Situating the Efficacy of Arbitration Agreements Vis-à-Vis the Inherent Jurisdiction of National Courts under Nigerian Law

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ABSTRACT

Situating the Efficacy of Arbitration Agreements Vis-à-Vis the Inherent Jurisdiction of National Courts under Nigerian Law

Stanley U. Nweke-Eze*

The choice of arbitration as the preferred mechanism for the settlement of commercial disputes is on the rise. This holds, even in the Nigerian context, since parties have the freedom to choose the forum for resolving any differences that may arise between them, and arbitration is usually the preferred choice for many reasons. However, irrespective of the choice or agreement of the parties regarding the forum for dispute resolution, Nigerian courts still have the jurisdiction to resolve such disputes. This often leads to a potential tension between the parties’ choice and the national courts’ inherent jurisdiction. This paper analyses the effectiveness of contractual agreements to settle disputes by arbitration in the face of the inherent jurisdiction of Nigerian courts to resolve those disputes, notwithstanding the parties’ agreement to the contrary.

Keywords: arbitration, arbitration agreements, jurisdiction, national courts, Nigerian law.

INTRODUCTION
In Nigeria, the Constitution of the Federal Republic of Nigeria 1999 (as amended) inherently vests in the national courts’ judicial powers for settling disputes between parties.₁ However, parties to a dispute may agree to refer their dispute to an alternative forum, such as an arbitral tribunal, instead of Nigerian courts. Despite such an agreement, a party may refer their dispute to the Nigerian courts. An agreement between parties cannot prevent Nigerian courts from resolving any dispute. Put differently, Nigerian courts may resolve a dispute notwithstanding the arbitration agreement. Therefore, one question arises: if a party draws the court’s attention to the arbitration agreement, what step(s) should the Nigerian courts take?

This paper focuses on the interplay between the judicial powers of Nigerian Courts and parties’ arbitration agreements in determining commercial disputes. It begins with an overview of arbitration as a mechanism for settling disputes under Nigerian law (section 2), proceeds to analyse the inherent jurisdiction of Nigerian courts in that regard (section 3), reconciles arbitration agreements with the jurisdiction of Nigerian courts under Nigerian law (section 4) and offers concluding thoughts (section 5).

* LL.B (UNIZIK), LL.M (Cambridge), LL.M (Harvard), PhD (HKU)

1. Section 6(6)(b) of the 1999 Constitution of the Federal Republic of Nigeria (as amended)

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.15 No.3