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UK Supreme Court Rejects P&ID’s Currency Costs Order in Nigeria Case

In a significant development for international arbitration and the ongoing legal battle between Nigeria and Process and Industrial Developments Limited (P&ID), the UK Supreme Court has delivered a pivotal ruling. The court has rejected P&ID’s attempt to overturn a previous decision concerning the currency of a costs order. This decision, dated October 22, 2025, marks another chapter in the complex set-aside proceedings initiated by Nigeria.

Understanding the Core Issue: Currency of Costs

At the heart of this latest legal skirmish was the specific currency in which costs awarded in the arbitration proceedings should be paid. Nigeria, having successfully sought to set aside the massive arbitration award, also sought to recover its legal expenses. The dispute arose over whether these costs should be denominated in pounds sterling (GBP) or US dollars (USD), a detail that carries significant financial implications.

The P&ID Arbitration Saga Continues

The P&ID case has been a protracted and high-profile international arbitration. Following a disputed contract for a gas processing project, P&ID was awarded over $6 billion, a sum that ballooned with accrued interest to over $10 billion. Nigeria contested the award, alleging fraud and corruption, and sought to have it set aside. The UK Supreme Court’s previous rulings have been critical in Nigeria’s efforts to quash the award.

Nigeria’s Legal Strategy and Successes

Nigeria’s legal team has been meticulously dismantling the arbitration award on various grounds. The focus on the currency of the costs order is a tactical move aimed at limiting the financial exposure and recovery for P&ID. This latest rejection by the Supreme Court underscores the success of Nigeria’s strategy in challenging the award and its associated financial claims.

Implications of the Supreme Court’s Decision

The UK Supreme Court’s refusal to reverse the decision on the currency of the costs order has several important implications:

• Financial Certainty for Nigeria: By affirming the original decision, the court provides greater clarity and potential financial certainty for Nigeria regarding the amount it may recover in costs.
• Reinforcement of Set-Aside Proceedings: This ruling further strengthens Nigeria’s position in its ongoing efforts to have the entire arbitration award invalidated.
• Precedent for Future Cases: The decision may offer guidance on similar disputes involving the currency of costs in international arbitration, particularly within the UK jurisdiction.

Key Takeaways for International Arbitration

This case serves as a stark reminder of the complexities inherent in large-scale international arbitrations. The battle over procedural elements, such as the currency of costs, can be as significant as the substantive dispute itself. Here are some crucial takeaways:

1. Importance of Detail: Parties must pay meticulous attention to all procedural aspects of arbitration, including the precise wording and implications of costs orders.
2. Jurisdictional Nuances: The governing law and jurisdiction of the seat of arbitration play a crucial role in how such disputes are resolved. The UK courts have demonstrated a willingness to scrutinize awards and associated costs.
3. Strategic Litigation: The P&ID case highlights the importance of a well-coordinated and strategic legal approach, where seemingly minor points can have major consequences.

What Happens Next?

While this ruling addresses the specific issue of the currency of costs, the broader P&ID arbitration saga is likely to continue. Nigeria will undoubtedly leverage this success as it pursues further legal avenues to finally put an end to the claims made by P&ID. The international arbitration community will be closely watching as this landmark case unfolds further.

The UK Supreme Court’s firm stance on the currency of the costs order in the P&ID proceedings is a significant win for Nigeria, reinforcing its position and bringing it closer to final resolution in this protracted legal battle.

The UK Supreme Court has rejected P&ID’s attempt to alter the currency of a costs order, a key development in Nigeria’s ongoing set-aside proceedings. Discover the implications of this ruling.

UK Supreme Court building with Nigerian and P&ID flags

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