Nigeria is a common law jurisdiction due to its colonial history and the influence of the English legal system. Nigeria’s legal system is a fine blend of English-received law, statutes, judicial precedents, customary law and Islamic law. English judicial authorities continue to have a persuasive influence in Nigeria.

Nigeria’s judicial system is adversarial. Parties are required to present their cases before impartial judges who then reach decisions by applying legal principles to facts presented by the parties.

Cases in Nigeria are conducted as a blend of pleadings, oral arguments and written submissions. Court papers and written submissions are frontloaded to the courts and adopted during proceedings to ensure speedy proceedings. Oral arguments have been massively reduced in court proceedings. However, by the rules of courts, parties may be allowed reasonable time to make oral submissions.

Nigeria is a federation consisting of a federal government and 36 component states. There are federal and state trial and appellate courts.

The Supreme Court

The Supreme Court of Nigeria is the apex court and the final appellate court for civil and criminal matters. The decisions of the Supreme Court (which hears appeals from the Court of Appeal) are final and binding on all other courts in the country. The Supreme Court also exercises original jurisdiction in respect of disputes between the federation and state(s), among the states, between the National Assembly and the president of Nigeria, and between the state houses of assembly and states.

The Court of Appeal

The Court of Appeal is next to the Supreme Court of Nigeria in the hierarchy with various divisions across the country. The Court of Appeal hears both civil and criminal appeals from various courts including the Federal High Court, the National Industrial Court, the High Court of the Federal Capital Territory, and the High Courts of states. The Court of Appeal has original jurisdiction to hear and determine presidential election petitions.

The Federal High Court, National Industrial Court, High Court of the Federal Capital Territory, and the High Courts of States

Next in the hierarchy are the Federal High Court, the National Industrial Court, the High Court of the Federal Capital Territory, and the High Courts of states. Each of these courts has its own subject-matter jurisdiction. For example, the Federal High Court has exclusive jurisdiction over matters such as the admiralty, aviation, banking, intellectual property, taxation, etc. The High Courts of States have jurisdiction to hear and determine any civil proceedings in which the existence or extent of a legal right, power, duty, liability, privilege, interest, obligation or claim is in issue. The National Industrial Court is focused exclusively on labour, employment and related matters.

The Inferior Courts

Beneath these are inferior courts such as magistrate/district courts, which deal with less serious civil and criminal matters at the lower level. In Northern Nigeria, there are Sharia courts that apply Islamic law in personal and family matters, while customary courts in Southern Nigeria handle cases based on indigenous customs and traditions. Each level of inferior court operates within its designated jurisdiction, and higher courts within the same state review the decisions of these inferior courts through appeals. With the exception of the courts in the Federal Capital Territory, the inferior courts are usually established by state laws.

The Federal Courts and Tribunals

The Supreme Court, the Court of Appeal, the Federal High Court and the National Industrial Court, the High Court of the Federal Capital Territory, the Sharia Court of Appeal of the Federal Capital Territory and the Customary Court of Appeal of the Federal Capital Territory are all federal courts. There are also specialised tribunals such as election tribunals, the Investments and Securities Tribunal, the Code of Conduct Tribunal, the Competition and Consumer Protection Tribunal, etc.

The Commercial Courts, Family and Probate Courts, and Small Claims Courts

While no special courts are established as administrative courts, some courts are designated as commercial courts, family and probate courts, and small claims courts. Certain subject matter falls exclusively within the jurisdiction of the different courts already stated above. For example, state High Courts handle family/probate cases, while the magistrates’ courts act as small claims courts.

Timeframe

The amount of time it takes for a matter to get to trial from the commencement of proceedings depends on the court. For superior courts, it typically takes between five and 24 months. While for inferior courts, it typically takes between three and nine months.

Court proceedings in Nigeria are generally open to the public, except for reasons such as public defence, public safety, public order, public morality, welfare of minors, or to protect the privacy of the parties. Similarly, court filings are accessible to the public, as they are considered public records.

Applications for official copies of the filings may be granted upon payment of a nominal fee. The courts may, however, refuse to approve an application to obtain a court filing that contains personal information, proprietary trade secrets, commercial or financial information, or that is in the public interest.

If the need arises for court proceedings to be kept confidential, an application may be made to the relevant court to invoke its statutory powers to exclude members of the public from the proceedings.

Only persons called to the Nigerian Bar and enrolled in the Supreme Court of Nigeria may appear in any Nigerian court. This is subject to payment of an annual practising fee. Foreign lawyers may only be allowed to appear in court if they obtain a warrant from the chief justice of Nigeria upon payment of a fee. Such warrant can only be used for the proceeding in respect of which it is issued.

The applicable common law of champerty and maintenance considers third-party funding as tortious conduct. Hence, Nigerian law prohibits litigation funding by a third party. However, third-party funding is permissible in arbitration. See the Arbitration and Mediation Act, 2023 (AMA), Section 61.

No action in court (except arbitration) is available for third-party funding. 

