arbitration / adr news
FG of Nigeria Wins N4b, €185,733,496 in Ajaokuta Contract Dispute with French Firm November 22, 2025 By: Eric Ikhilae The Federal Government of Nigeria has won an arbitral award which saved it N4 billion and €185,733,496.00 in a dispute with French firm, Fougourolle SA and its joint venture, Fougerolle Nigeria Ltd. According to a statement issued by the media aide to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), Kamarudeen Ogundele, yesterday, the final arbitral award was issued on November 11, 2025 by a tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court. Ogundele, who said Fagbemi was delighted about the development, said: “The claimant – Fougerolle V Fougerolle – initiated the arbitration vide a notice of arbitration dated 12th December, 2022, about 18 years after the subject contract was terminated by the claimant on 30th January, 2004. “The case relates to a contract dated 31st March, 1981, between the Federal Republic of Nigeria and a joint venture of Fougerolle Nigeria Ltd and Fougourolle SA (a French company), for the construction of civil works in the Iron and Steel Complex at Ajaokuta in Kwara (now Kogi) State. “Contrary to contract terms and Fougerolle’s undertaking, Fougerolle moved the tribunal to compel additional payment of unverified and uncertified sums of N3,846,098,403.00 (Three Billion, Eight Hundred and Forty-Six Million and Ninety-Eight Thousand, Four Hundred and Three Naira) and €185,733,496.00 (One Hundred and Eighty-Five Million, Seven Hundred and Thirty-Three Thousand, Four Hundred and Ninety-Six Euros). “Previously, the Federal Government engaged Messrs Price WaterCooperhouse to verify any indebtedness due to Fougerolle after terminating the contract. “This led to the payment of N3,894,600,000.00 to Fougerolle vide FGN Bonds on 11th September, 2006. Fougerolle signed an indemnity on 8th September 2006, accepting the above sum as full and final settlement. “However, over 16 years after, Fougerolle brought the instant claim. “The tribunal upheld the Federal Government’s preliminary objection challenging the competence of Fougerolle’s phantom claims principally on grounds of being statue barred, non-disclosure of reasonable cause of action as FGN bonds coupled with Fougerolle’s indemnity extinguished the debt, and absence of a competent claimant. “Notwithstanding, the tribunal considered Fougerolle’s claim on the merit and held that Fougerolle failed to establish its case and had, indeed, waived all its rights to any other claim against the Federal Government, because the payment made via FGN Bonds discharged the contractual obligation between the parties. “The tribunal rejected Fougerolle’s expropriation claim and the claim that it issued the indemnity under duress. “The entire case was eventually dismissed thereby saving FGN of over N4 billion liabilities. “The case was defended by officers of the Federal Ministry of Justice in furtherance of the Attorney-General of the Federation’s commitment to boosting the capacity of ministry officials to defend sensitive litigation and ADR matters in protecting FGN’s interest. “This decision also underscores the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria, while also emphasising government’s policy to promote ADR as a dispute resolution mechanism.” Source: The Nation |
