Court

THE POWER OF A NIGERIAN COURT TO SET ASIDE A FOREIGN ARBITRAL AWARD: AN ANALYSIS OF THE CASE OF LIMAK V. SAHELIAN ENERGY

The Limak v. Sahelian Energy decision marks a troubling deviation from internationally recognized arbitration norms, thereby undermining the principle that only the courts of the seat of arbitration or the jurisdiction under whose law the award was made have authority to annul an award. By setting aside a foreign-seated award, the Nigerian courts exceeded their jurisdiction and risked creating legal uncertainty. This has a strong tendencyto deter investor confidence.

The Doctrine of Frustration and Its Applicability in Nigeria

The doctrine of frustration of contract was described in the case of Diamond Bank Ltd V. Ugochukwu (2008) LPELR-8093 (CA) where the Court said “Frustration would occur where it is established to the satisfaction of the Court that due to a subsequent change in circumstances which was clearly not in the contemplation of the parties, the contract has become impossible to perform.

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