The Federal Government has secured a major victory in an arbitration dispute over a 1981 contract for civil works at the Ajaokuta Iron and Steel Complex.
The project, handled by a joint venture between Fougerolle Nigeria Ltd and Fougerolle SA of France, was awarded at a time when the present-day Kogi State was still part of Kwara State.
In a statement issued on Friday, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, announced that Nigeria obtained a favourable final arbitral award on November 11.
The Truth in a report, stated that the ruling came from a tribunal operating under the Alternative Dispute Resolution Centre of the Federal High Court.
Fagbemi revealed that the claimant initiated the arbitration on December 12, 2022—almost 18 years after it terminated the contract on January 30, 2004. According to the AGF, Fougerolle sought to compel Nigeria to pay an additional N4 billion and €185 million.
His media aide, Kamarudeen Ogundele, stated that the company attempted to persuade the tribunal to order extra payments of N3.85 billion and €185.7 million, amounts which were neither verified nor certified.
He noted that the Federal Government had earlier engaged PricewaterhouseCoopers to verify any outstanding liabilities after the contract termination. Following that review, the government paid N3.89 billion to Fougerolle through FGN Bonds on September 11, 2006. Fougerolle also signed an indemnity on September 8, 2006, accepting the payment as full and final settlement.
Yet, more than 16 years later, the company revived its claim.
The tribunal upheld the Federal Government’s preliminary objection, ruling that the claims were statute-barred, lacked reasonable cause of action, and were extinguished by the earlier settlement and indemnity. It also found that the claimant lacked the competence to reopen the matter.
Even after reviewing the case on its merits, the tribunal held that Fougerolle failed to prove its claims and had already waived any further rights through the 2006 settlement. It dismissed allegations of expropriation and rejected the company’s claim that its indemnity was signed under duress.
The dismissal effectively saved the Federal Government from over N4 billion in liabilities.
Fagbemi emphasized that the case was defended by officers of the Federal Ministry of Justice as part of efforts to strengthen in-house capacity for handling complex litigation and arbitration.
He added that the decision reflects the current administration’s resolve to resist predatory claims against Nigeria and reinforces its commitment to promoting alternative dispute resolution mechanisms.
