Facts:

The Applicant entered into a non-exclusive distribution agreement with the Respondent for the purchase and distribution of medical equipment and disposable (the Products) within Nigeria (the Territory). The Agreement was for a fixed period of two years (from 1st January 2021 to 31st December 2022) subject to renewal upon mutual agreement of the parties and it was amended on 13th February 2023 to elapse on 30th April 2023. In accordance with the terms of the Agreement, the Respondent duly supplied the Products to the Applicant. Upon receipt of these deliveries, the Applicant received a series of invoices reflecting the purchase prices of the Products which were paid leaving an outstanding balance of USD 922,512.62.

The Applicant alleged that due to the continuous devaluation of the Nigerian Naira (NGN) and the volatility of the exchange rate, the Applicant encountered financial difficulties which resulted in a delay in making payment for the Products supplied by the Respondent. Despite these challenges the Applicant remained committed to fulfilling its financial obligations and maintaining the long-standing relationship between the parties which has spanned over three decades (with the distribution agreement renewed periodically, the last renewal being the agreement from 1st January 2021 to 31st December 2022). Over this period the Applicant maintained that it has consistently provided valuable services to the Respondent enhancing its market presence and profitability within the Nigeria’s dialysis market where the Applicant holds a strong position.

The Applicant acknowledging her indebtedness, entered into settlement discussions with the Respondent. In the intervening period the Applicant’s alleged that its credit line with the Respondent which has been operational since the inception of the business arrangement between the parties for over three decades was cut off and the Applicant was requested to make pre payments for goods before they were supplied and that the Applicant made pre payments in the amounts of USD38,006, and €24,885.15 (equivalent to USD26,681.86) for goods which were not supplied. This brought the total outstanding debt down to USD857,824.70

As part of the ongoing efforts to settle the debt in good faith and maintain the business relationship the Applicant proposed a series of structured repayment plans which were communicated to the Respondent. While discussions were ongoing, the Respondent surprisingly initiated arbitrations proceedings, on 31st December 2024, the Respondent filed a Request for Arbitration with the Deutsche Institution fur Schiedsgerichtsbarkerit (DIS) the German Institute of Arbitration. The Applicant subsequently received a formal. Request for Arbitrations dated 27th January 2025 from the DIS.

Dissatisfied, the Applicant approached the court to declare the notice of arbitration incompetent.