NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
does not violate mandatory provisions of the Act or public policy. Separately, the new Arbitral Review Tribunal under the AMA provides an internal mechanism for reviewing awards within the arbitral process itself. Parties can opt into this by express agreement, thereby expand - ing the opportunities for correcting errors before an award becomes final. 11.3 Standard of Judicial Review Standard of Judicial Review of the Merits of a Case Under Nigerian law, courts generally adopt a defer - ential approach to the merits of an arbitral award. Judicial review is not an opportunity for the courts to reassess the facts, evidence or substantive rea - soning of the tribunal. Instead, courts focus strictly on the statutory grounds for setting aside or refusing recognition and enforcement of an award, as provided under the AMA. The courts will not conduct a de novo review of the dispute or substitute their own assessment of the merits for that of the tribunal. Even where an applica - tion is brought to set aside an award or resist enforce - ment, the review remains limited to issues such as procedural irregularity, excess of jurisdiction, breach of natural justice or matters of public policy. Nigeria’s Ratification of the New York Convention Nigeria is a signatory to the 1958 New York Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards, having ratified it on 17 March 1970. The country applies the Convention on the basis of two standard reservations: • Reciprocity Reservation: The Convention applies only to awards made in other contracting states. • Commercial Reservation: The Convention is lim - ited to disputes arising out of legal relationships, whether contractual or not, that are considered commercial under Nigerian law. 12. Enforcement of an Award 12.1 New York Convention
In addition to the New York Convention, Nigeria is also a party to the 1965 ICSID Convention, which governs the settlement of investment disputes between states and nationals of other states. 12.2 Enforcement Procedure Procedures and Standards for Enforcement of Awards The enforcement of arbitral awards depends on whether the award is foreign or domestic. • Domestic awards are typically enforced by apply - ing to the High Court for enforcement as a judg - ment of the court. This is done under the AMA or, in some instances, under the older Arbitration and Conciliation Act if applicable by transitional provi - sions. • Foreign awards are generally enforced under the 1958 New York Convention, which has been incor - porated into Nigerian law through the AMA. The applicant must produce the original award or a duly certified copy, along with the original arbitration agreement or a certified copy. Awards Set Aside at the Seat of Arbitration/Awards Subject to Ongoing Set-Aside Proceedings at the Seat Nigerian courts tend to respect annulment deci - sions made by the courts at the seat of arbitration. If an award has been set aside at the seat, Nigerian courts are generally unlikely to enforce it. Where set- aside proceedings are ongoing in the courts of the seat, Nigerian courts may stay or suspend enforce - ment proceedings pending the conclusion of those proceedings. The AMA gives the court discretion to adjourn its decision on enforcement and may, on the application of the enforcing party, order the opposing party to provide security. Sovereign Immunity at the Enforcement Stage State and state entities may raise the defence of sovereign immunity to resist enforcement. Nigerian courts recognise the doctrine of restrictive sovereign immunity, meaning that immunity does not generally apply to commercial activities. Thus, if the state entity has entered into an arbitration agreement relating to commercial transactions, Nigerian courts are likely to treat this as a waiver of immunity from jurisdiction and
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