolve to pursue all remaining enforcement measures against entities and individuals implicated in the P&ID scandal, adding that the judgment underscores “the importance of transparency and accountability in public contracting.”
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
