The Federal Government of Nigeria has secured a significant victory in a landmark arbitration case, with a Tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court issuing a favourable final arbitral award worth N4 billion and €185,733,496. The case, which dates back to a 1981 contract between the Federal Republic of Nigeria and a Joint Venture of Fougerolle Nigeria Ltd and Fougourolle SA, was dismissed by the Tribunal.
Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, expressed his pleasure with the outcome, saying, “This decision underscores the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria, while also emphasizing government’s policy to promote ADR as a dispute resolution mechanism.”
The case relates to a contract for the construction of civil works in the Iron and Steel Complex at Ajaokuta, Kwara (now Kogi) State. Fougerolle had initiated the arbitration, seeking additional payment of unverified and uncertified sums, but the Tribunal upheld the Federal Government’s preliminary objection, dismissing the claim on grounds of being statute-barred and lacking a competent claimant.
According to Kamarudeen Ogundele, Special Assistant to the President (Communication and Publicity), Office of the AGF and Minister of Justice, “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 also rejected Fougerolle’s expropriation claim and the claim that it issued the indemnity under duress. The entire case was eventually dismissed, saving the Federal Government over N4 billion in liabilities.
The case was defended by officers of the Federal Ministry of Justice, furthering the Attorney-General of the Federation’s commitment to boosting the capacity of Ministry officials to defend sensitive litigation and ADR matters in protecting the Federal Government’s interest.