Third-party funding is not available for either the plaintiff or the defendant, except in arbitration.

No minimum and maximum amounts are applicable because third-party funding is prohibited, except in arbitration.

No costs are to be considered because third-party funding is prohibited, except in arbitration.

Contingency fees are permitted and valid under Nigerian law provided that:

• the contract is reasonable in all circumstances, including the risk and uncertainty of the compensation;
• the contract is not vitiated by fraud, mistake or undue influence, or contrary to public policy; and
• it is reasonably obvious that there is a valid cause of action.

Lawyers are prohibited from entering contingency fee arrangements when representing defendants in criminal cases (see the Rules of Professional Conduct for Legal Practitioners, 2023, Rule 50.)

Third-party funding is prohibited except in arbitration. Thus, there are no applicable time limits.

Some court rules require parties to attempt settlement before filing an action. For example, a party cannot institute an action in the High Court of Lagos State, until the expiration of seven days after delivery of a memorandum of claim setting out their claims and proposed settlement to the other party. The laws establishing some statutory bodies usually require that a pre-action notice must be served on the bodies before suits are commenced in court.

There are no requirements for the potential defendant(s) to respond to the pre-action protocol or pre-action notice. If a claimant fails to comply with a pre-action protocol or pre-action notice requirement, the court may accept the originating processes for filing and may strike out the suit.

Limitation laws differ from state to state in Nigeria. For instance, the applicable law in the Federal Capital Territory is the Limitation Act, 1966 while in Lagos State, the applicable statute is the Limitation Law of Lagos State, 2015.

In the Federal Capital Territory and Lagos State (and most states of the federation), the limitation periods are as follows:

• actions founded on simple contracts – six years;
• negligence suits – three years;
• actions upon instrument under seal – 12 years; and
• actions for recovery of land – 12 years.

Further, actions against public officers must be instituted within three months from the date when the cause of action accrued.

A limitation period is triggered by the accrual of a cause of action. A cause of action accrues when the event becomes complete, to enable a claimant to maintain an action.

For a court to have jurisdiction in a suit or over a defendant, the following conditions must be present:

• the plaintiffs must have locus (standing) to sue;

• the action must not be statute-barred;

• the proper parties must be before the court;
• the subject matter must fall within the jurisdiction of the court;
• the composition of the court as to members and qualifications is in accordance with the law; and
• the suit is commenced by due process of law and upon fulfilment of any condition precedent to the assumption of jurisdiction.

These jurisdictional requirements apply across various courts in Nigeria.

A civil lawsuit may be commenced by:

• a writ of summons;
• originating summons;
• an originating motion; or
• a petition. 

A writ of summons is the most common way to initiate a lawsuit and is used to commence contentious actions. An originating summons is used for non-contentious matters (eg, the interpretation of a document or statute). An originating motion and petition are used where they are prescribed by statute. An originating motion is also deployed where the law is silent on how an action can be commenced.

At the National Industrial Court and the magistrates’ courts, complaints and claim forms are used respectively, but the rules governing their use are similar to a writ of summons.

At the appellate courts, appeals are commenced by filing notice of appeal. 

Originating processes may be amended after they have been filed only with leave of the court.

In Nigeria, the mode of service of originating processes is by personal service. If personal service is not possible, the court may order substituted service upon an application of the claimant to that effect. Service of court processes on a company is effected by serving on a director or principal officer of the company, or by leaving the service at its registered office.

Service of court processes is the responsibility of the court and it is to be effected by court officers (bailiffs). However, courts permit parties (on their own) to serve subsequently filed processes that are not originating processes.

A party outside Nigeria can be sued outside Nigeria. However, the service of the originating process must be with the leave of the court. Once leave is granted, the seal of the relevant court must be affixed to the process for service out of the jurisdiction. The originating process may be passed to the solicitor-general by the chief registrar for onward transmission to the foreign country, where there is no existing convention with the other country in that regard. Where there is a convention with the other country, service may be effected through diplomatic channels or foreign judicial authorities.

Where the defendant does not respond to a suit to defend a claim made against them, the claimant may obtain a default judgment against the defendant. However, if the claimant is seeking declaratory relief, no default judgment will be made and the plaintiff must prove the claim before the court.

Representative actions are permitted in Nigeria. Representative actions are typically used in suits by or against:

• executors/administrators;
• guardians of infants and lunatics;
• holders of power of attorney; and
• family representatives.

Representative actions may be commenced where: (i) there is a common interest and grievance; and (ii) the relief sought is beneficial to those the claimants represent. Defending an action in a representative capacity requires the leave of the court.

Class actions are also permitted when the intended beneficiaries or class of persons cannot be readily ascertained or found. Class actions are not very common in Nigeria. In some states, a judge can appoint one or more persons to represent a class of persons interested in a class action. In the Federal High Court, class actions are instituted for matters concerning trade marks, copyrights, patents and designs.

