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P&ID Currency Costs: Nigeria Wins UK Supreme Court Battle

The UK Supreme Court has delivered a significant blow to P&ID, rejecting their request to overturn a crucial decision regarding the currency of costs in Nigeria’s set-aside proceedings. This latest development in the protracted legal dispute underscores Nigeria’s continued success in challenging the controversial gas processing contract.

In a decisive move on October 22, 2025, the UK Supreme Court has firmly sided with Nigeria, dismissing P&ID’s attempt to reverse a critical decision concerning the currency of costs in the ongoing set-aside proceedings. This ruling represents another significant victory for Nigeria in its protracted legal battle against the engineering and construction firm, P&ID, over a failed gas processing deal.

Understanding the Legal Stalemate: The Currency of Costs

The heart of this recent Supreme Court decision lies in the complex issue of the currency of costs. When legal proceedings conclude, one party is often ordered to pay the legal costs incurred by the other. The crucial question here was in which currency these costs should be calculated and paid. P&ID had sought to have these costs determined in a currency different from that which the court had initially ordered, aiming to potentially reduce their financial liability.

Nigeria’s Persistent Legal Defence

Nigeria has been steadfast in its efforts to have the arbitration award, which stemmed from the P&ID contract, set aside. The government has consistently argued that the contract was procured through fraud and corruption. Their legal team has pursued various avenues to dismantle the award, and this latest success at the UK Supreme Court is a testament to their strategic and persistent approach.

Key Points of the Supreme Court’s Decision

The UK Supreme Court’s rejection of P&ID’s request means that the original decision regarding the currency of costs order will stand. This is a substantial financial and procedural win for Nigeria. Here’s a breakdown of what this implies:

• Upholding Previous Rulings: The Supreme Court’s decision reinforces the lower court’s findings on the currency of costs, validating Nigeria’s position.
• Financial Implications: P&ID’s potential financial exposure in relation to these specific costs remains as determined by the initial order.
• Precedent Setting: This ruling could set an important precedent for future cases involving international arbitration and the determination of costs in foreign currency.

The Broader Context: The P&ID Saga

The dispute between Nigeria and P&ID dates back to a 2010 agreement for a gas processing project. When the project failed, P&ID initiated arbitration proceedings and was awarded over $6 billion. Nigeria successfully challenged this award in the UK courts, arguing it was obtained through corrupt means.

The set-aside proceedings are a critical part of Nigeria’s ongoing efforts to nullify the arbitration award entirely. The question of the currency of costs order was a significant procedural hurdle that Nigeria has now successfully navigated.

What Happens Next?

While this is a major victory for Nigeria, the P&ID saga is far from over. The implications of this ruling on the overall set-aside proceedings are significant. Nigeria continues its fight to have the massive award permanently invalidated.

The legal battle highlights the complexities of international arbitration and the importance of robust legal challenges against potentially fraudulent contracts. Nigeria’s success in this instance demonstrates a commitment to fiscal responsibility and the rule of law.

Why This Ruling Matters for Nigeria

The financial implications of the P&ID case are enormous. Nigeria has been fighting to avoid paying a sum that could cripple its economy. Each legal victory, such as the recent decision on the currency of costs, strengthens Nigeria’s position and reduces its potential liabilities.

This ruling is not just about a specific cost order; it’s about upholding the integrity of the legal process and protecting national resources. It reinforces Nigeria’s resolve to fight against what it views as an unjust and corruptly obtained claim.

Key Takeaways from the Supreme Court’s Intervention

Here are the essential points to remember regarding the UK Supreme Court’s intervention:

1. The court has definitively ruled on the currency of costs, favouring Nigeria’s stance.
2. This decision bolsters Nigeria’s ongoing efforts to have the P&ID arbitration award set aside.
3. The ruling underscores the UK judiciary’s role in arbitral disputes and the principles of cost recovery.
4. P&ID’s attempt to alter the terms of the costs order has been unsuccessful.

For more information on international arbitration and its challenges, you can refer to resources from the International Court of Arbitration.

Conclusion

The UK Supreme Court’s decision to reject P&ID’s request to reverse the currency of costs order marks another significant milestone in Nigeria’s protracted legal battle. This victory underscores Nigeria’s unwavering commitment to challenging the controversial gas processing contract and protecting its national interests. As the legal proceedings continue, this ruling provides substantial momentum for Nigeria’s ongoing efforts to have the arbitration award permanently nullified.

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