Update: UK Supreme Court Orders P&ID to Pay Nigeria £44m Legal Costs

By Joseph Bienbo, Warri

The UK Supreme Court has ruled in favour of Nigeria in the £44m legal costs dispute with P&ID as the court dismissed an appeal by Process & Industrial Developments Limited (P&ID), affirming that the Federal Republic of Nigeria is entitled to recover its legal costs in sterling (GBP) rather than in naira (NGN) following its successful challenge to a multi-billion-dollar arbitral award.

Delivering the ruling on 22 October 2025, in Michaelmas Term [2025] UKSC 36, a panel led by Lord Reed, President of the Supreme Court, unanimously upheld earlier rulings of the Commercial Court and the Court of Appeal that costs should be paid in the same currency in which Nigeria’s legal obligations were incurred.

The case arose after Nigeria successfully overturned two arbitral awards granted to P&ID—worth over US$11 billion including interest—on grounds of fraud and public policy violations. The Commercial Court, in 2023, found that the awards had been “procured by fraud” and were therefore void.

In pursuing the challenge, Nigeria incurred legal expenses amounting to £44.2 million, billed and paid in sterling through 116 invoices between November 2019 and November 2024. P&ID had argued that the costs order should be made in naira, claiming that paying in pounds would give Nigeria a “windfall” due to the sharp depreciation of the naira since 2023, when it was allowed to float freely.

However, the Supreme Court rejected that argument. In a joint judgment delivered by Lord Hodge and Lady Simler, with the concurrence of Lords Reed, Stephens, and Richards, the Court held that an order for costs “is not intended to compensate for loss” but rather represents a statutory indemnity for expenses incurred in litigation.

“As Nigeria had incurred liability and made payments in sterling, the court ought to make a costs order in sterling,” the Justices ruled.

The judgment effectively reaffirms the principle that costs are to be awarded in the currency in which the legal services were billed and paid, unless there are exceptional or abusive circumstances. In conclusion, the Supreme Court dismissed P&ID’s appeal and ordered the company to pay Nigeria’s costs on the standard basis.