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Court of Appeal Criticises ‘Staggering’ £44m Costs in Nigeria Arbitration Row

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By John Hyde

The Court of Appeal has urged parties in a showdown over a ‘stagggering’ multi-million-pound costs bill to take a ‘realistic’ approach to resolution.

Ruling in The Federal Republic of Nigeria v VR Global Partners LP & Ors both Lord Justice Males and Lady Justice Andrews were highly critical of the ‘eye-watering’ £44m – plus interest – being claimed. The costs proceedings followed what the judgment described as ‘heavy and high profile litigation’ arising out of the setting aside of two arbitration awards totalling $11.1bn between the government of Nigeria and oil company Process & Industrial Developments Ltd (P&ID). P&ID was ordered to pay an interim £20m on account of costs.

Nigeria has commenced proceedings for the assessments of its costs and applied for a third party costs order against funder VR Global Partners, after P&ID directors admitted that no arrangement was in place to meet any adverse costs order. This application was stayed by Mr Justice Robin Knowles pending the conclusion of the detailed assessment; that decision was upheld by the Court of Appeal.

Lord Justice Males said the final cost claim, which could reach £50m with interest, was a ‘staggering amount’ even for a case of this magnitude. The bill contains more than 95,000 individual items. These figures do not include the costs of the assessment itself, which Nigeria says are likely to run into millions of pounds.

The fee charged by Nigeria’s leading counsel for one application was, the judge said, ‘extraordinarily high’; the hourly rates charged by its solicitors were well over the guideline rates, and the bill includes £5.25m incurred in litigation overseas and for public relations, for which recoverability was ‘at least open to question’.

Males said he was ‘dismayed’ to be told that the assessment process will take at least 50 days of court time: twice as long as the trial of the substantive challenge to the award. He added: ‘Even if this is time and expense which these well-resourced parties are willing to devote to the exercise, it seems to me that it would be the worst kind of satellite litigation, which will prejudice the many other court users who need to have their costs assessed with reasonable promptness, and that it should not be countenanced.’

The costs judge dealing with the assessment should adopt a ‘firm approach’, limiting the parties to a reasonable allocation of court time, the judge said. He suggested a sampling approach, letting each party select items from the bill and apply any reduction identified to the bill as a whole.

Lady Justice Andrews agreed, adding: ‘The level of costs claimed is eye-watering even by Commercial Court standards. It is possible that the resolution of the preliminary issues will significantly truncate the time required to carry out the remainder of the costs assessment, but the history of this litigation does not give rise to grounds for any optimism on that score.’

Source: The Law Society Gazette

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2027: We’re on Track, ADC Hails S’Court Ruling

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The African Democratic Congress (ADC) has declared that it would never be intimidated, distracted, or silenced in its push to realize a better Nigeria.

Spokesman of the ADC, Bolaji Abdullahi, said this in reaction to the Supreme Court ruling, which affirmed David Mark’s leadership of the party.

Abdullahi said the judgment has affirmed that the Mark and Rauf Aregbesola leadership of the party is legitimate.

Abdullahi said: “The African Democratic Congress (ADC) congratulates all our members and leaders across the country on today’s Supreme Court ruling which affirmed the leadership of our party under Senator David Mark as National Chairman, and Ogbeni Rauf Aregbesola as National Secretary.

“Today’s decision is a clear affirmation that our party, its structures, and its leadership under our National Chairman, Senator Mark, and our National Secretary, Ogbeni Aregbesola, are legitimate.

“We commend the five-man panel of the Supreme Court, whose unanimous judgment has today done great credit to the judiciary in our country and our political system.

“However, while we welcome this judgment, we do not mistake it for the end of the struggle. The events leading up to this moment have exposed a troubling pattern of interference, bad faith, and attempts to weaken opposition voices in Nigeria.

“Let it be clearly stated: the ADC will not be intimidated, distracted, or silenced. We remain resolute in our mission to provide Nigerians with a credible alternative.

“We therefore urge all our members, supporters, and democratic stakeholders across the country to remain vigilant.”

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Tinubu Appoints Bianca Ojukwu As Foreign Affairs Minister

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2027: Lagos APC Guber Aspirant Rejects Hamzat As Consensus Candidate

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All Progressives Congress (APC) governorship aspirant in Lagos State, Samuel Ajose, has declared that the endorsement of Deputy Governor Obafemi Hamzat as the next governor by Governor Babajide Sanwo-Olu and the Governance Advisory Council (GAC) will not stand.

GAC, regarded as the highest decision-making body of the All Progressives Congress in Lagos State, endorsed Hamzat, as its consensus candidate for the 2027 governorship election.

The decision was reached during a closed-door meeting held at Lagos House, Marina, indicating an early alignment within the ruling party ahead of the next electoral cycle.

Speaking after the session, GAC leader, Tajudeen Olusi, said members unanimously agreed on Hamzat, expressing confidence in his ability to sustain and build on the state’s developmental progress.

Olusi explained that the meeting was convened to deliberate on the party’s forthcoming primaries and assess the governorship position ahead of the 2027 elections.

Speaking about the GAC adoption of Hamzat as Lagos APC consensus 2027 governorship candidate on Arise News on Tuesday, Ajose said that Sanwo-Olu and others are trying to force President Tinubu into making a decision.

“I don’t think our president, Asiwaju Bola Ahmed Tinubu, is giving in to what they are doing.

“What they are just trying to do is to coerce him into taking a decision, and I don’t think that decision will stand.”

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