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Information Technology

Nigeria

Overview
Including: IP Rights; Regulation of Technology Transfers; Security.

The Central Bank of Nigeria recently awarded a contract to implement IT systems aimed at the detection and prevention of financial crime and money laundering to several foreign companies. However, the award was made despite a lawsuit brought by another bidder, which is seeking to reverse the decision following irregularities in the bidding process.

Litigation

Nigeria

Nigeria’s judicial system and telecommunications industry have come under intense scrutiny from investors after a GSM licence holder became the subject of serial litigation. The crisis, which centres on problematic rule of law and due process questions, threatens to deter investment in Nigeria if it is not resolved quickly.

The Court of Appeal recently considered whether a foreign company which began a joint venture in Nigeria but subsequently pulled out was within the jurisdiction of the Nigerian courts. Rejecting a request for security of costs, the court ruled that the fact that the appellant was served at its address abroad indicated that it had never been within jurisdiction.

In a recent case a Portuguese national employed in Nigeria without a work permit sought payment of salary owed to him. The company claimed that the contract was void due to illegality. The Court of Appeal held that after enjoying the benefits of a purported 'illegal contract', an employer may not avoid its contractual obligations by claiming that the contract is illegal.

Shipping & Transport

Nigeria

The Nigerian Federal Executive Council has relaxed its ban on used car imports, which now applies only to cars more than eight years old, rather than those over five years old as previously. Since the ban’s introduction, shipping companies have lost business and the government has lost revenue in the form of import duties. Cars over five years old make up 90% of Nigeria's car imports.