currency

UK Supreme Court Rejects P&ID’s Currency Cost Order Bid

In a significant development for the long-running legal saga between Process and Industrial Developments Limited (P&ID) and the Federal Republic of Nigeria, the UK Supreme Court has decisively rejected P&ID’s plea to reverse a previous decision concerning the currency of a costs order. This ruling, handed down on October 25, 2025, marks another setback for P&ID and a victory for Nigeria in the protracted set-aside proceedings.

Understanding the Core of the Dispute: The Currency of Costs

At the heart of this latest Supreme Court judgment lies a crucial procedural point: the currency in which a costs order should be made. Following the initial set-aside of the arbitration award, Nigeria sought to recover its legal expenses. The disagreement then centered on whether these costs should be quantified in British Pounds Sterling (£) or Nigerian Naira (₦).

P&ID’s Argument and the Court’s Consideration

P&ID had contended for a specific currency, likely aiming to maximize their recovery or simplify their financial arrangements. However, the UK Supreme Court reviewed the arguments and the existing legal framework. Their decision underscores the principle that procedural costs orders in English courts are typically made in Sterling, reflecting the jurisdiction of the court itself.

Nigeria’s Position and the Legal Precedent

Nigeria, on the other hand, argued for the standard practice of costs being awarded in the currency of the forum. This aligns with established legal norms in the UK. The Supreme Court’s affirmation of this principle reinforces the procedural consistency expected in the English legal system, regardless of the underlying dispute’s international nature.

Implications of the Supreme Court’s Decision

This ruling has several key implications:

• Procedural Clarity: It provides much-needed clarity on how costs will be handled in the ongoing litigation.
• Financial Impact: For P&ID, it means their potential recovery of costs will be calculated based on Sterling, which could differ significantly from Naira-based calculations depending on exchange rates and the timing of the order.
• Nigeria’s Advantage: For Nigeria, it solidifies their procedural stance and potentially simplifies the financial aspect of recovering their legal expenditure.

The Broader Context: P&ID vs. Nigeria Set-Aside Proceedings

This decision on the currency of costs is just one facet of the complex P&ID vs. Nigeria dispute. The underlying arbitration award, reportedly for billions of dollars, was granted to P&ID following a failed gas processing project. However, Nigeria has been vigorously challenging the validity of this award, alleging widespread corruption and fraud in its procurement.

Key Stages in the Set-Aside Proceedings

The journey through the UK courts has been extensive:

1. Initial arbitration award in favor of P&ID.
2. Nigeria’s application to set aside the award based on allegations of fraud.
3. High Court’s decision to set aside the award, deeming it procured by fraud.
4. Court of Appeal’s subsequent upholding of the High Court’s decision.
5. P&ID’s attempt to appeal to the Supreme Court on various grounds, including the costs order.

The Significance of the Currency Ruling

While the Supreme Court’s refusal to alter the currency of the costs order might seem like a technical point, it reflects the court’s adherence to established procedural rules. It signals that the court is focused on the proper application of legal principles, even within a case of such magnitude and international importance.

Looking Ahead: What’s Next for P&ID and Nigeria?

With the UK Supreme Court having dealt with this specific procedural appeal, the focus will likely shift back to the substantive challenges and ongoing legal maneuvers in the P&ID vs. Nigeria saga. Nigeria continues its efforts to have the entire arbitration award definitively invalidated, while P&ID seeks to revive it. The final resolution remains uncertain, but this latest judgment reinforces Nigeria’s position in the procedural aspects of the case.

For those following international arbitration and commercial litigation, this case offers a deep dive into the complexities of challenging large-scale awards and the procedural nuances that can significantly impact outcomes. The decision on the currency of costs, while specific, is indicative of the rigorous application of legal standards by the UK’s highest court.

For more on international arbitration, you can refer to resources from the Purdue University’s International Arbitration page, which offers comprehensive insights into the field.

Additionally, understanding the role of the UK Supreme Court itself provides valuable context to such rulings.

The UK Supreme Court’s firm stance on the currency of costs in the P&ID case demonstrates a commitment to procedural regularity. While P&ID faced another hurdle, the broader legal battle continues, with Nigeria maintaining its efforts to overturn the substantial arbitration award.

The UK Supreme Court has shut down P&ID’s request to change the currency of a costs order in its ongoing dispute with Nigeria, signaling a procedural win for Nigeria and reinforcing standard legal practices.

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