The Federal High Court Rules, 2019 allow a person or member of a class to apply to the court or a judge in chambers to opt in or out of a class action and the court or judge in chambers may then, on good and justifiable cause, permit such person or member of a class to opt in or out of the class action.

In Nigeria, there is no strict legal requirement mandating lawyers to provide clients with a cost estimate of potential litigation at the outset. However, it is considered good practice for lawyers to discuss and agree on fees with clients upfront. 

Parties can make interim applications for various reliefs before the trial or substantive hearing of a claim. Such applications are not limited to case management issues, as orders of interim or interlocutory injunction and jurisdictional challenges may be made and granted through these applications.

A party can, at the commencement of a suit, apply for: (i) early judgment on some or all the issues in dispute; or (ii) the other party’s case to be struck out preliminarily before the substantive hearing. The court may grant a summary judgment if the opposing party has no valid defence to a claim or there is an admission. An application for summary judgment is made by filing a motion on notice, accompanied by an affidavit and written address. The respondent can prove that there are triable issues in the suit that merit a full hearing. The court will grant summary judgment if it is satisfied that the defendant has no real prospect of success and that there is no need for a full trial. A summary judgment is a final judgment and can only be set aside on appeal. If the defendant raises genuine issues for trial, the application will be dismissed, and the case will proceed to trial.

Further, a party can apply for a suit to be struck out or dismissed where the court lacks jurisdiction or the jurisdictional requirements are not met. Such an application is made by filing a preliminary objection/motion on notice, accompanied by an affidavit and written address. An affidavit may be dispensed with if the objection to jurisdiction is on points of law alone. An application challenging the jurisdiction of the court can be filed at any stage before or during a trial.  Some rules provide that where an objection is not filed within a particular period, the hearing may be delayed until the substantive case is heard. 

Dispositive motions that are commonly made are preliminary objections, applications for summary judgment, and default judgment applications (if the defendant fails to enter an appearance or file its defence within the statutory timeframe).

The rules of courts permit the joinder of interested persons as co-claimants or co-defendants to a suit where the joinder:

• will enable the court to effectively and completely determine the real issues in controversy;
• is necessary for the fair and just determination of the suit;
• will prevent multiplicity of actions;
• will enable the claimant to enforce the judgment; and
• is necessary in the interest of a fair hearing. 

The rules of courts also allow third-party proceedings where there would be a joinder of a third party shown to the court as the party that would bear the eventual liability. The applicant must make this application for joinder by filing a motion on notice, accompanied by an affidavit, and written address.

Generally, security for costs is prohibited under Nigerian law. However, a party may be required to provide security for costs in certain exceptional circumstances. This can arise in election petition matters, during the prosecution of appeals, and in interim and interlocutory applications for injunctions. 

Costs may be awarded after the determination of applications by the court, subject to the discretion of the court. The court may award costs in favour of a successful party to compensate the party for the out-of-pocket expenses incurred and time lost. Those awards are not usually substantial. 

Applications for costs may be made (i) in the application being heard by the court or in the respondent’s response to the application; and/or (ii) orally, after the court’s determination of the application. The award of costs is entirely at the discretion of the court and may be made without an application by the parties.

There is no timeframe for hearing of applications. The timing for hearing of applications depends on the nature of the application and congestion of the courts’ dockets. Applications of an urgent nature are usually heard and determined expeditiously. After hearing an application, the court may either deliver a bench ruling on the day the application is heard or adjourn for ruling to a date not exceeding three months from the date the application is heard. Where the respondent to an application decides not to oppose the application, the courts may hear and determine such application expeditiously, even within a day of filing.

Interim applications for injunction are usually heard and determined by the court within seven days from the date of hearing the application. Further, a party may request by way of letter and/or affidavit of real urgency that an application be dealt with expeditiously by the court.

Under Lagos and Federal Capital Territory Court Rules, discoveries may be of facts (otherwise called interrogatories) and/or documents (inspection) and they are both available to any party to civil proceedings. Interrogatories may include questions on facts directly in dispute. Scandalous and irrelevant questions are not permissible in interrogatories. The delivery of documents is made further to a written request to a party to deliver documents in their possession. Requests for discoveries must be served within seven days after the exchange of pleadings, and responded/objected to within seven days. Discovery is administered by the litigants with some supervision from the court.

Under the rules of courts in Nigeria, it is possible to obtain discovery from a third party by way of a subpoena. A third party may be compelled by way of subpoena to give oral or tender documentary evidence in court. To apply for a subpoena, a party must deliver and file the relevant praecipe forms provided by the rules, along with the subpoena, to the court registry. Service of a subpoena is required to be personal, but where personal service is not possible, service may be done by substituted means. No subpoena will be issued unless all the court fees have been paid. Once the service of the subpoena has been effected, the third party must attend court. Failure to do so amounts to contempt of court. 

The approach to discovery differs from state to state in Nigeria. In Lagos, a party seeking discovery of documents must do so within seven days of the close of pleadings and the party from whom discovery is sought must produce the requested documents within seven days of the request or at such other time as the judge may permit. Parties are generally required to obtain discovery relevant to the issues in dispute, and the parties on whom such request for disclosure is served are required to make the necessary disclosure.

