The United Kingdom Supreme Court has dismissed an appeal by Process & Industrial Developments Limited, affirming that Nigeria is entitled to recover its legal costs in sterling rather than naira following its successful challenge to a multi-billion-dollar arbitral award.
Delivering judgment on October 22, 2025, 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 $11 billion including interest – on grounds of fraud and public policy violations.
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.
However, the Supreme Court rejected that argument. In a joint judgment delivered by Lord Hodge and Lady Simler, 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 Court further emphasized that costs awards are discretionary and not compensatory in nature, distinguishing them from damages in tort or contract cases.
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.
The Supreme Court dismissed P&ID’s appeal and ordered the company to pay Nigeria’s costs on the standard basis, marking another significant legal victory for Nigeria in the long-running dispute with P&ID.
