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Enforcing Judgments of Foreign Courts in Nigeria: Procedure, Limitations and Prospects

Lawbreed LimitedBy No Comments10 Mins Read
O M ATOYEBI

INTRODUCTION

In an era of increasing global and cross-border transactions, disputes often arise between parties from different jurisdictions.[1] Consequently, litigants frequently obtain judgments from foreign courts, which they may wish to enforce in Nigeria.[2] The enforceability of such foreign judgments is critical for upholding contractual obligations, enhancing commercial certainty, and promoting investor confidence.[3] As a general principle of law, before a judgment can be enforced in Nigeria, and perhaps in countries of the world operating the dual principle of registration and enforcement of judgment, it must first be registered. However, the converse is not the case, as certain judgments may be registrable yet unenforceable. The process of enforcing foreign judgments in Nigeria is governed by specific statutory and judicial mechanisms that present both opportunities and limitations.

The article examines the rules governing the recognition and enforcement of foreign judgments in Nigerian courts. It begins by explaining the legal foundation, particularly the ‘Foreign Judgments (Reciprocal Enforcement) Act’ and relevant case laws. The article outlines the procedural steps required to register a foreign judgment, the distinction between common law and statutory routes, and the conditions under which enforcement may be refused, such as lack of reciprocity, public policy concerns, or breach of natural justice. The article also explores the challenges faced by judgment creditors and suggests legal and procedural reforms to promote judicial cooperation and certainty in cross-border commercial relationships.

ENFORCEMENT OF FOREIGN JUDGMENTS IN NIGERIAN COURT

A foreign judgment is a decision made by a court in one country that a court in another country recognises and may enforce.[4] Essentially, it is a court ruling from a foreign jurisdiction that is seeking recognition or enforcement in a different legal system.[5] Recognition and enforcement of foreign judgments refer to the legal process of acknowledging and enforcing court decisions made in a different country. This aspect of the legal system is essential for maintaining the integrity of international law and ensuring justice is upheld across borders.[6] In enforcing legal judgments, it is important to understand the legal requirements and procedures involved. The foreign judgment sought to be enforced must be submitted to meet certain criteria for such enforcement. This includes proving that the judgment was issued by a court with jurisdiction and that the parties involved were given a fair opportunity to present their case. In cases where a foreign judgment is recognised and enforced, it can have significant implications for the parties involved.

APPLICABLE LAWS ON REGISTRATION AND ENFORCEMENT OF FOREIGN JUDGMENTS IN NIGERIA

The two main statutes on registration and enforcement of foreign judgments in Nigeria are:[7]

  1. The Reciprocal Enforcement of Judgment Act 1922 Cap 175 Laws of the Federation and Lagos 1958: The Reciprocal Enforcement of Judgments Act (Cap.175 of 1958) hereinafter referred to as the 1958 Ordinance was promulgated to facilitate the reciprocal enforcement of Judgments obtained in Nigeria and the United Kingdom and other territories under her majesty’s protection not having been repealed by the 1990 Act.[8] The Ordinance was enacted during the colonial era and was not repealed upon the enactment of the Act in 1961.
  2. The Foreign Judgment (Reciprocal Enforcement) Cap 152 Laws of the Federation 1990 Act Cap F35 of the Revised Laws of the Federation 2004:[9] Foreign Judgments (Reciprocal Enforcement) Act (Cap. 152 of 1990) hereinafter referred to as the 1990 Act applies to judgments of the courts of Commonwealth countries and other foreign countries. The Act did not specifically repeal the 1958 Ordinance. This means that it still applies to the United Kingdom and to other parts of Her Majesty’s dominions to which it was extended by proclamation under section 5 of the Ordinance before the coming into force of the 1990 Act. Section 3 of the 1990 Act empowers the Minister of Justice of the Federation of Nigeria to extend the application of Part 1 of that Act with regard to the registration and enforcement of foreign judgments of superior Courts, to any foreign country, including United Kingdom if he is satisfied that the judgments of our superior Courts will be accorded similar or substantial reciprocity in those foreign countries. Once an order is made under Section 3 of the 1990 Act, in respect of any part of Her Majesty’s dominions to which the 1958 Ordinance earlier applied, the latter ceases to apply as from the date of the order.[10]

