NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
11. Review of an Award 11.1 Grounds for Appeal Recourse Against Arbitral Awards in Nigeria: Setting Aside Rather Than Appeal Under Nigerian law, particularly at Section 55 (3) of the AMA, there is no right of appeal from an arbitral award in the traditional sense of appellate litigation. Instead, the AMA provides limited grounds on which a party may apply to set aside an award before the court of the place where the award was made, such as where a party to the arbitration agreement was under some incapacity; the arbitration agreement is not valid under the law to which the parties have subjected it; or the award is in conflict with Nigeria’s public policy. Procedure for Applications to Set Aside Award Applications to set aside must generally be made within three months from the date the party received the award. Courts typically take a restrictive approach, intervening only where the specified statutory grounds are clearly met. The AMA introduces two new features that create additional, party-driven options. First, parties to a domestic arbitration may agree that an award can be appealed to the court on a question of Nigerian law. This right of appeal, however, is strictly limited to legal questions and depends entirely on party agreement. Second, the AMA establishes the option of an Arbi - tral Review Tribunal (a fresh arbitral tribunal that can reconsider an award before any recourse to court). This mechanism only applies if the parties expressly opt into it in their arbitration agreement or in writing. 11.2 Excluding/Expanding the Scope of Appeal Party Autonomy and the Scope of Challenge to Arbitral Awards in Nigeria The principle of party autonomy is fundamental and widely respected. However, when it comes to exclud - ing or expanding the statutory grounds for setting aside an arbitral award, the law draws a clear bound - ary. Parties cannot contractually expand the scope of appeal or challenge beyond what is provided in the AMA. Conversely, parties can agree to exclude certain challenges or restrict their right to seek to set aside an award, provided such an agreement itself
10.2 Types of Remedies Limits on Remedies That May Be Awarded by an Arbitral Tribunal in Nigeria Arbitral tribunals have broad powers to grant remedies that reflect the substantive rights of the parties, pro - vided the relief sought is within the scope of the par - ties’ arbitration agreement and does not infringe statu - tory or constitutional rights. These include monetary damages, declaratory relief, injunctions, orders for specific performance, and rectification of contracts. However, there are important limits shaped by public policy and the nature of arbitration as a consensual process. Tribunals generally cannot award punitive or exem - plary damages, as these are seen to go beyond com - pensatory justice and into the realm of punishment, which remains the preserve of national courts. Similar - ly, tribunals are not permitted to award remedies that would contravene Nigerian public policy or mandatory provisions of Nigerian law, such as criminal sanctions or penalties. 10.3 Recovering Interest and Legal Costs Recovery of Interest and Legal Costs in Nigerian Arbitration Parties to arbitration seated in Nigeria are generally entitled to claim interest on sums awarded, both for the period prior to the commencement of arbitration (pre-award interest) and for the period after the award is made until payment (post-award interest). Under the AMA, the arbitral tribunal has the discretion to award such interest at a rate it considers reasonable, unless the parties have agreed otherwise in their contract. Regarding legal costs, the prevailing practice aligns with the principle of “costs follow the event”, hence the successful party is typically entitled to recover reasonable costs, including arbitration costs, tribu - nal fees, and legal representation expenses, unless the tribunal finds it equitable to order otherwise. The tribunal may also take into account factors such as the parties’ conduct, the complexity of the issues, or whether a party acted unreasonably in the course of proceedings.
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