Court dismisses €185m, N3.8bn claim by French firm against FG in Ajaokuta steel dispute

The federal government has secured a major legal victory in an arbitration case after a tribunal dismissed a N3.8 billion and €185 million claim brought against Nigeria by a French firm over the Ajaokuta steel project.

The government announced the victory in a statement on Friday by Kamarudeen Ogundele, special adviser to the president on communication and publicity, office of the attorney-general of the federation and minister of justice.

Ogundele said the final arbitral award was delivered on November 11, 2025, by a panel sitting under the alternative dispute resolution (ADR) centre of the federal high court.

The panel reportedly upheld the federal government’s preliminary objections and ruled that the claims were statute-barred.

“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 statement said.

“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), for 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 N3,846,098,403.00 (Three Billion, Eight Hundred and Forty-Six Million and Ninety-Eight Thousand, Four Hundred and Three Naira) and €185,733,496.00 (One Hundred and Eighty-Five Million, Seven Hundred and Thirty-Three Thousand, Four Hundred and Ninety-Six Euros).

“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.”

Ogundele said 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”.

‘RULING SAVED FG OVER N4 BILLION LIABILITIES’

The special adviser said the tribunal reviewed the matter on its merits and found that Fougerolle could not prove its claims.

He said the company had effectively forfeited any further demands on the federal government since the FGN bond payment had already settled all contractual obligations.

According to Ogundele, the tribunal also 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,” the statement further reads.

“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 officials to defend sensitive litigation and ADR matters in protecting FGN’s interest.”

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