Facts:

The appellant contracted the respondent for certain projects and contracts were executed in that regard. Each contract had its arbitration agreement where parties agreed on the procedure to be adopted for appointing an arbitrator in the event that dispute arises.

Dispute arose when the appellant failed to pay the outstanding contract sums to the respondent despite several demands. Aggrieved by the appellant’s action, the respondent instituted a suit against the appellant primarily seeking for the payment of N7,939,521.42 (Seven Million, Nine Hundred and Thirty Nine Thousand, Five Hundred and Twenty One Naira, Forty Two Kobo) representing the balance of the contract sums flowing from their agreements. In response, the Appellant filed an application seeking for a stay of proceedings in order that the matter be referred to arbitration as agreed by the parties. The trial court granted appellant’s application for stay of proceedings.

An arbitrator was appointed and subsequently an award was given in favour of the respondent. The respondent filed an application at the lower court seeking for the enforcement of the arbitral award but the appellant objected to it. The lower court in its decision, granted respondent’s application for enforcement of the arbitral award.

Dissatisfied with the decision of the lower court, the appellant appealed to the Court of Appeal.