P&ID Case: UK Supreme Court Rejects Nigeria’s Costs Order Appeal

P&ID Costs Order: UK Supreme Court Upholds Decision, Nigeria Wins Appeal

In a significant legal development, the UK Supreme Court has decisively rejected an attempt by Process and Industrial Developments Limited (P&ID) to reverse a previous ruling concerning the currency of a costs order. This decision, handed down on October 22, 2025, marks a crucial victory for Nigeria in the protracted legal battle stemming from the defunct gas processing contract.

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

The legal wrangling between Nigeria and P&ID has been ongoing for years, with the latter seeking a substantial sum following the termination of a contract for a gas processing project. While Nigeria successfully challenged the validity of the contract itself, leading to the set-aside of a massive arbitration award, the dispute over associated costs has continued. P&ID’s latest move aimed to overturn a decision that dictated the currency in which Nigeria should be awarded its legal costs.

Understanding the Currency of Costs Order

When legal proceedings conclude, the winning party is often awarded costs, essentially the reimbursement of their legal expenses. The specific currency in which these costs are to be paid can be a point of contention, especially in international disputes involving different economic landscapes. For Nigeria, securing costs in its own currency, the Naira, rather than a foreign currency like the US Dollar or Pound Sterling, has significant implications for the actual amount it would need to pay out.

Nigeria’s Legal Victory in the Supreme Court

The UK Supreme Court’s refusal to entertain P&ID’s request to reverse the decision on the currency of the costs order is a clear endorsement of the lower court’s findings. This means that the original order, likely specifying the currency in Nigeria’s favor, stands. This outcome is a substantial relief for Nigeria, potentially saving it millions in legal expenses by avoiding adverse currency fluctuations.

Implications of the Supreme Court’s Decision

This latest ruling by the UK Supreme Court further solidifies Nigeria’s position in the P&ID saga. It demonstrates the court’s reluctance to allow P&ID to revisit established aspects of the case, particularly those that have already been adjudicated. The implications are far-reaching:

• Reduced Financial Burden: Nigeria is likely to incur significantly lower costs than if the order had been in a foreign currency.
• Case Closure: This decision brings Nigeria closer to a definitive end to the costly legal battle.
• Precedent Setting: The ruling may set a precedent for how currency of costs orders are handled in similar international arbitration disputes involving Nigeria.

The legal team representing Nigeria has consistently argued that the arbitration award was procured through fraud and corruption. The set-aside of the award and now this successful defense against P&ID’s attempt to alter the costs order underscore the strength of Nigeria’s case.

The Road Ahead for Nigeria and P&ID

With the UK Supreme Court’s latest decision, the focus now shifts to the finalization of the costs awarded to Nigeria. While P&ID may explore further avenues, this ruling represents a significant setback for their claims and a major win for Nigeria’s sovereignty and financial interests.

The protracted legal battle has been a drain on resources for both parties. However, Nigeria’s persistent efforts to fight what it deems an unjust claim have been vindicated by the judiciary.

Here’s a summary of the key takeaways:

1. The UK Supreme Court has rejected P&ID’s request to change the currency of the costs order.
2. This decision upholds Nigeria’s earlier victory regarding the currency specification.
3. The ruling is expected to significantly reduce Nigeria’s financial exposure in legal costs.
4. This marks another crucial step in Nigeria’s successful challenge against the P&ID arbitration award.

The ongoing legal battles highlight the complexities of international arbitration and the importance of robust legal defenses. Nigeria’s sustained efforts have proven effective in safeguarding its national interests.

The UK Supreme Court has rejected P&ID’s bid to reverse a decision on the currency of costs awarded to Nigeria, marking a significant victory for the African nation in the ongoing legal dispute.