Enforcement Of Domestic And International Arbitral Awards | Statutory Requirements & Role Of Seat Of Arbitration

A key component of arbitration's efficacy is the enforceability of arbitral awards, which makes it a popular means of settling international commercial disputes. International frameworks such as the 1958 New York Convention give credibility, but the arbitration's location is crucial since it determines the relevant procedural legislation, the level of court intervention, and the ease of enforcement. According to international norms, arbitration-friendly jurisdictions like Nigeria, which has the Arbitration and Mediation Act 2023, provide for the modalities for the enforcement of arbitral awards.

It is against this background that this article examines both the statutory requirements for enforcing arbitral awards and the strategic influence of the seat of arbitration on their finality and enforceability.

LEGAL FRAMEWORK

The following are the legal frameworks for the recognition and enforcement of domestic and foreign arbitral Awards in Nigeria:

1. The International Centre for the Settlement of Investment Disputes (ICSID) Convention
2. The Convention on the Recognition and Enforcement of Foreign Arbitral Awards
3. The Arbitration and Mediation Act of Nigeria, 2023
4. The Foreign Judgments (Reciprocal Enforcement) Act Cap F35 LFN, 2004

NATURE OF AN ARBITRAL AWARD

An arbitral award is the complete, final, and binding determination of all issues brought before an arbitral tribunal by the parties.¹ It is the final resolution of the matter or decision, on the merits of all the issues, by the arbitral tribunal. According to the Arbitration and Mediation Act 2023, an arbitral award must be in writing and signed by the arbitrator or arbitrators². If the tribunal comprises more than one arbitrator, the signatures of the majority will suffice, provided the reason for any missing signature is explained.

Additionally, the award must state the reasons upon which it is based unless otherwise agreed by the parties. It must also specify the date the award was made and the place of arbitration (often referred to as the "seat" of arbitration). Once the award is issued, the parties are notified, and a copy is delivered to them.³

Generally speaking, the position of the law is that an arbitral award is binding as it is recognizable and enforceable by the courts upon an application by the successful party. This has been upheld in a plethora of cases, including the case of OGBUEHI v. NNAJI & ORS⁴ where it was held that:

"... there is no dispute that parties who, voluntarily, submitted to arbitration or arbitral proceedings are bound by the arbitral decision. See Ohiaeri Vs Akabueze (1992) 2 NWLR (Pt.221) 1 at 22; Egbuchulam Vs Egbuchulam (2014) LPELR – 22831 (CA); Ibeleme Vs Uwamacha (2014) LPELR. See also Onwa & Ors Vs Nka & Ors (1996) 7 NWLR (pt.458) 1; (1996) LPELR – 2711 (SC), where the Supreme said: "The law is well settled that where disputes or matters in difference between two or more parties are by consent of the disputants submitted to a domestic forum, inclusive of arbitrations, or a body of persons invested with judicial authority to hear and determine such disputes and matters for investigation, in accordance with customary law and general usages, and a decision is duly given, it is conclusive and unimpeachable (unless and until set aside on any of the recognized grounds) as the decision of the constituted Court of the land. Such a decision is binding on the parties and the Court, in appropriate cases, will enforce it." Per ITA GEORGE MBABA, JCA (Pp 19 – 20 Paras F – E)

It is imperative to mention that there are various types of arbitral awards, which include an interim award, a final award, a consent/agreed award, an interlocutory award, a partial award, a default award, etc.⁵

ROLE OF THE SEAT OF ARBITRATION

The seat is a legal concept referring to the jurisdiction in which the arbitration is deemed to take place. It is the 'legal place' of an arbitration. The seat is usually determined by the parties in their arbitration agreement. Under most arbitration rules, in the absence of agreement, the seat is fixed by the arbitral institution or the arbitral tribunal once appointed.⁶

In many arbitrations, the seat and the physical place of an oral hearing are the same. However, it is possible for parties to designate one place as a seat and hold hearings in a different place for convenience. The seat also need not be located in the jurisdiction whose law governs the substance of the dispute. For example, an arbitration may involve a contract governed by New York law but be seated in France. A choice-of-law clause in a contract determines which law governs the dispute's merits. It will not determine the seat.⁷

PROCEDURE FOR ENFORCEMENT OF A DOMESTIC ARBITRAL AWARD

It has been mentioned earlier that an arbitral award is binding on the parties to the arbitral proceedings. In law, the general rule that a victorious party must not be denied the opportunity to reap the fruit of its judgment also applies in arbitration to arbitral awards. However, it is important to state that an award, although akin to a court's judgment, does not connote that an aggrieved party must comply with its order. This is because it does not possess the attributes of self-execution like a court judgment possesses.⁸

The legal modalities for the enforcement of an arbitral award in Nigeria are governed by the provisions of the Arbitration and Mediation Act, 2023. The Act provides as follows:

57.—(1) An arbitral award shall, irrespective of the country or state in which it is made, be recognised as binding, and on application in writing to the Court, be enforced by the Court subject to the provisions of this section and section 58 of this Act.