The exceptions to disclosure include the following:

• a person cannot be compelled to produce any document that another person would be entitled to refuse to produce if the document was in their possession;
• a public officer cannot be compelled to disclose communications (oral or written) made to the officer in official confidence if they believe this is against public interest (such communication may be given to the judge in chambers);
• the court cannot compel the disclosure of information covered by attorney-client privilege;
• a court will not compel the disclosure of communication between spouses during their marriage;
• a statement in any document marked “without prejudice” made during settlement of a dispute out of court is protected from disclosure and is inadmissible in court; and
• classified matters under the Official Secrets Act, 2011 are not to be disclosed to the public, as such disclosure would be prejudicial to the security of Nigeria.

The Nigerian legal system provides for discovery mechanisms.

Attorney-client privilege is statutorily recognised. In law, a legal practitioner must not disclose any communication made to them by or on behalf of their client in the course of the practitioner’s employment except where:

• the client has expressly consented;
• the communication was made in furtherance of an illegal purpose; and
• the legal practitioner discovers that crime or fraud has been committed.

This legal privilege continues to subsist after employment.

There is a distinction between external and in-house counsel under Nigerian law. An in-house counsel cannot:

• appear in court for their employer except where they are employed by the government; or
• sign pleadings, instruments, agreements, legal opinions, or file the same for their employer.

In-house counsel typically liaises with external counsel, who will represent their employers in court. 

See 5.3 Discovery in This Jurisdiction.

The types of injunctions available include interim, interlocutory, mandatory, Mareva, Anton Piller, and perpetual injunctions.

Interim and Interlocutory Injunctions

Interim and interlocutory injunctions are granted to preserve the subject matter of the suit or to prevent serious or irreparable damage. While interim injunctions are made ex parte on an urgent basis pending the hearing and determination of a motion on notice for order(s) of interlocutory injunction, orders of interlocutory injunction are made on notice pending the hearing and determination of the substantive suit. Interim and interlocutory injunctions are granted where:

• a legal right or interest is to be protected;
• there are serious triable issues;
• the balance of convenience is in favour of the applicant;
• damages are not an adequate remedy; and
• the applicant gives an undertaking as to damages.

Orders freezing assets or preventing parallel proceedings may be granted through interim or interlocutory motions.

Mandatory Injunctions

Mandatory injunctions are granted to compel a party to take a specific action and where damages will not be an adequate remedy. Mandatory injunctions are also granted to undo a defiant act that has already been committed to overreach the applicant and the court.

Mareva Injunctions

Mareva injunctions are granted to restrain a party from removing assets from the jurisdiction of the court, which might otherwise have been able to satisfy a judgment. Before granting a Mareva injunction, the court must be satisfied that:

• the applicant has a good and arguable case;
• the assets of the defendant are within the jurisdiction; and
• there is a risk of the assets being dissipated or removed before judgment.

Anton Piller Injunctions

Anton Piller injunctions are granted to prevent a party from destroying or removing evidence. The applicant must show a real risk of destruction or removal of evidence before the granting of such an injunction.

Perpetual Injunctions

Perpetual injunctions are permanent orders granted at the conclusion of a suit, preventing a party from engaging in certain activities indefinitely. They are granted after a claimant has proved their case before the court.

Interim injunction orders are granted on an urgent basis to prevent irreparable damage. They may be obtained quickly where there is real urgency. Applications for such injunctions are made ex parte (without putting the other party on notice) due to the real urgency involved, which must be demonstrated in the application.

An interim injunction can be obtained from the court within seven days from the date of filing the application for the same. The steps to be taken are to file an ex parte motion and ensure that the case is assigned to a judge and that the application is fixed for hearing. Thereafter, the application is heard and determined by the court. 

There are no arrangements for out-of-hours judges in Nigeria. However, the rules of the courts make provisions for vacation judges to handle cases and applications of real urgency during court vacations.

Injunctive relief can be obtained ex parte in the absence of the respondent.

An applicant may be held liable for damages suffered by the respondent if the injunction is subsequently discharged. In the affidavit supporting the application for an injunction, the applicant must undertake to pay damages to the respondent in the event that the injunction is granted in error. This also applies to ex parte applications for interim injunctions. 

Injunctive relief may be granted against assets outside the jurisdiction of the court. 

Injunctive relief can only be obtained against a named party. The courts do not grant injunctions against third parties. 

In the case of non-compliance, a respondent may be liable for contempt of court which may lead to the imposition of a fine or imprisonment. The respondent may also be denied right of audience in court until they have complied with the injunction order. 

In Nigeria, trials are usually conducted through oral examination of the witnesses, although parties are usually required to front-load their witness evidence (through witness statements on oath) alongside their pleadings at the commencement of a suit and points of exchange of pleadings. Accordingly, the witness is led by counsel to adopt their witness statement on oath as their evidence-in-chief. However, cross-examinations and re-examinations are done orally.

