Summary

This is a rolled-up application for permission to appeal, with appeal to follow if permission is granted, against the decision of Mr. Justice Robin Knowles CBE (the "Judge"), in relation to the currency in which an order for costs (the "Costs Order") was made, against which the Judge refused permission to appeal.

The Costs Order and refusal of permission to appeal were made at the conclusion of a successful application by the Federal Republic of Nigeria ("Nigeria") under section 68 of the Arbitration Act 1996 ("section 68" and the "Arbitration Act") to set aside two arbitration awards (the "Awards") in favour of Process & Industrial Developments Limited ("P&ID").

There are two issues before this Court. The first issue is whether section 68(4) of the Arbitration Act deprives this Court of jurisdiction to hear P&ID's appeal. Section 68(4) provides,

"The leave of the court is required for any appeal from a decision of the court under this section."

The second issue (which is only reached if this Court has jurisdiction and grants permission to appeal) is whether the Judge was right to order P&ID to pay Nigeria's costs in sterling. Although Nigeria was billed by its English lawyers in sterling, and paid them in sterling, P&ID contends that Nigeria funded such payments by exchanging naira from its consolidated revenue fund, so that the Costs Order should have been in naira.

The issue is of some financial consequence, because the naira depreciated significantly against sterling in the period between Nigeria's payments to its lawyers and the making of the Costs Order. Nigeria's legal fees and disbursements are said to have amounted to around £43 million. P&ID asserts that payment of such fees and disbursements at the relevant times would have cost Nigeria a total of about 23 billion naira; but if P&ID is required to pay £43 million in costs now, that could be exchanged by Nigeria at the current rate to about 76 billion naira.

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