Authored By: Ohwo Frances Aghogho
Afe Babalola University
Arbitration has emerged as a preferred mechanism for resolving commercial disputes due to its flexibility, confidentiality and efficiency compared to traditional litigation. Central to the arbitration process is the arbitration clause, through which parties agree in advance to submit disputes arising from their contract to arbitration. In nigeria, arbitration clauses are generally recognized and enforced under the Arbitration and Mediation Act 2023, reflecting the principle of party autonomy and Nigeria’s pro-arbitration stance.
Despite the legal recognition, the enforceability of arbitration clauses has been without challenges. Questions often arise regarding poorly drafted clauses, waiver of arbitration rights, court intervention, and circumstances in which Nigerian courts may refuse to stay proceedings in favour of arbitration. These issues have generated judicial debate on the extent to which courts should uphold contractual agreements to arbitrate while balancing access to justice and public policy concerns
This article examines the enforceability of arbitration clauses in Nigeria, analyzes the legal and judicial framework governing their enforcement, considers whether the current regime adequately supports arbitration as an effective alternative dispute resolution mechanism.
Legal framework governing arbitration clauses in nigeria.
ARBITRATION AND MEDIATION ACT 2023
[1]The Arbitration and Mediation Act, 2023 (AMA) is the main arbitration legislation in Nigeria and repealed the Arbitration and Conciliation Act. Some of the AMA innovations relate to third party funding, appointing emergency arbitrators, joinder of parties, arbitrator immunity, and an arbitral award review tribunal.
[2]The Arbitration Law of Lagos State 2009 (AL 2009) applies to all arbitration in Lagos State except where the parties expressly exclude it[3] (section 2(1), AL 2009). If the parties expressly exclude it, any other law specified by the parties in place of the AL 2009 (the AMA or another arbitration law) applies. There is an ongoing debate about whether Lagos State, as part of the Federal Republic of Nigeria, has power to enact an arbitration law. More often than not, parties choose the AMA where they prefer the seat of the arbitration to be a territory or state in Nigeria. Conversely, parties choose the AL 2009 where they prefer the arbitration venue to be in Lagos State and the arbitration agreement does not expressly refer to the AMA or another arbitration law to govern the proceedings. Due to the wide applicability of the AMA to the various states and the Federal Capital Territory, the AL 2009 does not feature prominently in most arbitration agreements.
The AMA does not expressly distinguish between domestic and international arbitration. However, the AMA applies to the following types of arbitration where the seat of the arbitration is in Nigeria: international commercial arbitration, inter-state commercial arbitration, and commercial arbitration in Nigeria. The AMA applies to domestic and international arbitrations that designate a territory or state in Nigeria as the seat of arbitration.
The AMA substantially adopts the (UNCITRAL Model Law) and largely incorporates the 2021 revisions.
Many of the innovative changes in the AMA reflect the UNCITRAL Model Law in respect of arbitration and mediation. In addition, section 91(10) of the AMA expressly provides that the UNCITRAL Model Law must be factored in when the AMA is interpreted, to foster uniformity of application and observance of good faith.
III. Judicial approach to enforcement of arbitration clauses.
Generally, Arbitration Clauses are enforced with Common law principles, meaning that to be validly enforceable, they must be free from vitiating elements such as Fraud, Undue Influence, Duress, Mistake or Misrepresentation.
As earlier discussed, the presence of an Arbitration Clause suspends the jurisdiction of the court until the clause is enforced through an Arbitrator or an Arbitration Tribunal. The decision reached by the Arbitrator or Arbitration Tribunal is a final and binding decision called an Arbitral Award.
Enforcement of arbitral award.
[4]An Arbitral Award is a final and binding decision. The enforcement of Arbitral awards can be discussed under two major categories:
1.Domestic Award: where the award was given within Nigeria, it can either be enforced under common law or under the Arbitration and Conciliation Act. To be enforced under the Act, the following must be met:
2.The award must be in writing, containing the date and place of the arbitration and, where authorized, the basis of the award.
3.The award must be duly authenticated by the arbitrator. Where there is more than one, simple majority of the arbitrators suffices.
4.An affidavit shall be submitted attaching the original arbitration agreement or its Certified true copy.
5.An application seeking to enforce the award as though it were a judgment of the High Court.
For enforcement under common law.
[5]it must be shown that:
1.There was a dispute,
2.It was subject to arbitration
3.A valid arbitral award duly authenticated has been given.
An application to the Court within the jurisdiction where the Arbitral award was given by way of an originating summons supported by an affidavit and a written address is to be submitted with the following:
1.The authenticated copy of the arbitral award or
2.The certified true copy of the Award
3.Payment of fees as prescribed by the Registrar of the High Court
Note: High Court in this context refers to State and Federal High Court.
IV.Challenges to the Enforceability of Arbitration Clauses and in Nigeria
[6]One significant challenge is judicial intervention through allegations of arbitrator misconduct. Although misconduct remains a recognized ground for challenging awards, its imprecise scope has generated uncertainty. Nigerian courts have acknowledged that misconduct may include procedural irregularities, denial of fair hearing, or failure by an arbitrator to act impartially. However, the absence of a precise statutory definition has created room for expansive objections capable of delaying or frustrating enforcement.
Another challenge concerns statutory limitation periods applicable to enforcement proceedings. Uncertainty persists regarding when time begins to run for enforcing an arbitral award whether from the date of breach or the date of the award. This issue has significantly affected award creditors, particularly where delays in arbitral proceedings expose enforcement proceedings to limitation objections. Nigerian courts have at times adopted strict approaches capable of defeating otherwise valid claims.
