NIGERIA Law and Practice Contributed by: Tayo Oyetibo LP
ing Nigeria as an increasingly competitive forum for resolving complex commercial disputes.
ing the timeframe within which proceedings may be instituted. In practice, careful consideration must be given to the applicable limitation regime, as failure to commence proceedings within the prescribed period is fatal to the claim, however meritorious. 2.2 Court Structure The Nigerian court system is constitutionally struc- tured into courts of first instance (trial courts) and appellate courts, with a further distinction between inferior and superior courts of record. At the apex of the hierarchy is the Supreme Court of Nigeria, which is the final court of appeal. Beneath it is the Court of Appeal of Nigeria, which hears appeals from the trial courts and certain statutory tribunals such as the Investments and Securities Tribunal and certain election tribunals. These appellate courts are followed by the superior trial courts, which include the Federal High Court, the various State High Courts, the National Industrial Court of Nigeria, as well as the Sharia Courts of Appeal and Customary Courts of Appeal. These courts are established under Section 6 (5)(a)–(j) of the Constitution of the Federal Republic of Nigeria and are collectively recognised as superior courts of record, with extensive jurisdiction over civil and criminal matters. Inferior courts of record, on the other hand, are estab- lished by statutes other than the Constitution and include: • Magistrate Courts; • District Courts; • Area Courts; and • Customary Courts. These courts typically exercise limited jurisdiction, often defined by subject matter and monetary thresh- olds. In addition, the Nigerian legal system recognises cer- tain specialist courts and quasi-judicial bodies with defined subject-matter jurisdiction. Notable among these are the National Industrial Court (with exclusive
2. Litigation 2.1 Limitation Periods
Limitation periods applicable to the commencement of claims in Nigeria are governed by the various Limi- tation Laws of the constituent States and accordingly may differ depending on the jurisdiction in which the cause of action arises. By way of illustration, under the Limitation Law of Lagos State, being the most com- mercially significant jurisdiction, the following limita- tion periods apply: • contract and tort – actions founded on simple con- tract or tort must be commenced within six years from the date the cause of action accrued; • recovery of land – actions for the recovery of land are subject to a limitation period of 12 years; • negligence involving personal injury – actions for negligence where the claim includes damages for personal injury must be brought within three years. • defamation (slander) – actions for slander must be commenced within two years; • penalties and forfeiture – actions to recover a statutory penalty or forfeiture are also subject to a two-year limitation period; • speciality claims (instruments under seal) – actions founded on instruments under seal (including claims to recover sums secured by a mortgage or charge, arrears of interest or to enforce an arbitral award where the arbitration agreement is under seal) are subject to a 12-year limitation period; and • enforcement of judgments – an action to enforce a judgment of a Nigerian court must be com- menced within 12 years from the date the judg- ment became enforceable. In contrast, actions to enforce foreign judgments are generally subject to a six-year limitation period. It is also pertinent to note that in cases of continuing damage or injury, the law recognises the accrual of a fresh cause of action from time to time for as long as the wrongful act persists. In such circumstances, the limitation period does not run conclusively until the wrongful conduct ceases, thereby effectively extend-
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