Federal Government Secures Major Legal Victory in Arbitration

The Federal Government of Nigeria achieved a significant legal triumph on November 11, 2025, when a Tribunal dismissed claims exceeding N4 billion and €185.7 million from the company Fougerolle V Fougerolle. This ruling was characterized by Prince Lateef Fagbemi (SAN), the Attorney-General of the Federation and Minister of Justice, as a favourable outcome for the government. The Tribunal’s decision marks a critical juncture in a dispute that has spanned nearly two decades.

The claims originated from a Notice of Arbitration filed on December 12, 2022, by Fougerolle, which sought additional payments related to a civil works contract terminated in 1981 for the Ajaokuta Iron and Steel Complex located in Kogi State. The contract, established on March 31, 1981, was originally between Nigeria and a joint venture of Fougerolle Nigeria Ltd and Fougerolle SA for construction services at the complex. Despite an earlier settlement in 2006, the company returned with new claims, asserting unverified payments totaling N3,846,098,403.00 and €185,733,496.00.

In preparation for the arbitration, the Federal Government engaged Messrs Price Waterhouse Coopers to assess any outstanding obligations following the contract’s termination. This led to a payment of N3,894,600,000.00 to Fougerolle via Federal Government Bonds on September 11, 2006. The firm acknowledged this payment by signing an indemnity on September 8, 2006, which recognized it as a “full and final settlement” of all claims.

The Tribunal upheld the Federal Government’s preliminary objection, determining that Fougerolle’s claims were “statute barred” and lacked a reasonable cause of action. Furthermore, it stated that the claims had been extinguished by the previous settlement and indemnity. The Tribunal concluded that Fougerolle had “failed to establish its case” and had “waived all rights to any other claim” against the Federal Government.

The dismissal of these claims not only shields Nigeria from liabilities exceeding N4 billion but also demonstrates the Federal Ministry of Justice’s commitment to enhancing its internal legal capacity. The case was defended entirely by ministry officials, reflecting the government’s resolve to counteract what it describes as predatory and opportunistic claims.

In a press release, the government emphasized its support for Alternative Dispute Resolution mechanisms, highlighting this victory as part of the administration’s broader strategy to protect national interests. The statement, signed by Kamarudeen Ogundele, Special Assistant to the President (Communication and Publicity), was dated November 21, 2025.

This legal victory underscores a proactive stance by the Federal Government in managing complex legal disputes, illustrating its determination to uphold contracts and settlements while also ensuring fiscal responsibility.