The United Kingdom Supreme Court has dismissed an appeal by Process & Industrial Developments Limited (P&ID), upholding earlier rulings that ordered the company to pay Nigeria’s legal costs in pounds sterling (GBP) rather than in naira.
In a judgment published on the Supreme Court’s website under Case ID: UKSC/2024/0117, titled Process & Industrial Developments Limited (Appellant) v The Federal Republic of Nigeria (Respondent), the court affirmed that both the Commercial Court and the Court of Appeal had correctly exercised their discretion to award costs in the currency in which Nigeria incurred and paid its legal expenses.
Delivering the unanimous judgment on Tuesday, 22 October 2025, Lord Hodge and Lady Simler, with Lord Reed, Lord Stephens, and Lord Richards concurring, ruled that the lower courts were right to order payment in sterling, given that Nigeria’s legal fees were incurred and settled in that currency.
The case stemmed from Nigeria’s successful effort to overturn two arbitration awards initially granted in P&ID’s favour, worth over $11 billion. Nigeria reportedly spent about £44.2 million on legal fees during an eight-week trial before Justice Knowles, paying all invoices in sterling.
P&ID had argued that awarding costs in sterling would give Nigeria a “substantial windfall,” citing the sharp depreciation of the naira since 2023. The company noted that the same sum once equalled ₦25 billion but is now around ₦95 billion.
Rejecting the argument, the Supreme Court held that costs are discretionary and not compensatory, unlike damages in contract or tort.
“An order for costs is not intended to provide compensation for loss,” the judgment stated. “Nobody has an entitlement to an award of costs as of right.”
The justices also cautioned against “disproportionate and expensive satellite litigation” that could arise if courts began investigating how litigants funded their cases or in which currency they raised money.
Reaffirming the lower courts’ position, the judgment read:
“There is no reason to award costs in this case other than in sterling. English solicitors and counsel conducted the litigation in London, billed in sterling, and Nigeria paid those bills in sterling.”
In dismissing the appeal, the Supreme Court concluded that Justice Knowles had made no error in law and that Nigeria’s costs order in sterling stands.
“Nigeria does not enjoy a large windfall from this decision,” the court added, noting that the naira’s depreciation had already reduced its domestic purchasing power.
The court ordered P&ID to pay Nigeria’s costs on the standard basis.
Read full judgment here.