Lateef Fagbemi, (SAN), the Attorney-General of the Federation and Minister of Justice
The Federal Government of Nigeria has emerged victorious in a long-standing dispute concerning a 1981 contract for civil works at the Ajaokuta Iron and Steel Complex.
The contract, awarded to a joint venture between Fougerolle Nigeria Ltd and the French company Fougourolle SA, predates the creation of Kogi State, at a time when the area was still part of Kwara State.
Lateef Fagbemi, Attorney General and Minister of Justice, announced on Friday that the Federal Government secured a favorable final award on November 11 from a tribunal organised under the Alternative Dispute Resolution Centre of the Federal High Court.
Fagbemi explained that the claimant, Fougerolle, initiated arbitration on December 12, 2022—nearly 18 years after it had terminated the contract on January 30, 2004. Through the tribunal, the company sought to compel Nigeria to pay N4 billion and €185 million.
“Contrary to the contract terms and its prior undertakings, Fougerolle petitioned the tribunal to order additional payments of unverified and uncertified amounts totaling N3,846,098,403.00 (Three Billion, Eight Hundred Forty-Six Million, Ninety-Eight Thousand, Four Hundred and Three Naira) and €185,733,496.00 (One Hundred Eighty-Five Million, Seven Hundred Thirty-Three Thousand, Four Hundred Ninety-Six Euros),” Fagbemi stated.
Previously, the Federal Government had engaged PricewaterhouseCoopers to verify any outstanding obligations to Fougerolle following the contract termination.
This verification led to the payment of N3,894,600,000.00 to the company through FGN Bonds on September 11, 2006. Fougerolle also signed an indemnity on September 8, 2006, acknowledging that this payment represented full and final settlement.
Despite this, the company revived its claim more than 16 years later.
The tribunal upheld the Federal Government’s preliminary objection, citing that Fougerolle’s claim was statute-barred, lacked disclosure of a valid cause of action, and that the indemnity and FGN bond payment extinguished any further debt.
Moreover, the tribunal found that the claimant lacked proper standing.
Even after considering the claim on its merits, the tribunal concluded that Fougerolle had failed to substantiate its allegations and had waived any further claims against the government, as the FGN bond payment had fulfilled the contractual obligations.
The tribunal also rejected claims of expropriation and assertions that the indemnity had been signed under duress.
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Ultimately, the entire claim was dismissed, saving the Federal Government over N4 billion.
The case was successfully defended by officers of the Federal Ministry of Justice, reflecting the Attorney General’s commitment to strengthening the Ministry’s capacity to manage sensitive litigation and arbitration matters in defense of national interests.
“This outcome demonstrates the current administration’s resolve to resist predatory and opportunistic claims against Nigeria while reinforcing the government’s commitment to promoting alternative dispute resolution as a mechanism for resolving disputes,” the statement said.
