NIGERIA Law and Practice Contributed by: Tayo Oyetibo LP
Enforcement of Foreign Arbitral Awards Foreign arbitral awards may be enforced in Nigeria through the following mechanisms. • Recognition and enforcement under the AMA: Sec- tion 57 of the AMA provides that arbitral awards, irrespective of the country in which they were made, are recognised as binding and enforceable upon application to the court. The applicant is required to produce: (a) the original award or a certified copy; (b) the arbitration agreement or a certified copy; and (c) where necessary, a certified English translation. • Action upon the award: A foreign arbitral award may also be enforced by commencing a fresh action in court, relying on the award as creating a binding obligation. This route is particularly use- ful where statutory enforcement mechanisms are unavailable. Upon successful recognition or registration, both domestic and foreign arbitral awards are enforceable in Nigeria in the same manner as court judgments, typically through execution processes under the Sher- iffs and Civil Process Act. 9.3 Length of Time The duration of enforcement proceedings in Nigeria is largely fact-specific and depends on the enforcement route adopted, the nature of the judgment or award and whether the process is contested. Where enforcement is straightforward and uncontest- ed, for example, an application to enforce a domestic or foreign arbitral award by motion on notice, the pro- cess may be concluded within a few months (typically two to six months), depending on the court’s docket and procedural efficiency. Similarly, the registration of a foreign judgment under the relevant statutes may be relatively expeditious if no objection is raised. However, where enforcement is challenged, for instance, through applications to set aside, resist recognition or dispute jurisdiction, the proceedings may become protracted and extend to 12 months or significantly longer, particularly if appeals are pursued. Additional delays may also arise at the execution
stage, especially in garnishee proceedings involving financial institutions or government entities. 9.4 Grounds for Resisting Enforcement In relation to foreign judgments, enforcement may be refused where: • the foreign court lacked jurisdiction over the matter or the defendant; • the judgment was obtained by fraud; • enforcement would be contrary to public policy in Nigeria; • the judgment is not final and conclusive; • the judgment debtor was not properly notified of the proceedings or was denied fair hearing; • the party seeking enforcement is not the person entitled to the benefit of the judgment; or • the matter was already res judicata at the time the foreign judgment was delivered. In the case of foreign arbitral awards, similar principles apply, as codified under the Arbitration and Mediation Act 2023. Enforcement may be refused where: • a party to the arbitration agreement was under some incapacity or the agreement is invalid under the applicable law; • the party against whom the award is invoked was not given proper notice of the proceedings or was otherwise unable to present its case; • the award deals with matters beyond the scope of the arbitration agreement; • the composition of the tribunal or the procedure adopted was not in accordance with the parties’ agreement; • the award has not yet become binding or has been set aside or suspended by a competent authority; • the subject matter is not arbitrable under Nigerian law; or • enforcement would be contrary to public policy. Accordingly, while Nigerian courts are generally inclined to recognise and enforce foreign judgments and arbitral awards, such enforcement is subject to these limited but fundamental safeguards.
420 CHAMBERS.COM
Powered by FlippingBook