PROCEDURES FOR THE ENFORCEMENT OF FOREIGN JUDGMENTS IN NIGERIA

Enforcement of foreign judgments can be carried out in two ways in Nigeria. Either by way of: a) Reciprocity, or b) by “Action at Common Law”. However, to be able to adopt either of the two modes, the following conditions must be met:

  1. The Judgment must have been delivered by a superior court.
  2. It must be a final, certain and conclusive judgment;
  3. It can also be enforced in a superior court of record in Nigeria.
  4. The Judgment must have been delivered within six (6) years of the application for enforcement; and
  5. There must be payable thereunder a sum of money, but not a tax, fine or penalty.[11]
  6. Reciprocity: This process is carried out by registration of the foreign judgment in any superior court in Nigeria, provided that there is reciprocity of laws in the country of the foreign judgment creditor, providing Nigerian litigants same opportunities for the enforcement of judgments procured in Nigeria. The judgment creditor can apply to a superior court in Nigeria to have the judgment registered, which will invariably give it the status of a judgment of such a Nigerian Court, thereby allowing the foreign Judgment creditor to proceed to enforce it in Nigeria as if it were a judgment of that court. If the judgment is an order to pay a sum in foreign currency, such sum shall be paid in local currency at the prevailing rate as at the time the foreign judgment was procured.[12]
  7. Action at Common Law: This is simply used by judgment creditors from non-Commonwealth countries or from Commonwealth countries that have no reciprocal enforcement of judgment laws. For the enforcement of judgment by way of Action at Common law, the judgment must be for a definite sum of money; where it is a subject matter other than money, such subject matter must be situated within the jurisdiction of the court that gave the judgment at the time of delivery of the judgment. The action can be commenced at the High Court of Nigeria using the foreign judgment as the cause of action against the judgment debtor. It is usually instituted under the Summary Judgment proceedings. The foreign Judgment Creditor, alongside his originating process, shall file an application and depose to an affidavit that the Judgment Debtor has no defence to the Claim. If the application is granted, judgment will be entered and execution will follow.

LIMITATIONS AND PROSPECTS OF ENFORCING FOREIGN JUDGMENTS IN NIGERIA

Enforcing foreign judgments in Nigeria has limitations and prospects.[13] The limitations arising from enforcing foreign judgments stem from specific legal frameworks like the Foreign Judgments (Reciprocal Enforcement) Act and the Reciprocal Enforcement of Foreign Judgments Ordinance.[14] These frameworks restrict enforcement based on factors like the foreign court’s jurisdiction, the nature of the judgment and whether reciprocity exists between Nigeria and the judgment-rendering country.[15]

Several legal and practical limitations hinder the seamless enforcement of foreign judgments in Nigeria:

  1. Inchoate Nature of the 1990 Act: Although the Foreign Judgments (Reciprocal Enforcement) Act, 1990 was enacted to replace the 1922 Act and expand coverage, it has not been brought into operation because the Minister of Justice has not issued the requisite order under Section 3(1). Nigerian courts have repeatedly held that the 1990 Act remains unenforceable until activated.
  2. Short Time Limit for Registration: Under the 1922 Act, an application for registration must be brought within 12 months of the judgment, failing which the judgment creditor may lose enforcement rights, subject to limited extensions.
  3. Uncertainty in Reciprocal Recognition: Nigeria’s list of countries with reciprocal arrangements is limited and outdated. Many foreign judgments (especially from the U.S. and non-Commonwealth countries) must be enforced through the slower and more uncertain common law route.
  4. Public Policy Exception: Courts may refuse to enforce judgments contrary to Nigerian public policy, but the scope of what constitutes “public policy” is often ambiguous and discretionary.
  5. Cost and Delay: The cost of litigation and time involved in initiating fresh suits (under common law) or registration applications can be prohibitive, discouraging enforcement by foreign creditors.

PROSPECTS FOR REFORM

There are considerable prospects for improving the legal framework for the enforcement of foreign judgments in Nigeria:

  1. Activating the 1990 Act: Bringing the Foreign Judgments (Reciprocal Enforcement) Act, 1990 into force would: Expand the recognition base to more countries; Extend the registration period from 12 months to 6 years; Reflect modern legal and commercial realities.
  2. Adoption of International Conventions: Nigeria can enhance cross-border judicial cooperation by signing and ratifying conventions like: The Hague Convention on Choice of Court Agreements (2005); The Hague Judgments Convention (2019). These instruments promote mutual recognition and enforcement of court judgments across borders.
  3. Judicial Training and Guidelines: The judiciary should be trained in transnational litigation principles, and courts should issue practice directions to clarify and harmonise procedures on foreign judgment enforcement.
  4. Legislative Review: The National Assembly should initiate a comprehensive review of Nigeria’s private international law rules, including codification of uniform rules for foreign judgment recognition.