(2) The party relying on an award or applying for its enforcement shall supply —

(a) the original award or a certified copy of it ;

(b) the original arbitration agreement or a certified copy of it; and

(c) where the award or arbitration agreement is not made in the English language, a certified translation of it into the English Language.

(3) An award may, by leave of the Court, be enforced in the same manner as a judgment or order to the same effect.

To successfully enforce an arbitral award, the applicant is expected to file in court an Originating Motion on Notice, Affidavit in Support, and Written Address ⁹. An arbitral award is recognized as binding upon written application to the court. Section 91 of the Arbitration and Mediation Act 2023 defines "Court" as the High Court of a State, the High Court of the Federal Capital Territory, Abuja, or the Federal High Court.

PROCEDURE FOR ENFORCEMENT OF AN INTERNATIONAL ARBITRAL AWARD

International arbitration involves parties whose places of business are in different countries at the time of the arbitration agreement or when substantial parts of the obligations are performed outside Nigeria.¹⁰

There are several methods to enforce a foreign arbitral award in Nigeria:

1. Enforcement under the Foreign Judgment (Reciprocal Enforcement) Act: Section 2 of the Foreign Judgment (Reciprocal Enforcement) Act allows arbitral awards to be registered before a Nigerian court with jurisdiction over the dispute and enforced as a court judgment. However, this method requires reciprocity; the country where the award was rendered must afford Nigeria similar enforcement opportunities.¹¹
2. Enforcement under Section 57 Arbitration and Mediation Act 2023: Regardless of the country it was made, an arbitral award is recognized as binding and enforceable by application to the court. The enforcing party must provide the following:
   -The original award or a certified copy;
   -The original arbitration agreement or a certified copy;
   – If not in English, a certified translation.

1. Enforcement under the New York Convention: Section 60 of the Arbitration and Mediation Act 2023incorporates the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 (New York Convention). The Convention applies to awards made in a country that is a signatory to the Convention. Parties seeking enforcement in Nigeria must provide a duly authenticated original award or certified copy and the original or certified copy of the arbitration agreement.

1. Enforcement of ICSID Awards: Awards made by the International Centre for Settlement of Investment Disputes (ICSID) can be enforced in Nigeria. A certified copy of the award filed in the Supreme Court by the enforcing party will be treated as a final judgment of the court, allowing for swift enforcement with minimal opportunity for objection, Article IV Convention on the Recognition and Enforcement of Foreign Arbitral Awards, June 10, 1958.

CONCLUSION

The true effectiveness of arbitration lies in ensuring that arbitral awards can be enforced. This is contingent upon the arbitration's chosen location, which influences the recognition and enforceability of an award, in addition to national legislation and international accords such as the New York Convention. The Arbitration and Mediation Act 2023 of Nigeria has brought the system up to international standards, while problems such as judicial delays still exist.

Footnotes

1. Hagler Okorie: "Arbitration Law; Practice and Procedure" 1^st Edition, Page 200

2. See Section 47 of the Arbitration and Mediation Act, 2923

3. See generally Section 47 of the Arbitration and Mediation Act, 2023, and Articles 41 & 42 of the AMA Rules, 2023

4. (2015) LPELR-25992(CA)

5. Hagler Okorie: "Arbitration Law; Practice and Procedure" 1^st Edition, Pages 208 – 213

6. https://rosewoodlegal.com/arbitration-in-nigeria-procedure-for-recognition-and-enforcement-of-arbitral-awards/ accessed September 17, 2025

7. https://www.mololamken.com/knowledge-what-is-the-seat-of-an-arbitration accessed September 17, 2025

8. Hagler Okorie: "Arbitration Law; Practice and Procedure" 1^st Edition, Pages 259

9. See generally Rules 3 & 7 of the Arbitration Proceedings Rules, 2020

10. https://broderickbozimo.com/enforcing-arbitration-awards-global-and-domestic-views/ accessed September 17, 2025

11. https://rosewoodlegal.com/arbitration-in-nigeria-procedure-for-recognition-and-enforcement-of-arbitral-awards/ accessed September 17, 2025

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.