NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
5. Jurisdiction 5.1 Challenges to Jurisdiction
5.3 Timing of Challenge Timing for Challenge Before the Court
Parties have structured opportunities to ask the court to review an arbitral tribunal’s jurisdiction. These opportunities arise at different stages: • Before the Tribunal is Constituted: A party sued in court despite an arbitration agreement may apply for a stay of proceedings and referral to arbitration. The court then assesses prima facie whether a valid arbitration agreement exists. • After the Tribunal is Constituted and Makes a Positive Jurisdiction Ruling: If the arbitral tribunal decides it has jurisdiction (usually raised as a pre - liminary issue under the competence‑competence principle), an aggrieved party may apply to the court (generally within 30 days) to challenge this ruling. This is the most common formal route to test jurisdiction in court during the proceedings. • After an Award is Rendered: A party may also chal - lenge the tribunal’s jurisdiction indirectly by seeking to set aside the award or resist its recognition and enforcement on the ground that the tribunal lacked jurisdiction. 5.4 Standard of Judicial Review for Jurisdiction/Admissibility Questions of Jurisdiction When a Nigerian court is invited to review a tribunal’s positive ruling on its own jurisdiction (under Section 14 (3) and (7) of the AMA), the review is generally con - ducted de novo. The court will not simply defer to the tribunal’s decision; it will independently examine whether the arbitration agreement is valid, covers the dispute, and binds the parties. This approach is consistent with international practice under the UNCI - TRAL Model Law, on which the AMA is largely based. At the enforcement or set-aside stage, courts also apply a full merits (de novo) review of jurisdiction if it is raised as a ground to set aside or refuse enforce - ment of an award. Questions of Admissibility In contrast, questions that go to the admissibility of a claim (rather than the tribunal’s jurisdiction to hear it at all) are generally treated as falling within the tribu - nal’s exclusive domain. Nigerian courts have shown reluctance to interfere with procedural decisions or
Tribunal’s Power to Rule on Its Own Jurisdiction The principle of competence‑competence is expressly recognised and applied under Section 14 of the AMA as it grants an arbitral tribunal the power to rule on its own jurisdiction, including objections with respect to the existence or validity of the arbitration agreement; and whether the tribunal is properly constituted or empowered to decide the dispute. 5.2 Circumstances for Court Intervention Circumstances Where Courts May Address Jurisdiction Courts may address the jurisdiction of an arbitral tri - bunal in three key scenarios: • At the Preliminary Stage: Where a party applies for a stay of court proceedings on the ground that the dispute should be referred to arbitration, the court must decide prima facie whether a valid arbitration agreement exists. • After a Tribunal’s Positive Ruling on Jurisdiction: If a tribunal rules under Section 14 (6) of the AMA that it has jurisdiction, an aggrieved party may apply to the court (usually within 30 days) to con - test that ruling. • At the Setting‑Aside or Enforcement Stage: After an award has been made, the court may, under Section 55 (3) and 58 (2) of the AMA, consider whether the tribunal had jurisdiction when asked to set aside or refuse enforcement of the award. Nigerian courts generally defer to the arbitral process and encourage parties to raise jurisdictional objec - tions first before the tribunal (reflecting the compe - tence‑competence principle). If the tribunal rules that it does not have jurisdiction (a negative jurisdictional ruling), Nigerian courts can review this. Under the AMA, a party dissatisfied with a negative ruling may apply to the court for a determination, and the court can overturn the tribunal’s finding if appropriate.
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