The Court of Appeal (Nigeria) in Abuja has struck out a suit seeking ₦400 million and £159,098 in alleged legal fees and expenses against Ned Nwoko Solicitors concerning a foreign-debt-recovery contract with the Oyo State Government.
The dispute began when Femi Kehinde of Femi Kehinde & Co. sued the solicitors, along with Lillian Ngozichukwu Nwoko, Chinedu Munir Nwoko, and Lina’s International Limited, claiming they were owed fees for work they say was performed on a contract with the state government to recover foreign debt.
However, the Court of Appeal found that the matter falls under the category of a simple contract, an agreement for the provision of goods or services for payment, and thus lies outside the jurisdiction of the Federal High Court of Nigeria. The trial court had earlier assumed jurisdiction, but the appellate court held that such disputes should properly be heard in a State High Court.
In its judgment, Justice Abba Bello Mohammed, delivering a unanimous decision, reaffirmed the legal principle that no matter how well conducted a trial may be, it is a nullity if the court lacks jurisdiction. He went on to allow the appeal by Nwoko’s firm, overturning the earlier decision of Justice Binta Nyako, rendered on July 15, 2022, which had rejected the preliminary objection.
According to court documents, Kehinde sought the ₦400 million (representing 40% of what he alleged was a ₦1 billion first tranche payment to Nwoko’s firm) plus £159,098 to cover expenses incurred in pursuing an arbitration in London tied to the same engagement.
The dismissal of this high-value claim removes potential financial uncertainty for the legal firm and underscores the importance of court-jurisdiction clarity in contract disputes, a factor that safeguards professional service providers and contributes to smoother business operations, thereby supporting investor confidence and legal market stability in Nigeria’s economy.
