The Supreme Court of the United Kingdom has dismissed an appeal filed by Process & Industrial Developments Limited (P&ID), affirming earlier rulings that ordered the company to pay Nigeria’s legal costs in pounds sterling rather than in naira.

In the judgment delivered on Tuesday, October 22, 2025, and published on the court’s website (Case ID: UKSC/2024/0117), the apex court upheld the decisions of the Commercial Court and the Court of Appeal, which had exercised their discretion to award costs in the currency in which Nigeria incurred and paid its legal fees.

The ruling, delivered by Lord Hodge and Lady Simler, with Lord Reed, Lord Stephens, and Lord Richards concurring,  brings another decisive victory for Nigeria in the long-running legal battle with P&ID over a botched gas processing contract.

The dispute originated from Nigeria’s successful bid to overturn two arbitration awards previously granted in P&ID’s favour, totalling over $11 billion. During the eight-week trial before Justice Robin Knowles, Nigeria spent approximately £44.2 million on legal representation, all paid in sterling.

P&ID had argued that, due to the sharp depreciation of the naira since 2023, paying costs in sterling would grant Nigeria a “substantial windfall,” noting that the same sum once equalled about ₦25 billion but now amounts to roughly ₦95 billion.

Rejecting the claim, the Supreme Court held that costs are not intended as compensation for financial loss but as a discretionary contribution toward a party’s legal expenses.

“An order for costs is not intended to provide compensation for loss,” the court ruled. “Nobody has an entitlement to an award of costs as of right.”

The justices also cautioned against what they described as “disproportionate and expensive satellite litigation” that could arise if courts began investigating the currency sources of litigants’ legal funding.

Reaffirming the lower courts’ reasoning, the panel stated:

“There is no reason to award costs in this case other than in sterling. English solicitors and counsel have conducted the litigation in London, billed in sterling, and Nigeria has paid those bills in sterling.”

In conclusion, the Supreme Court found no legal error in Justice Knowles’ decision and confirmed that Nigeria’s £44.2 million costs award in sterling stands.

“Nigeria does not enjoy a large windfall from this decision,” the court added, observing that the naira’s depreciation had already weakened the country’s domestic purchasing power.

P&ID was ordered to pay Nigeria’s costs on the standard basis.