CONCLUSION

The enforcement of judgments of foreign courts in Nigeria is essential for the effective administration of justice, foreign investment protection, and international legal cooperation. While Nigeria has laid down mechanisms, statutory and common law for such enforcement, the current regime suffers from outdated laws, procedural complexity, a lack of reciprocity, and inconsistent application.

RECOMMENDATIONS

To improve the enforcement of foreign court judgments in Nigeria, it is recommended that the government immediately activate the Foreign Judgments (Reciprocal Enforcement) Act, 1990, by issuing the necessary ministerial order, thereby expanding the scope of enforceable judgments and extending the registration period to six years. Nigeria should also ratify key international instruments such as the Hague Conventions to promote global judicial cooperation. Furthermore, judicial reforms are needed to clarify procedural rules and ensure consistent application of public policy exceptions, while institutional capacity building and training of judges will enhance the efficiency and reliability of cross-border judgment enforcement.

REFERENCE

  1. Godwin Omoaka, ‘Nigeria Legal Regime for the Enforcement of Foreign Judgments in Nigeria: An Overview’ (2024) https://www.templars-law.com/app/uploads/2015/05/Enforcement-of-Foreign-Judg-GOO.pdf accessed 25th June, 2025. ↑
  2. Ibukun Enigbokan et al, ‘Registration and Enforcement of Foreign Judgments in Nigeria Under the Foreign Judgments (Reciprocal Enforcement) Act, 1990, Cap 152, Laws of the Federation of Nigeria 2004 – A Case for the Inclusion of Non-monetary Foreign Judgments’ (2024) https://practiceguides.chambers.com/practice-guides/enforcement-of-judgments-2024/nigeria/trends-and-developments accessed 25th June, 2025 ↑
  3. George Ukwuoma, ‘ENFORCEMENT OF FOREIGN JUDGMENTS AND ARBITRAL AWARDS IN NIGERIA’ (2021) https://advocaat-law.com/wp-content/uploads/2021/11/05f2f12b52627960a0dae0baec9c234f.pdf accessed 25th June, 2025. ↑
  4. Olufe J. Popoola, ‘Enforcement Of Foreign Judgements In Nigeria’ (2022) https://www.mondaq.com/nigeria/trials-amp-appeals-amp-compensation/1233252/enforcement-of-foreign-judgementsinnigeria#:~:text=by%20Reciprocal%20EnforcementTHROUGH%20ENFORCEMENT%20AT%20COMMON%20LAW,judgement%20given%20against%20such%20person accessed 25th June, 2025. ↑
  5. Ibid. ↑
  6. Adeola Oyinlade , ‘How to Ensure the Smooth Recognition and Enforcement of Foreign Judgments in Nigeria’ (2024) https://www.legal500.com/developments/thought-leadership/how-to-ensure-the-smooth-recognition-and-enforcement-of-foreign-judgments-in-nigeria/ accessed 25th June, 2025. ↑
  7. teleglobe america incorporation v. 21st century techologies ltd (2008) LPELR-5006(CA) (Pp. 22-26 paras. F) ↑
  8. See Macaulay v. R.Z.B Austria (2003) 18 NWLR (Pt. 852) SC 282 ↑
  9. macaulay v. r.z.b osterreich akiengesell schaft of austria (2003) LPELR-1802(SC) (Pp. 5-7 paras. E) ↑
  10. Ibid. ↑
  11. S. 3, Foreign Judgments (Reciprocal Enforcement) Act 1961 Cap C35 Laws of the Federation of Nigeria 2004 ↑
  12. S.4 (3)Foreign Judgments (Reciprocal Enforcement) Act ↑
  13. Chibike Amucheazi,Chidebe Matthew Nwankwo &Fochi Nwodo, ‘A reassessment of the challenges of enforcement of foreign judgments in Nigeria: the need for legislative reform to ease business’ (2024) Vol.20, No.2, Journal of Private International Law 1-11 ↑
  14. Ibid. ↑
  15. Ibid. ↑

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Publishers of Judgments of The Supreme Court of Nigeria (S.C Report) - on the Authority of the Supreme Court of Nigeria

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