In a landmark decision, the United Kingdom Supreme Court has dismissed an appeal by Process & Industrial Developments Limited (P&ID) against the Federal Republic of Nigeria. The court’s ruling affirms that Nigeria is entitled to recover its legal costs in pounds sterling (GBP), a victory for the Nigerian government in its long-standing dispute with the British Virgin Islands-based company.
The dispute between Nigeria and P&ID dates back to 2010, when the two parties signed a 20-year Gas Supply and Processing Agreement (GSPA). The agreement tasked P&ID with constructing and operating a gas processing plant, with Nigeria responsible for supplying the gas. However, the agreement failed to materialize, and P&ID initiated arbitration proceedings in London, claiming breach of contract by Nigeria.
The UK Supreme Court’s decision on October 22, 2025, upholds a previous ruling by the Court of Appeal, which dismissed P&ID’s appeal against the costs order made by Mr. Justice Robin Knowles CBE. The court ruled that Nigeria’s liability to its lawyers was properly invoiced and paid in pounds sterling, and therefore, it was proper for the costs to be awarded in the same currency.
The ruling is significant, as it potentially saves Nigeria from a substantial financial burden. The original arbitration award had been valued at over $11 billion, including interest. Nigeria had argued that paying the award in dollars would be unfair, given the depreciation of the naira.
The decision is seen as a major victory for Nigeria, and it remains to be seen how this ruling will impact future arbitration cases involving state contracts.
Stay informed about the latest developments affecting Nigerians in the diaspora!
Follow us for more updates:
facebook.com/TheNidm
www.thenidm.com
#NigeriaVSPID #UKSupremeCourt #Arbitration #ContractLaw
