The Supreme Court of Nigeria has affirmed the November 22, 2024 judgment of the Court of Appeal in Abuja, which upheld an arbitral award against Emerging Markets Telecommunications Services Limited (EMTSL), the company operating as 9Mobile, in favour of two aggrieved investors.
The arbitral award, issued on September 26, 2022, had directed EMTSL to refund the sum of $43,033,950 invested by Afdin Ventures Limited and Dirbia Nigeria Limited, along with interest and costs. With accumulated interest and associated costs, the investors now estimate the total amount owed at about $87,448,929.45.
The apex court, in a unanimous decision delivered by a five-member panel led by Justice Mohammed Garba, dismissed the appeal filed by EMTSL, marked SC/CV/1096/2024, on the grounds that it lacked merit.
In the lead judgment prepared by Justice Tijani Abubakar but read on March 6 by Justice Mohammed Idris, the Supreme Court held that EMTSL could not deny being bound by the arbitration clause contained in the original contract from which the dispute arose, having benefited from the investment made by the two companies.
The court specifically faulted EMTSL’s argument challenging the jurisdiction of the arbitral tribunal on the basis that it was not a signatory to the original contract that contained the arbitration clause. The justices held that the company, having benefited from the funds and the contractual arrangement, could not later reject the arbitration clause tied to the same agreement.
The ruling effectively brings to a close a long-running legal dispute between the telecommunications company and the investors, who had sought a refund of their investment after disagreements arose over the execution of the contract.
Legal analysts say the Supreme Court’s decision reinforces the principle that parties who benefit from a contract cannot avoid obligations arising from that contract, including arbitration clauses. The judgment is also seen as a strong endorsement of arbitration as a legitimate and binding method of resolving commercial disputes in Nigeria.
The case has drawn attention within legal and business circles, particularly among foreign and local investors, as it highlights the importance of contractual obligations and the enforceability of arbitral awards in Nigeria’s legal system.
With the Supreme Court affirming the arbitral award, the investors are now expected to take steps to enforce the judgment and recover the funds as ordered by the tribunal and upheld by both the Court of Appeal and the apex court.
The judgment is considered significant for Nigeria’s business environment, as it sends a message about the sanctity of contracts, the enforceability of arbitration agreements, and the role of the courts in upholding commercial agreements and protecting investors’ rights.
