For a long time, it seemed jurisdictional boundaries regarding foreign-seated arbitrations were clear. While national courts in the seat of arbitration are empowered to recognise and enforce the award or set aside the award, national courts in enforcement jurisdictions are limited to recognising and enforcing the award or refusing the recognition of the award. This glaringly means that only national courts in the seat of arbitration are empowered to set aside a foreign arbitral award.
However, whether a Nigerian court has the jurisdiction to set aside a London-seated arbitral award was a question the Court of Appeal in Oil & Industrial Services Limited v Hempel Paints (South Africa) Pty Limited had to determine. The Court of Appeal’s decision in this case provided clarity on the jurisdiction of Nigerian courts regarding foreign-seated arbitrations. It served as a departure from the previous position of the Court of Appeal in Limak Yatirim, Enerji Uretim Isletme Hizmetleri Ve Insaat A.S. & Ors v Sahelian Energy & Integrated Services Ltd where the Court upheld the trial court’s decision that Nigerian courts are endowed with the jurisdiction to set aside foreign arbitral awards.
This case provided the Court of Appeal with the long-awaited opportunity to rehash Limak’s position and realign Nigeria as a pro-arbitration jurisdiction.