Trials begin with the examination-in-chief of the claimant’s witness. During this stage, the witness adopts their witness statement on oath. If the claimant wishes to introduce documents as evidence, these documents are tendered through the witness at this point.

Following this, the defendant’s counsel cross-examines the witness. The aim of cross-examination is typically to challenge the credibility of the witness and to advance the defendant’s case. After cross-examination, the claimant may re-examine the witness to address any ambiguities or issues that may arise during cross-examination.

This process of examination-in-chief, cross-examination and re-examination is repeated for each of the claimant’s witnesses until the claimant closes their case. The same procedure is followed in respect of the defendant’s witnesses.

When documents are being tendered through a witness, the opposing party may raise objections to the admissibility of such documents orally and this would involve oral arguments. The court may decide either to deliver a bench ruling on such objections or to adjourn to another date for ruling. Expert evidence may also be given orally or through documents.

Interim motions or applications are always in writing and may either be made ex parte or on notice. These applications are to be accompanied by an affidavit and written address. For ex parte applications, only the applicant is heard.

Once an application has been served on the respondent, they may respond to the application by filing a counter-affidavit and written address. The applicant may also file a further affidavit and reply on points of law to address new issues.

At the hearing, the parties adopt the processes filed by them and may be allowed to adumbrate on the processes. However, in making oral arguments, the parties are not allowed to go outside the processes filed. After hearing the parties, the court will determine the application.

The procedure for case management hearings differs in various states in Nigeria. In Lagos, the case management conference (CMC) begins 14 days after the close of pleadings. Within the prescribed period of the CMC, the parties are required to file the issues in dispute, which will be narrowed down to the points of dispute at the CMC. The court will also draw up a scheduling order to include the joinder of the other parties, amendment of pleadings and filing of motions. The CMC is to be completed within three months of commencement, although the period may be extended.

Jury trials are not available in Nigeria.

For a court to receive a document in evidence, it must fulfil three important and conjunctive conditions. The document must be: (i) pleaded; (ii) relevant to the inquiry being tried by the court; and (iii) admissible. 

Expert testimony is permitted at trial. Parties may introduce expert testimony if such testimony would be beneficial to their case. The court itself can on its own seek expert testimony or request that parties provide an expert if it will substantially affect justice not to do so. However, the court is not bound to accept the evidence of an expert. The evidence of an expert may be given orally or through a document.

As stated previously, the court or tribunal proceedings are open to the public with a few exceptions. The transcripts of hearings are regarded as public documents, and as such, people can request to inspect them and obtain certified true copies.

In Nigeria, the judge’s role is to uphold the principles of a fair hearing. The delicate role played by a judge in the Nigerian adversarial system of justice demands that the judge must be, and must be seen to be, impartial at all times. A judge must not descend into the arena of the dispute to the extent that it appears as though they are digging for evidence or they are giving or leading evidence in court.

Judgments are not delivered on the date of the hearing and are usually reserved for or adjourned to a later date. Under the Constitution of the Federal Republic of Nigeria, 1999 (as amended) (the “Constitution”), superior courts must deliver written judgments with reasons within 90 days of the conclusion of the hearing. A judgment delivered outside the 90-day period may not be valid. 

In Nigeria, there is no general timeframe for cases as this is dependent on the rules of courts which differ from state to state, the congestion of the courts’ dockets, the complexity of the case, the number of interlocutory applications and the diligence of the lawyers.  A commercial suit may take up to three years before judgment is delivered. 

For matters commenced under the fast-track procedure (available in some states and for specific cases), the typical timeline from commencement to resolution is usually between nine to twelve months.

Court approval is not required to settle a lawsuit. However, parties may apply to the court for the terms of settlement to be entered as a consent judgment. This will prevent parties from re-litigating the facts settled in the consent judgment. Additionally, the parties cannot appeal a consent judgment without leave of the court.

Settlement of a suit can remain confidential where the settlement agreement is not entered as a consent judgment. However, where the court enters the terms of the settlement as a consent judgment, this becomes a public document. To maintain confidentiality, parties can choose not to file the settlement terms in court. Instead, the claimant may apply to withdraw/discontinue the lawsuit, and the court would strike out or dismiss the suit. In that case, the settlement agreement cannot be enforced as a judgment of the court.

When a settlement agreement/term of settlement becomes a consent judgment, it is enforceable like any other court judgment. The judgment creditor may apply for enforcement of the judgment by garnishee proceedings, writ of fieri facias, judgment summons or writ of sequestration pursuant to the Sheriff and Civil Process Act, 2004 (SCPA).

Where the settlement agreement is not sanctioned and entered as a consent judgment by the court, it can only be enforced as a contract between the parties. The parties will then have to institute an action in court to enforce the settlement agreement.

