9th July 2025
Court of Appeal Reinforces the Effectiveness of Choice of Foreign Law and Jurisdiction Clauses in Contracts
In Sqimnga (Nig) Ltd v. SAP (Nig) Ltd, the Nigerian Court of Appeal reaffirmed the enforceability of foreign law and jurisdiction clauses in commercial contracts. The decision confirms that Nigerian courts will generally uphold parties’ contractual choices, unless compelling reasons dictate otherwise, thereby reinforcing the principle of party autonomy.
In this article, TEMPLARS Partner, Emmanuel Gbahabo, and Managing Counsel, Orji Uka, examine the case involving a Master Service Agreement governed by South African law, with disputes subject to South African courts. Both the High Court and the Court of Appeal upheld these clauses, emphasising the courts’ respect for clear and lawful agreements.
This judgment offers timely clarity on the Nigerian legal position, correcting longstanding misconceptions stemming from The Nordwind and strengthening legal certainty in cross-border transactions.
