AGF rejoices as FG wins N4bn, €185m arbitration

The Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi, SAN has announced the favourable report of the final arbitral award issued by a Tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court on November 11, 2025.

A statement made available to newsmen in Abuja on Friday, by the media aide to the AGF, Kamarudeen Ogundele said, the Claimant (Fougerolle V Fougerolle) initiated the arbitration vide a Notice of Arbitration dated 12th December, 2022, about 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 (FRN) and a Joint Venture of Fougerolle Nigeria Ltd and Fougourolle SA (a French company), for construction of civil works in the Iron and Steel Complex at Ajaokuta in Kwara (now Kogi) State.

The AGF said, contrary to contract terms and Fougerolle’s undertaking, Fougerolle 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 payment of N3,894,600,000.00 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.

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 AGF said in the statement that, the entire case was eventually dismissed thereby saving the federal government of over N4 billion liabilities.

The case was defended by officers of the Federal Ministry of Justice in furtherance of the AGF’s commitment to boosting the capacity of Ministry officials to defend sensitive litigation and ADR matters in protecting FGN’s interest.

The decision, the statement said, also underscores the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria, while also emphasising government’s policy to promote ADR as a dispute resolution mechanism.