An action will be filed in court seeking to set aside a settlement agreement. This will be the situation where the settlement agreement is yet to be sanctioned by the court. The grounds on which the court sets aside the settlement agreement include fraud or fraudulent misrepresentation, mistake, or any other vitiating element which affords a ground for setting aside an agreement. The court will apply the same grounds where a settlement agreement has been entered as a consent judgment of the court. An appeal against a consent judgment must be with leave of the court.

The remedies available to a successful litigant are based on the nature of the litigation and the claims sought from the court. The remedies available to a litigant include the following:

• Damages are monetary compensation awarded by the court to a claimant/plaintiff for a wrongful act caused by the defendant.
• A declaratory relief is a remedy of the court that clarifies and declares the rights and obligations of the parties in a dispute.
• A specific performance is an equitable remedy that compels a party to fulfil their contractual obligations. A specific performance is generally granted where damages would not be an adequate remedy to the claimant/plaintiff.
• Injunctions are orders of the court restraining the commission or continuance of a wrongful act or mandating the doing of an act.

For special damages to be granted by the court, this must be specifically pleaded and particularised to properly apprise the opposing party of the case being made against them. Special damages must be proved. 

Punitive damages are available and awarded by the courts to punish a defendant for malicious conduct and to deter the defendant. Punitive damages are also regarded as exemplary damages.

There are no fixed limits on the maximum damages because the true measure of damages may not be ascertained. The courts generally aim to award an amount of money as damages which they consider to be sufficient to restore the aggrieved party to its original position. However, the courts cannot award damages exceeding the amount claimed by a claimant.

A successful party may be awarded pre-judgment and post-judgment interests if the same is claimed by the party.

Pre-judgment interest is generally granted where a party establishes its existence during a trial through the (a) agreement of the parties; (b) existence of trade custom; or (c) under a principle of equity such as a breach of fiduciary relationship.

For post-judgment interest, no evidence is required. The rules of courts empower courts to award post-judgment interest, and this is discretionary. Some rules of courts set a maximum of 10% for post-judgment interest.

The following mechanisms are available for the enforcement of judgments:

• garnishee proceedings;
• writ of fieri facias;
• judgment summons;
• writ of sequestration;
• writ of possession; and
• warrant of possession. 

Garnishee proceedings are instituted by the judgment creditor to attach debts which a third party owes to the judgment debtor, in satisfaction of the judgment debt. This mechanism is commonly used to attach monies held by the judgment debtor in the bank, and the bank (garnishee) is then ordered to pay those monies to the judgment creditor.

A writ of fieri facias is an order directing a sheriff or deputy sheriff to seize and sell a judgment debtor’s property to satisfy a judgment debt.

Judgment summons involve requiring a judgment debtor to appear in court to be examined on oath as to their means. Where the judgment debtor has the means but refuses to pay, the court may order imprisonment or seizure of assets.

A writ of sequestration directs persons appointed by the court to enter the judgment debtor’s immovable property, collect rents and profits thereof in satisfaction of the judgment debt, and/or seize and detain the movable properties of the judgment debtor until they obey the judgment.

Judgments for recovery of land or delivery of possession are enforceable by writ of possession; however, a warrant of possession is applicable in relation to landlord-tenant disputes.

A foreign judgment can be registered and enforced in Nigeria either by an action in common law or under statutes such as the Reciprocal Enforcement of Foreign Judgments Ordinance, 1922 (the “Ordinance”) and the Foreign Judgments (Reciprocal Enforcement) Act, 1961 (the “Act”). The Ordinance applies to judgments obtained from courts in Commonwealth countries such as the United Kingdom and Northern Ireland, while the Act applies to judgments obtained from courts in countries to which the Nigerian minister of justice has, by an order, extended the benefits of the Act. No such order has, to date, been made.

A foreign judgment creditor may elect to enforce a foreign judgment by an action in common law by claiming the reliefs granted to them by the foreign country. The creditor simply needs to apply for summary judgment or the undefended list procedure.

To register a foreign judgment under the Ordinance and the Act, a petition and originating motion respectively must be filed by the judgment creditor, alongside an affidavit and written address. The judgment debtor has a right to respond to the processes of the judgment creditor.

If the High Court is satisfied that none of the grounds upon which it may refuse to register the foreign judgment under the Ordinance/Act is present, it may register the foreign judgment as its own judgment. Once registered, and in the absence of any application to set aside the registration, the judgment creditor can proceed with enforcement using the available enforcement mechanisms, such as garnishee proceedings. 

The levels of appeal available to a litigant depend on the court in which the suit was instituted and the court’s level in the hierarchy of courts.

An appeal from a magistrate’s court can lie to the High Court of a state. Appeals from the Federal High Court, High Court of a state, and other courts of co-ordinate jurisdiction lie to the Court of Appeal, while appeals from the Court of Appeal lie to the Supreme Court of Nigeria which serves as the final court.  However, the Court of Appeal is the final appellate court for civil matters arising from the National Industrial Court.

