Gbenga Ilemobayo
The Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), announced a favourable final arbitral award issued on November 11, 2025 by a tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court.
The claimant, Fougerolle V Fougerolle, initiated the arbitration vide a notice of arbitration dated December 12, 2022, about 18 years after the subject contract was terminated by the claimant on January 30, 2004.
The case relates to a contract dated March 31, 1981, between the Federal Republic of Nigeria and a Joint Venture of Fougerolle Nigeria Limited and Fougourolle SA (a French company) 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, the company moved the tribunal to compel additional payment of unverified and uncertified sums of N3,846,098,403.00 and €185,733,496.00 (.
Previously, the Federal Government engaged Messrs Price WaterCooperhouse to verify any indebtedness due to Fougerolle after terminating the contract. This led to the payment of N3,894,600,000.00 to Fougerolle vide FGN Bonds on September 11, 2006. Fougerolle signed an indemnity on September 8, 2006, accepting the above sum as full and final settlement. However, over 16 years after, it brought the instant claim.
Fagbemi said in a statementon Friday by the Special Assistant to the President on Communication and Publicity, Office of the AGF and Minister of Justice, Kamarudeen Ogundele, “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 the absence of a competent claimant.
“Notwithstanding, 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 N4bn liabilities. The case was defended by officers of the Federal Ministry of Justice in furtherance of the Attorney-General of the Federation’s commitment to boosting the capacity of ministry’s officials to defend sensitive litigation and ADR matters in protecting the FGN’s interest.”
He added that the decision also underscored the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria, while also emphasizing government’s policy to promote ADR as a dispute resolution mechanism.
