FG Celebrates N4b , €185,733,496 In Arbitration Case Victory Against French Firm Over Ajaokuta Complex project
The Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), on Friday announced that the government has won an arbitration case which saw a foreign entity’s N4 billion and €185.7 million claims against Nigeria dismissed.
The office of Nigeria’s Attorney-General of the Federation, which announced the development on Friday, said Fagbemi (SAN), is pleased to report a favourable final arbitral award issued on 11th November 2025 by a Tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court has awarded N4billion , €185,733,496 as final arbitral in a matter initiated by Fougerolle V Fougerolle on 12th December 2022.
The arbitration vide a Notice of Arbitration was 18 years after the subject Contract was terminated by the Claimant on 30th January, 2004.
The case relates to a contract dated 31st March, 1981, between the Federal Republic of Nigeria and a Joint Venture of Fougerolle Nigeria Ltd and Fougourolle SA a French company.
The contract was for the construction of civil works in the Iron and Steel Complex at Ajaokuta in Kwara now Kogi State.
Contrary to contract terms and Fougerolle’s undertaking, Fougerolle moved the Tribunal to compel additional payment of unverified and uncertified sums of N3billon and €185,000
Previously, the Federal Government engaged Price WaterCooperhouse to verify any indebtedness due to Fougerolle after terminating the contract.
This led to payment of N3billion to Fougerolle vide FGN Bonds on 11th September, 2006.
Fougerolle signed an indemnity on 8th September 2006, accepting the above sum as full and final settlement.
However, over 16 years after, Fougerolle brought the instant claim.
The Tribunal upheld the Federal Government’s preliminary objection challenging the competence of Fougerolle’s phantom claims principally on grounds of being statue barred, non-disclosure of reasonable cause of action as FGN bonds coupled with Fougerolle’s indemnity extinguished the debt, and absence of a competent claimant.
The Tribunal considered Fougerolle’s claim on the merit and held that Fougerolle failed to establish its case and had, indeed, waived all its rights to any other claim against the Federal Government because the payment made via FGN Bonds discharged the contractual obligation between the parties.
The Tribunal rejected Fougerolle’s expropriation claim and the claim that it issued the indemnity under duress.
The entire case was eventually dismissed thereby saving FGN of over N4 billion liabilities.
