By Imisioluwa Afunmiso
The National Industrial Court (NIC), Lagos Division, has ruled that Pan African Towers Limited (PAT) cannot rely on an arbitration clause to challenge the court’s jurisdiction after failing to participate in the dispute resolution process agreed with its former Managing Director and Chief Executive Officer, Mr Azeez Amida.
Justice Essien, in a ruling delivered on July 21 in Suit No. NICN/LA/143/2025, dismissed the company’s Notice of Preliminary Objection for lacking merit and awarded N500,000 costs against PAT.
The court held that although the parties’ Mutual Separation Agreement required negotiation, mediation and arbitration before litigation, the company could not invoke those provisions after allegedly frustrating attempts to resolve the dispute through the agreed mechanism.
According to the ruling, Mr Amida had, through his solicitors, initiated correspondence and formal demands aimed at resolving the dispute in line with the agreement before commencing legal action.
The claimant’s legal team also presented evidence, including correspondence allegedly sent to Pan African Towers and its representatives, to demonstrate efforts to activate the contractual dispute resolution process.
Justice Essien held that the company’s failure to meaningfully engage in those efforts was inconsistent with its subsequent reliance on the arbitration clause to challenge the court’s jurisdiction.
The judge ruled that PAT had waived its right to insist on arbitration after frustrating the agreed process and consequently dismissed the preliminary objection.
The ruling clears the way for the substantive hearing of Mr Amida’s suit, in which he is seeking payment of alleged outstanding contractual entitlements under the parties’ Mutual Separation Agreement.
The court adjourned the matter until January 12, 2027, for hearing.
The employment dispute is separate from ongoing proceedings before the Federal High Court involving Mr Amida, Development Partners International, Verod Capital Management and other parties over issues relating to the ownership of Pan African Towers.
Reacting to the decision, counsel to Mr Amida said the ruling reinforces the principle that a party cannot frustrate an agreed dispute resolution process and later seek to rely on it to prevent a claim from being heard.
The legal team added that while Pan African Towers remains entitled to pursue any appellate remedies available under Nigerian law, it is prepared to proceed with the substantive hearing scheduled for January 2027.