A major step toward modernizing the regulations governing the processing of conflicts through alternative dispute resolution procedures is the Arbitration and Mediation Act, 2023 (AMA 2023). The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, in particular, is brought into compliance with international law by the Arbitration and Mediation Act, 2023 (AMA 2023). Nigeria has ratified this agreement.

Definition of “Enforcement of Foreign Arbitral Award

The legal procedure by which a foreign award rendered by an arbitration panel in one nation is recognized and implemented in the courts of another is known as “enforcement of foreign arbitral award.” When a foreign arbitral award is enforced in Nigeria, Nigerian courts accept it and implement it as though it were a ruling from a Nigerian court. This is consistent with Nigeria’s obligations under international agreements including the Arbitration and Mediation Act of 2023 and the New York Convention.

The Arbitration and Mediation Act, 2023 (AMA 2023) is the main statute that controls the enforcement of foreign arbitral rulings in Nigeria. The law gives clear instructions on how foreign arbitral awards are recognized, registered, and enforced in Nigeria. It ensures that these awards are treated like court decisions made in Nigeria, but they must still follow the laws of Nigeria.

Processes Involved in the Enforcement of Foreign Arbitral Awards in Nigeria

The enforcement process in Nigeria, according to the Arbitration and Mediation Act, 2023, includes a few steps and procedures, which are enumerated below:

1. Application for Enforcement: The party that wants to enforce the award must apply to the Nigerian High Court. They need to submit documents such as the original or a certified true copy of the award and the arbitration agreement. If the documents are not in English, they must be translated into English (See Section 57 of AMA 2023).

2. Court Review: The Nigerian High Court checks if the award should be enforced. It examines whether it contravenes public policy (See Section 58 of the AMA 2023). The court does not re-examine the actual merits of the case but only ensures that the award is enforced correctly.

 3. Refusal of Enforcement: The court may refuse to enforce the award under certain conditions. These include whether the arbitration agreement was not valid, whether the opposing party did not receive proper notice, whether enforcing the award would violate Nigerian public policy, or whether the subject of the dispute cannot be decided through arbitration under Nigerian law as stipulated in Section 58 of the AMA 2023.

4. Registration and Effect of Enforcement: If the court accepts the enforcement of the award, it is registered and pronounced as a domestic judgment. Once registered, the award can be enforced like a standard court ruling or judgment, which might include taking possession of assets or garnishment of the account of the judgment debtor.

REFUSAL TO ENFORCE FOREIGN ARBITRAL AWARDS

A foreign arbitral award may not be enforceable in Nigeria for the reasons listed in the Arbitration and Mediation Act, 2023. These justifications, which are supposed to guarantee justice and safeguard Nigerian public interests, are comparable to those found in the New York Convention. Some of these justifications include:

1. Invalidity of the Arbitration Agreement: If the agreement to arbitrate was not valid under the laws of the country where the parties are from or where the award was made (Section 58(2)(a)(ii) of AMA 2023).
2. Lack of Proper Notice: If the opposing party did not receive proper notice of the arbitration or could not present their case (Section 58(2)(a)(iii) of AMA 2023).
3. Non-Arbitrable Subject Matter: If the dispute involves something that cannot be decided through arbitration under Nigerian law (Section 58(2)(a)(iv) & (v) of AMA 2023).
4. Improper composition of the Tribunal: If the tribunal was not appropriately formed according to the parties’ agreement or the laws of the country where the arbitration took place (Section 58(2)(a)(vi)&(vii) of AMA 2023).
5. Award set aside in the jurisdiction of Origin: If the award was cancelled or suspended by the courts in the country where it was originally made (Section 58(2)(a)(viii) of AMA 2023).
6. Incompatibility with Public Policy: If enforcing the award would go against Nigerian public policy (Section 58(2)(b)(ii) of AMA 2023).

Finally, the Arbitration and Mediation Act, 2023 (AMA 2023) represents a substantial advancement in Nigeria’s legal system for resolving international conflicts. It makes foreign arbitral awards enforceable in a straightforward and effective manner, treating them like local court rulings. The Act makes Nigeria a more desirable location for international dispute resolution by aligning Nigerian legislation with international norms, especially the New York Convention.