The contract, which was a Joint Venture of Fougerolle
Nigeria Ltd and Fougourolle SA (a French company), was awarded while Kogi was
still in Kwara State.

The Attorney General of the Federation and Minister of
Justice, Lateef Fagbemi, SAN, in a statement on Friday, said the country
secured a favourable final arbitral award on November 11 from a tribunal
constituted under the auspices of the Alternative Dispute Resolution Centre of
the Federal High Court.

He disclosed that the Claimant (Fougerolle V Fougerolle)
initiated the arbitration vide a Notice of Arbitration dated December 12, 2022,
about 18 years after the subject contract was terminated by the claimant on
30th January, 2004.

In a statement that was signed by his media aide, Kamarudeen
Ogundele, the AGF added that the company sought to compel Nigeria to collect
the sums of N4billion and €185million from Nigeria, through the tribunal.

He 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 (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.

“The Tribunal upheld the Federal Government’s preliminary
objection challenging the competence of Fougerolle’s phantom claims principally
on grounds of being statute-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 entire case was eventually dismissed thereby saving FGN
of over N4 billion liabilities. 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.

“This decision also underscores the current administration’s
determination to challenge all predatory and opportunistic claims against
Nigeria, while also emphasizing government’s policy to promote ADR as a dispute
resolution mechanism,” the statement further read.