The Federal Government has secured a major legal victory after a Tribunal of the Alternative Dispute Resolution Centre of the Federal High Court dismissed claims amounting to more than N4 billion and €185.7 million, a development the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), described as a favourable outcome.
The final arbitral award, issued on 11 November 2025, followed a Notice of Arbitration filed on 12 December 2022 by Fougerolle V Fougerolle, nearly 18 years after the claimant terminated a 1981 civil works contract for the Ajaokuta Iron and Steel Complex in what is now Kogi State. Fougerolle sought additional payments despite an earlier bond settlement concluded in 2006.
The press release stated that the original contract, dated 31 March 1981, was between Nigeria and a joint venture of Fougerolle Nigeria Ltd and Fougerolle SA for construction works at the Ajaokuta Iron and Steel Complex. Fougerolle’s new claim asked the Tribunal to compel payment of “unverified and uncertified sums of N3,846,098,403.00” and “€185,733,496.00.”
Before the dispute resurfaced, the Federal Government had engaged Messrs Price WaterCooperhouse to verify any outstanding obligations after the contract was terminated. This process led to the payment of N3,894,600,000.00 to Fougerolle via FGN Bonds on 11 September 2006, which the firm acknowledged by signing an indemnity on 8 September 2006 accepting the payment as “full and final settlement.” Despite this, the company returned with fresh claims more than 16 years later.
The Tribunal upheld the Federal Government’s preliminary objection, describing the claims as “statute barred,” lacking “reasonable cause of action,” and extinguished by the earlier settlement and indemnity. It also ruled that there was an “absence of a competent claimant.”
After considering the matter on its merits, the Tribunal found that Fougerolle “failed to establish its case” and had “waived all its rights to any other claim against the Federal Government.” It also rejected allegations of expropriation and the assertion that the indemnity was signed under duress.
The dismissal of the case, according to the statement, saved Nigeria from liabilities exceeding N4 billion, with the matter defended entirely by officers of the Federal Ministry of Justice in line with the Attorney-General’s commitment to strengthening internal legal capacity.
The release added that the decision “underscores the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria,” and reaffirms government support for Alternative Dispute Resolution mechanisms.
The statement was signed by Kamarudeen Ogundele, S.A. to the President (Communication and Publicity), Office of the AGF and Minister of Justice, and dated November 21, 2025.
Ademide Adebayo
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