Another mechanism of review available is judicial review – for example, a writ of certiorari (setting aside proceedings), mandamus (compelling the performance of an action), and prohibition (issued by a high court to prevent inferior courts from acting beyond their jurisdiction).

A party may appeal against an interlocutory ruling or final decision of the court either as of right or with leave of the court within specific timeframes defined by law. The matters or issues under which an appeal can lie as of right are provided for in the Constitution, and they differ within the appellate hierarchy.

Where an appeal can only lie with leave of the court, leave must first be sought and obtained before filing the appeal. Otherwise, such an appeal would be invalid and incompetent.

An appeal may be allowed and granted by an appellate court where:

• the lower court made an error of law or fact;
• the lower court failed to exercise its discretion properly;
• the lower court failed to follow due process of law;
• the lower court drew an incorrect conclusion from the accepted evidence or did not properly evaluate the evidence; and/or
• the lower court’s findings are perverse.

The procedure for appealing is by filing a notice of appeal in the registry of the court that gave the judgment. As noted previously, an appellant may have to seek leave of court in some cases before instituting an appeal.

Civil appeals to the Court of Appeal and Supreme Court of Nigeria must be filed within three months from the delivery of the judgment, and interlocutory appeals within 14 days of the delivery of the ruling. Criminal appeals must be filed within: (i) 90 days in respect of appeals to the Court of Appeal; and (ii) 30 days in respect of appeals to the Supreme Court of Nigeria.

Upon filing a notice of appeal, the registrar of the court below has 60 days to compile and transmit records to the Court of Appeal. If the registrar fails to do so, the appellant may compile and transmit the records within 30 days of the failure of the registrar to send the records to the Court of Appeal. If the respondent is dissatisfied with the records, the respondent can compile and transmit a supplementary record. 

The time limits for filing appeals may be extended by the appellate court upon an application made by the appellant, provided that the appellant shows good and substantial reasons for failing to appeal within the prescribed period. The triggering event is the date of delivery of the ruling or judgment by the court.

The issues to be considered on appeal are the issues formulated by the parties from the grounds of appeals distilled in the notice of appeal filed in the court.  Those issues will generally arise from the judgment appealed against. By law, appeals in Nigeria are by way of rehearing. Hence, the appellate court must rehear and accord a second consideration to the judgment and proceedings of the lower court to such extent as the grounds of appeal demand.

An appellate court would not consider new points on appeal unless leave is sought and obtained by the party raising the new points. For such leave to be granted, the following must be proved: (i) the new points must relate to substantial points of law, whether substantive or procedural, which need to be allowed to prevent a miscarriage of justice; and (ii) the new points do not need further or additional evidence. 

The court cannot impose any conditions on granting an appeal. On hearing an appeal, the court may either grant in whole or in part the relief(s) sought in the appeal or refuse the same.

The appellate court has the power of the trial court and can make an order that is appropriate in the appeal. After hearing an appeal, the appellate court has the powers to:

• allow the appeal and set aside the decision of the lower court;
• order a re-trial or rehearing of the suit;
• direct the lower court to consider issues raised by the parties in the suit which the lower court did not consider in its decision;
• make an order that the lower court should have made where there are sufficient facts on the record to support same; or
• dismiss the appeal. 

Generally, each party bears the costs of litigation. However, a party may claim, and the court may make an award as to costs. The expenses in respect of which costs may be awarded include:

• the cost of legal representation and assistance of the successful party as determined by the court to be reasonable; and
• travel and other expenses of parties and witnesses to the extent that the judge determines to be reasonable.

Costs are awarded at the discretion of the court, which must be exercised judiciously. Although a successful party is generally entitled to be indemnified for the expenses necessarily incurred and compensated for their time and effort in coming to court, they cannot lay any claim to costs unless the court has made an order to that effect. In addition, the courts must not award costs in a bid to punish the unsuccessful litigant who sought redress in court.

Orders as to costs may be appealed to an appellate court.

A court in awarding costs often considers facts such as out-of-pocket expenses of the successful party, the duration of the case, the number of appearances by the parties and their counsel, the number of witnesses called by the successful party, unnecessary delays in proceedings, the cost of legal representation, and the value and purchasing power of the currency of the award at the time of the award, among others. 

There is no legal requirement for the award of interest on costs. Costs become immediately payable when ordered.

ADR is viewed positively and highly promoted in Nigeria and has been integrated by law into Nigeria’s dispute resolution system. The Rules of Professional Conduct for Legal Practitioners, 2023, mandates lawyers to inform their clients of the ADR mechanisms available to them before resorting to litigation. Further, in many states in Nigeria, pre-trial or case management conferences are mandatory before trial. One of the objectives of such conferences is to promote amicable resolution of the dispute. 

The referral of a case to the relevant ADR bodies for alternative resolution where possible, is usually listed as an agenda of such pre-trial or case management conferences. Also, courts in Nigeria have ADR centres to which disputes are referred for amicable resolution. 

The most popular ADR methods in Nigeria are negotiation, mediation and arbitration.