Further, jurisdictional objections continue to complicate enforcement proceedings, particularly in relation to foreign awards and subjectmatter jurisdiction. Questions have arisen as to whether the enforcing court must possess jurisdiction over the underlying dispute or merely over recognition and enforcement proceedings. While one judicial line rejects subject-matter objections at the enforcement stage, uncertainty remains.
A further complication arises in maritime and admiralty disputes, where tension has existed between arbitration agreements . While the Supreme Court in [7]MV Lupex v Nigerian Overseas Chartering and Shipping Ltd affirmed that arbitration clauses do not necessarily oust the jurisdiction of courts, conflicting interpretations in later authorities have generated uncertainty regarding the enforceability of maritime arbitral awards. This inconsistency poses a significant challenge for commercial certainty.
[8]Taken together, these challenges demonstrate that while arbitration clauses and awards are generally enforceable in Nigeria, procedural technicalities, inconsistent judicial approaches, and jurisdictional objections continue to affect their practical effectiveness.
Practical solutions to strengthen enforcement
A.[9] Drafting Robust Arbitration Clauses
Many enforcement difficulties originate from poorly drafted arbitration agreements. Clauses should clearly define the seat of arbitration, governing law, scope of disputes, and mechanisms for enforcement, thereby reducing ambiguity and opportunities for challenge.
Ensuring Strict Procedural Compliance
Arbitrators and parties must adhere strictly to agreed procedures, timelines, and statutory requirements. Even minor procedural irregularities may provide grounds for resisting enforcement or setting aside awards.
Early Enforcement Planning
Enforcement should be considered at the contract formation stage. Selecting arbitration-friendly seats and rules that support efficient recognition and enforcement in Nigeria and abroad can prevent future obstacles.
D.[10] Leveraging the Arbitration and Mediation Act 2023
The Arbitration and Mediation Act 2023 introduces innovations such as emergency arbitrators, third-party funding, and enhanced enforcement provisions. Practitioners must utilise these mechanisms strategically to close procedural gaps and strengthen enforceability.
E.[11] Minimising Delay Through Procedural Strategy
Counsel should discourage dilatory tactics, oppose unnecessary adjournments, and pursue expedited hearing of enforcement applications. Frivolous interlocutory appeals should be challenged where they amount to abuse of process.
Promoting Institutional Arbitration
Recourse to established arbitral institutions such as Nigerian Institute of Chartered Arbitrators, International Chamber of Commerce and London Court of International Arbitration enhances procedural certainty, credibility, and reduces risks of awards being set aside.
Enhancing corporate awareness and due diligence
Businesses should approach arbitration clauses strategically, not as standard boilerplate. Proactive legal due diligence and early enforcement planning can help avoid common pitfalls.
V.Conclusion
The enforceability of arbitral awards and clauses is cental to the effectiveness of arbitration in Nigeria. Although challenges such as procedural irregularities, delays and public policy 0bjections persist,reformsunder the arbitrstion and Mediation act2023 and growing judicial support have strengthened the enforcement planning and consistent pro-enforcement judicial practice, Nigeria can foster greater commercial certainty and confidence in Arbitation.
Reference(S):
Cases
MV Lupex v Nigerian Overseas Chartering and Shipping Ltd (2003) 15 NWLR (Pt 844) 469 (SC).
Legislation
Arbitration and Mediation Act 2023.
Secondary Sources
Atoyebi OM, ‘Arbitration Clauses and Enforcement in Nigeria: An Overview’ (12 July 2024) <omaplex.com.ng>.
Banwo & Ighodalo, ‘Arbitration Procedures and Practice in Nigeria: Overview’ (20 April 2026) <banwo-ighodalo.com>.
Eyo C, ‘The Enforceability of Arbitral Awards in Nigeria: Pitfalls and Practical Solutions’ (LinkedIn, 26 April 2026).
Ikechukwu G, ‘Challenges to the Enforcement of Arbitral Awards in Nigeria’ (2018) Academia.edu.
[1] Banwo & Ighodalo, ‘Arbitation procedures and Practice in Nigeria: Overview’ (20 April 2026) https//ww.banwo-ighodalo.com acessed 26 april 2026.
[2] Banwo & Ighodalo, ‘Arbitation procedures and Practice in Nigeria: Overview’ (20 April 2026) https//ww.banwo-ighodalo.com acessed 26 april 2026.
[3] Arbitration And Mediation act 2023.
[4] O M Atoyebi, Arbitration Clauses and Enforcement in NIgeria: An overview’ (12 july 2024) https://omaplex.com.ng accessed 26 April 2026.
[5] O M Atoyebi, Arbitration Clauses and Enforcement in NIgeria: An overview’ (12 july 2024) https://omaplex.com.ng accessed 26 April 2026.
[6] Ginika Ikechukwu, Challenges to the Enforcement of Arbitral Awards in Nigeria (2018) Academia.edu h4.
[7] MV Lupex v Nigerian Overseas Chartering and Shipping Ltd (2003) 15 NWLR (Pt 844) 469; Lignes Aériennes Congolaises v Air Atlantic Nig Ltd (2006) 2 NWLR (Pt 963) 49.
[8] Ginika Ikechukwu, Challenges to the Enforcement of Arbitral Awards in Nigeria (2018) Academia.edu h4.
[9] Collins Eyo, ‘The Enforceability of Arbitral Awards in Nigeria: Pitfalls and Practical Solutions’ (LinkedIn, 26 April 2026) accessed 26 April 2026.
[10] Collins Eyo, ‘The Enforceability of Arbitral Awards in Nigeria: Pitfalls and Practical Solutions’ (LinkedIn, 26 April 2026) accessed 26 April 2026.
[11] Collins Eyo, ‘The Enforceability of Arbitral Awards in Nigeria: Pitfalls and Practical Solutions’ (LinkedIn, 26 April 2026) accessed 26 April 2026.
