NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
Application to Foreign and Domestic Third Parties These principles apply equally to foreign and domes - tic parties. However, while tribunals seated in Nigeria may address jurisdictional objections and rule on their own jurisdiction under the principle of competence- competence, the question of binding non-signatories often ultimately depends on later judicial review – par - ticularly if enforcement of an award against the non- signatory is sought. 6. Preliminary and Interim Relief 6.1 Types of Relief Tribunal’s Power to Award Interim Relief and Types of Interim Measures Available An arbitral tribunal is expressly empowered to grant interim measures of protection. Such interim meas - ures are binding rather than merely advisory. Once granted, they have the same effect as an order of the tribunal and may be recognised and enforced by the courts, unless the court decides otherwise on limited grounds set out in the AMA. The tribunal may order a wide range of interim relief, including but not limited to preservation of assets that might later be used to satisfy an award and maintenance or restoration of the status quo pending determination of the dispute. See Section 20 of the AMA. 6.2 Role of Courts Court-Ordered Interim Measures in Support of Arbitration Nigerian courts do play an important complementary role in granting preliminary or interim relief in arbitral proceedings. The courts may grant a broad range of interim relief in relation to domestic or foreign seated arbitration, including: • orders preserving the subject matter of the dispute; • orders securing assets or property that could be used to satisfy an eventual award; and • orders to maintain or restore the status quo or to preserve evidence. Emergency Arbitrators Under Nigerian Law The AMA expressly recognises and permits the appointment of emergency arbitrators under the rules of arbitral institutions that provide for such pro -
cedures. Decisions or orders of an emergency arbitra - tor under Nigerian law are binding on the parties, in the same way as interim measures issued by a regu - lar tribunal. The emergency arbitrator may grant relief aimed at preventing irreparable harm, preserving the status quo, protecting assets or evidence relevant to the arbitration. Limits on Court Intervention Once an Emergency Arbitrator is Appointed Once an emergency arbitrator has been appointed, the national courts generally cannot intervene to revisit or overturn the emergency arbitrator’s decision on the merits of the relief granted. However, courts may still exercise jurisdiction to enforce the emergency arbitra - tor’s order, or to address specific issues outside the scope of the arbitrator’s powers. 6.3 Security for Costs Power of Arbitral Tribunals to Order Security for Costs The law expressly empowers arbitral tribunals to order a party to provide security for costs. Under the AMA, a tribunal may, upon application by a party, issue an order requiring another party to furnish security to cover potential costs of the arbitration. Tribunals typically consider factors such as the apparent merits of the claim or defence; the financial standing of the party against whom the order is sought; and whether the application is being used tactically to obstruct the proceedings. Role of the Courts While the arbitral tribunal is the primary decision‑mak - er on security for costs, the courts also have support - ing powers. Before the tribunal is constituted, a party may apply to the court for interim relief, which may include an order for security for costs if circumstances justify urgent judicial intervention. Once the tribunal is in place, the courts usually defer to the tribunal’s competence to handle such applications, reflecting Nigeria’s policy of judicial non‑interference in matters within the tribunal’s jurisdiction.
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