NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
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.
– including pleadings, evidence and the final award – should remain confidential unless the parties agree otherwise. However, confidentiality is not absolute. Nigerian law and practice recognise certain situations where dis - closure may be necessary or permitted such as where disclosure is required to protect or enforce a party’s legal right (such as in setting-aside or enforcement proceedings before a court). In practice, Nigerian courts have also acknowledged that once parties bring aspects of the arbitration into the public domain – such as by seeking enforcement of an award – the related documents and proceedings may become part of the court record, potentially limit - ing confidentiality to that extent. 10. The Award 10.1 Legal Requirements Legal Requirements and Timing of Arbitral Awards in Nigeria Per Section 47 of the AMA, an arbitral award must be in writing and signed by the arbitrator or all members of the arbitral tribunal. Where the tribunal comprises more than one arbitrator, the signatures of the major - ity suffice, provided that the reason for any omitted signature is explained. The award must also state the reasons on which it is based, unless the parties have agreed otherwise or the award is made by consent of the parties (a settlement award). In addition, it must specify the date of the award and the place of arbitration, which is deemed to be the place agreed by the parties or determined by the tribunal under the AMA. Regarding timing, the AMA generally requires that an award be made within 90 days of the date on which the parties or tribunal have declared proceedings closed, unless the parties agree to extend this period or the tribunal itself, for justifiable reasons, extends the time.
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