FG wins N4bn, €185m arbitral dispute with French firm over Ajaokuta contract

The Federal Government has successfully defended itself in an arbitral dispute with French company Fougourolle SA and its joint venture, Fougerolle Nigeria Ltd, saving over N4 billion and €185,733,496 in claimed sums.

A statement from Kamarudeen Ogundele, media aide to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), confirmed that the final arbitral award was issued on November 11, 2025, under the Alternative Dispute Resolution Centre of the Federal High Court.

The dispute arose from a contract signed on March 31, 1981, for the construction of civil works at the Ajaokuta Iron and Steel Complex in present-day Kogi State.

The contract had been terminated by Fougerolle on January 30, 2004, and the company later sought additional payments of N3.85 billion and €185.7 million, claiming they were owed further sums.

However, the Federal Government had previously engaged PricewaterhouseCoopers to verify outstanding claims and issued N3.89 billion via FGN bonds in 2006, which Fougerolle accepted as full and final settlement through an indemnity.

The tribunal upheld the government’s objections, ruling that Fougerolle’s claims were statute-barred, lacked merit, and had been extinguished by the previous payment and indemnity.

It also rejected allegations of expropriation and claims that the indemnity was signed under duress.

The dismissal of the case prevented the company from obtaining additional payments, effectively saving the government over N4 billion.

The Federal Ministry of Justice defended the case, reflecting the administration’s commitment to strengthening ministry capacity in handling sensitive litigation and promoting Alternative Dispute Resolution (ADR) mechanisms.

The decision highlights the government’s resolve to challenge opportunistic claims against Nigeria while protecting national financial interests.