UK Supreme Court rules in favour of Nigeria in £44m legal costs dispute with P&ID

The United Kingdom Supreme Court has dismissed an entreaty by Process & Industrial Developments Limited (P&ID), affirming that the Federal Republic of Nigeria is entitled to retrieve its ineligible costs successful sterling (GBP) alternatively than successful naira (NGN) pursuing its palmy situation to a multi-billion-dollar arbitral award.

Delivering judgement connected 22 October 2025, successful Michaelmas Term [2025] UKSC 36, a sheet led by Lord Reed, President of the Supreme Court, unanimously upheld earlier rulings of the Commercial Court and the Court of Appeal that costs should beryllium paid successful the aforesaid currency successful which Nigeria’s ineligible obligations were incurred.

The lawsuit arose aft Nigeria successfully overturned 2 arbitral awards granted to P&ID—worth implicit US$11 cardinal including interest—on grounds of fraud and nationalist argumentation violations. The Commercial Court, successful 2023, recovered that the awards had been “procured by fraud” and were truthful void.

In pursuing the challenge, Nigeria incurred ineligible expenses amounting to £44.2 million, billed and paid successful sterling done 116 invoices betwixt November 2019 and November 2024. P&ID had argued that the costs bid should beryllium made successful naira, claiming that paying successful pounds would springiness Nigeria a “windfall” owed to the crisp depreciation of the naira since 2023, erstwhile it was allowed to interval freely.

However, the Supreme Court rejected that argument. In a associated judgement delivered by Lord Hodge and Lady Simler, with the concurrence of Lords Reed, Stephens, and Richards, the Court held that an bid for costs “is not intended to compensate for loss” but alternatively represents a statutory indemnity for expenses incurred successful litigation.

“As Nigeria had incurred liability and made payments successful sterling, the tribunal ought to marque a costs bid successful sterling,” the Justices ruled.

The Court further emphasized that costs awards are discretionary and not compensatory successful nature, distinguishing them from damages successful tort oregon declaration cases. It warned that adopting P&ID’s approach—requiring inquiries into however litigants money their ineligible fees—would make “disproportionate and costly outer litigation.”

The judgement efficaciously reaffirms the rule that costs are to beryllium awarded successful the currency successful which the ineligible services were billed and paid, unless determination are exceptional oregon abusive circumstances.

In conclusion, the Supreme Court dismissed P&ID’s entreaty and ordered the institution to wage Nigeria’s costs connected the modular basis.

This ruling marks yet different important ineligible triumph for Nigeria successful the long-running quality with P&ID, pursuing the country’s landmark occurrence successful overturning the fraudulent US$11 cardinal arbitration grant successful 2023.

Read the afloat judgement here

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