The United Kingdom’s Supreme Court has rejected an appeal by Process & Industrial Development (P&ID), confirming that Nigeria should receive a £43 million award in British pounds, not Nigerian naira. The decision, made unanimously by a five-judge panel on Wednesday, upholds the currency used by Nigeria to pay its legal team.
The panel, consisting of judges Robert Reed, Dame Simler, David Richards, Ben Stephens, and Patrick Hodge, ruled that the payment should remain in pounds since Nigeria’s lawyers were paid in that currency.
Background of the Case
In 2010, P&ID signed an agreement to construct a gas processing plant in Calabar, Cross River state, Nigeria. The deal fell apart, with P&ID claiming Nigeria failed to meet its obligations. Nigeria, however, argued the contract was fraudulent and designed to deceive the country. P&ID rejected these claims, calling them baseless.
P&ID pursued legal action and won a $6.6 billion arbitral award against Nigeria in 2017, which later grew to $11 billion with interest. In October 2023, a UK commercial court judge, Robin Knowles, overturned the award, ruling that it was obtained through fraud and violated the English Arbitration Act of 1996. Evidence showed P&ID bribed Nigerian officials during the 2010 contract drafting and illegally accessed Nigeria’s confidential legal documents during arbitration.
The court ordered P&ID to pay Nigeria £43 million for legal fees. Dissatisfied, P&ID appealed, arguing the payment should be in naira since Nigeria funded its legal costs by converting naira to pounds. In July 2024, the UK Court of Appeal rejected this argument, noting Nigeria paid its lawyers in pounds, so the award should match.
The Supreme Court’s Ruling
The Supreme Court agreed with the lower courts, stating there was no basis for paying the award in any currency other than pounds, as Nigeria’s legal expenses were incurred in that currency. P&ID claimed Nigeria would gain unfairly due to the naira’s depreciation, arguing that the £43 million paid earlier was worth about 25 billion naira but now equals 95 billion naira. The court dismissed this, noting the naira’s reduced purchasing power since 2019, especially in 2023.
The judges concluded that Nigeria does not gain a windfall from the decision, as the naira’s value has significantly dropped. They dismissed P&ID’s appeal and ordered the company to cover Nigeria’s legal costs.
The full judgment is available on the UK Supreme Court’s website.