The United Kingdom Supreme Court has delivered a landmark ruling in favour of Nigeria in its £44 million legal costs dispute with Process & Industrial Developments (P&ID), affirming that the funds must be recovered in pounds sterling rather than in naira.
The unanimous judgment, handed down on October 22, 2025, by a panel led by Lord Reed, reinforces earlier decisions by lower courts that Nigeria is entitled to receive the awarded costs in the same currency in which its legal obligations were incurred.
According to the Supreme Court, the principle of currency consistency is crucial in international disputes of this nature, ensuring that a party is not disadvantaged by fluctuations in exchange rates or forced conversions. The decision effectively closes P&ID’s challenge to the mode of payment and affirms the finality of Nigeria’s cost recovery rights in the prolonged legal saga.
This ruling represents yet another significant legal victory for Nigeria in its decade-long battle with P&ID. The dispute stems from a failed 2010 gas processing contract, which led to an arbitration tribunal initially awarding US$11 billion in damages to P&ID. However, in October 2023, the UK High Court overturned that award after finding that the contract and subsequent arbitration were tainted by fraud and corruption.
Nigeria’s legal team, led by the Office of the Attorney-General and the UK law firm Mishcon de Reya, argued successfully that the recovery of costs in pounds sterling was consistent with the currency in which the nation’s legal expenses were paid.
Reacting to the judgment, Nigerian government officials described the outcome as a reaffirmation of the country’s determination to defend its national assets against fraudulent claims and to pursue justice through international legal systems.
Legal analysts have hailed the Supreme Court’s decision as a clear precedent for future cross-border disputes, emphasizing that it upholds fairness in the recovery of legal costs and recognizes the sovereignty of states in international arbitration matters.
The verdict further strengthens Nigeria’s position in the ongoing clean-up of legacy contractual disputes and reinforces its broader campaign to protect public resources from exploitation through fraudulent foreign arbitration claims.
