The Supreme Court of Nigeria has upheld a judgment compelling Emerging Markets Telecommunications Services Limited, operators of 9Mobile, to pay $87.5 million to two investors, bringing to a close a protracted legal dispute over investment returns.
In a unanimous decision delivered by a five-member panel led by Mohammed Garba, the apex court dismissed an appeal filed by the telecom firm, describing it as lacking merit.
The judgment affirmed the earlier ruling of the Court of Appeal, which validated an arbitral award granted in favour of Afdin Ventures Limited and Dirbia Nigeria Limited.
The arbitral award, issued on September 26, 2022, had ordered the telecom company to refund over $43 million invested by the firms, alongside accrued interest and costs, bringing the total liability to about $87.5 million.
Delivering the lead judgment prepared by Tijani Abubakar, and read by Mohammed Idris, the court held that the company could not deny its obligation under the arbitration agreement, having benefited from the investment.
The apex court rejected 9Mobile’s claim that it was not a signatory to the contract containing the arbitration clause, ruling that parties who benefit from contractual agreements are bound by their terms.
It further stressed that arbitration clauses remain enforceable even when contractual rights are transferred, noting that no party can enjoy the benefits of a contract while evading its obligations.
The court also clarified that the doctrine of privity of contract does not apply where there is clear evidence of active involvement and benefit from a transaction.
Describing the appeal as “baseless,” the court not only dismissed it but also awarded ₦10 million in costs against the telecom firm in favour of the investors.
The dispute dates back to 2018 when the investors approached the Federal High Court, alleging exclusion from the management of the company despite their financial contributions.
They also claimed that there were plans to sell the telecom firm, formerly known as Etisalat Nigeria, without their consent.
The case was subsequently referred to arbitration by the trial court, presided over by Justice Binta Nyako, leading to the 2022 award.
Following the award, the investors secured its enforcement in April 2023, a decision that was upheld by the Court of Appeal and now reaffirmed by the Supreme Court.
The ruling underscores the binding nature of arbitration in commercial transactions and reinforces judicial insistence on accountability in Nigeria’s business environment.
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