NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
whether contractual or not, that are considered commercial under Nigerian law. 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 possibly also from execution, subject to the particular facts and applicable statutory provisions.
12.3 Approach of the Courts General Approach of the Courts
Nigerian courts are broadly supportive of arbitra - tion and generally adopt a pro-enforcement stance towards both domestic and foreign arbitral awards. Courts typically focus on procedural fairness and the narrow statutory grounds set out in the Convention and the AMA, rather than reviewing the merits of the underlying dispute. Refusal on Public Policy Grounds Public policy remains one of the key grounds upon which Nigerian courts may refuse enforcement of an award, but this is interpreted narrowly. Courts distin - guish between domestic public policy, which reflects fundamental principles and values of Nigerian law (for example, fraud, corruption, or manifest injustice in the arbitration process), and international public policy, which tends to be narrower and applies to the recog - nition of foreign awards. 13. Miscellaneous 13.1 Class Action or Group Arbitration Class and Group Arbitration in Nigeria Nigerian arbitration law does not specifically provide for class action arbitration or group arbitration. The AMA and prior legislation focus on party autonomy and typically contemplate arbitration between clearly defined parties who have agreed to submit their dis - putes to arbitration. In practice, this means that for claims to be heard together or on a representative basis, there must be a clear, express agreement by all affected parties. The absence of statutory provisions permitting or regu - lating class arbitration creates a significant limitation: arbitrators in Nigeria generally lack jurisdiction to con - duct class or group proceedings unless the parties have specifically consented to such a mechanism in their arbitration agreement.
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