The Nigerian legal system promotes ADR as a dispute resolution mechanism. Lawyers are required to inform their clients about the option of ADR mechanisms before resorting to litigation. Most rules of the courts require parties to attempt settlement before filing a lawsuit, and failure to comply with this requirement might lead to the striking out of the suit. In addition, most court rules include pre-trial conferences, with an agenda to refer cases to ADR for settlement.

Under the law, where there is an arbitration agreement between the parties and one party institutes an action in court, the court has the power to order a stay of proceedings and refer the matter to arbitration. Under Nigerian law, the finality of arbitral awards is recognised and they can only be set aside on exceptional grounds set out by the law.

Institutions promoting and offering ADR in Nigeria are well organised and play a significant role in integrating ADR into the legal landscape. Examples of such institutions are the Chartered Institute of Arbitrators, UK (Nigeria); the Nigerian Institute of Chartered Arbitrators; and the International Chamber of Commerce’s International Court of Arbitration. Different states have highly functional multidoor courthouses where cases are referred for ADR processes.

Arbitration in Nigeria is primarily regulated by the AMA. Other state laws, such as the Lagos Arbitration Law, 2009, the Lagos Multidoor Courthouse Law, 2007 and laws establishing multidoor courthouses across the country also apply.

Both domestic and foreign arbitral awards are recognised and enforceable in Nigeria (AMA, Section 57(1)). An award-creditor may initiate proceedings for the court to recognise and enforce an award by filing an originating motion, supported by an affidavit exhibiting the original/certified copy of the award, the original/certified copy of the arbitration agreement, and where either the award or arbitration agreement is not made in the English language, a certified translation into the English language will be required (AMA, Section 57(2)).

A court may only refuse an application to recognise and enforce an award where:

• a party to the arbitration agreement was under some legal incapacity;
• the arbitration agreement is invalid under the law of the country where the award was made;
• the party against whom the award was made was not given proper notice of the arbitration proceedings or was not able to present their case;
• the award deals with a dispute that does not fall within the terms of submission to arbitration;
• the award contains decisions on matters which are beyond the scope of submission to arbitration;
• the composition of the arbitral tribunal was not in accordance with –
1. the agreement of the parties; or
2. the law of the country where the arbitration took place, in the absence of an agreement;
• the award has not become binding on the parties or has been suspended or set aside by a court with competent jurisdiction;
• the subject matter of the dispute cannot be settled by arbitration under Nigerian law; or
• the award is against public policy (AMA, Section 58(2)).

The following matters cannot be referred to arbitration in Nigeria:

• criminal cases;
• matrimonial cases;
• tax disputes;
• election-related matters; and
• a declaration of title to land.

A party may challenge an award where:

• a party to the arbitration agreement was under legal incapacity;
• the arbitration agreement is invalid under the law of the country where the award was made;
• the party against whom the award was made was not given proper notice of the arbitration proceedings or was not able to present their case;
• the award deals with a dispute that does not fall within the terms of submission to arbitration;
• the award contains decisions on matters which are beyond the scope of the submission to arbitration;
• the composition of the arbitral tribunal was not in accordance with the –
1. agreement of the parties; or
2. AMA, in the absence of an agreement;
• the subject matter of the dispute cannot be settled by arbitration under Nigerian law; or
• the award is against public policy (AMA, Section 55(3)).

An application to challenge or set aside an award must be made within three months from the date the applicant received the award.

Domestic Arbitral Awards

An award creditor must first seek and obtain an order of the court recognising the award before the award creditor can proceed with the enforcement of the same. Once recognised by the court, a registered arbitral award may be enforced in the same manner as a judgment of the court. Hence, the award creditor may apply for enforcement of the award by garnishee proceedings, writ of fieri facias or judgment summons.

Foreign Arbitral Awards

For the enforcement of an award made outside Nigeria, the New York Convention on the Recognition and Enforcement of Foreign Awards will apply, provided that the country where the award was made is a party to the New York Convention and any differences which arise are of a commercial nature. Where the award is from the International Centre for Settlement of Investment Disputes, the award will be enforced in Nigeria as if it were a judgment of the Supreme Court of Nigeria.

There are currently no proposals for dispute resolution reform in Nigeria. The current statute on mediation and arbitration was made in 2023.

A key area of growth for commercial disputes in Nigeria is the enhancement of ADR mechanisms, particularly through the recent enactment of the AMA. ADR methods have been increasingly favoured due to their efficiency, speed and less formal nature, compared to traditional court proceedings.

Among other things, the AMA introduced more precise grounds for challenging an arbitral award and abolished “error on the face of an award” as a ground for setting aside an award. These innovations serve as an encouragement to parties in the adoption of ADR in settling commercial disputes.

Innovations in commercial disputes have also centred around the integration of technology into dispute resolution processes. The Nigerian courts have increasingly adopted technology practices such as e-filing, electronic evidence, electronic service and virtual hearings, which speed up the process and enhance accessibility.