Arbitration has become an increasingly preferred mechanism for resolving commercial disputes in Nigeria, offering parties a faster and more flexible alternative to litigation. However, the true effectiveness of arbitration lies in the ability to enforce arbitral awards seamlessly. While Nigeria has made significant strides in aligning its legal framework with international best practices, several challenges continue to impact the enforcement process. In Nigeria, the principal legislations on the enforcement of foreign arbitral awards are the Reciprocal Enforcement of Foreign Judgment Ordinance 1958, Foreign Judgment (Reciprocal Enforcement) Act 1961, and Arbitration and Mediation Act, 2023. This article seeks to highlight the inconsistencies inherent in these legislations that pose a threat to international best practices; and calls for a legislative amendment of those provisions.
Judicial Recognition and Enforcement of Arbitral Awards in Nigeria
In Nigeria, like in most other States, arbitral awards are generally considered final and “binding on all parties, and has the force of judgment.” The judicial attitude is that of respect for party autonomy which emphasizes the liberty to agree on the ‘rules of the game’ and be bound by the outcome. Thus, the Nigerian Supreme Court had in Mr. Charles Mekwunye v. Mr. Christian Imoukhuede held inter alia: “An arbitral award is a final judgment on all matters referred to an arbitrator and as such courts are enjoined to, as much as possible, uphold or affirm and enforce arbitral awards when approached especially in view of the fact that parties had voluntarily resolved or agreed to submit to the jurisdiction of the arbitrator or arbitrators to resolve their dispute.”
In giving effect to arbitral awards, however, there is a duty on the courts to balance the goal of preserving the finality of arbitration with the public policy of safeguarding the integrity of arbitration as a veritable alternative to litigation. These public policy considerations have been codified in various instruments, including the Arbitration and Mediation Act, the Foreign Judgment (Reciprocal Enforcement) Act, etc.
