Commercial Arbitration in Nigeria, as in other jurisdictions, offers businesses and practitioners an alternative to litigation, promising speed, flexibility, and efficiency. However, the process can be challenging. Delays in enforcement, inconsistent court rulings, and lengthy timelines often complicate dispute resolution, leading users to question its value.
The Arbitration and Mediation Act 2023 (AMA) introduces reforms to strengthen arbitration in Nigeria, addressing many of its longstanding challenges. Building on these developments, our “Commercial Arbitration in Nigeria: A Handbook” provides practical strategies to overcome common hurdles, enforce awards, and manage disputes effectively.
This blog post highlights the handbook’s features, showing how it equips businesses and practitioners to approach arbitration in Nigeria with confidence.
The Challenges of Arbitration in Nigeria
Arbitration in Nigeria is often considered a faster, more flexible alternative to litigation, but practical realities can be sobering. Our Analysis of Arbitration-Related Decisions in Nigeria paints a stark picture. Enforcement proceedings frequently span years, with some cases stretching over a decade. At the High Court, enforcement applications take an average of two years, and appeals to the Supreme Court can add up to nine years. Such delays undermine the promise of speed and efficiency.
The data also shows a mixed record for arbitration’s success. Only 31% of domestic cases result in a stay of proceedings favouring arbitration, and 26% of domestic arbitral awards are successfully challenged. These figures point to systemic issues, including inconsistent court rulings, procedural roadblocks, and conflicting interpretations of arbitration laws.
For users of the system, these challenges raise a critical question: how can arbitration in Nigeria deliver real value amid wasted time, high costs, and unpredictable outcomes? The Commercial Arbitration in Nigeria Handbook responds to these issues with strategies designed to address persistent challenges, helping users approach arbitration more clearly and effectively.
Practical Solutions Offered by the Handbook
Many of the frustrations with arbitration in Nigeria stem from avoidable issues: unclear agreements, procedural delays, and enforcement challenges. The Handbook on Commercial Arbitration in Nigeria addresses these pain points directly, providing actionable guidance to help businesses and practitioners navigate the process more effectively.
a. Tackling Common Issues in Arbitration Agreements
A poorly drafted arbitration agreement can lead to costly disputes over interpretation. The handbook provides a checklist for drafting agreements with binding terms. It highlights the importance of choosing precise language, avoiding ambiguous clauses, and selecting a reliable arbitration seat. Case studies show how minor oversights, such as discretionary terms, have led to unenforceable provisions. The handbook explains how to avoid these errors and draft agreements that protect your interests from the start.
b. Addressing Delays in Enforcement
Delays in enforcing awards remain one of the biggest obstacles in Nigerian arbitration. The handbook focuses on actionable steps to reduce waiting times. It suggests streamlining documents before filing, using State-specific laws like the Delta State Arbitration Law 2022 to expedite enforcement, and preparing for common objections. The Quick Reference Chart simplifies court intervention rules, showing when and how to seek judicial support without wasting time.
c. Managing Multi-Party Disputes
Multi-party disputes often create procedural hurdles, such as appointing arbitrators or coordinating between contracts. The handbook outlines practical solutions, including drafting clauses for consolidation and joinder to unify proceedings and prevent conflicting decisions. It also examines the provisions of the AMA that address multi-party cases, making it easier to manage disputes with several stakeholders.
d. Global Enforcement
For businesses operating across borders, the enforceability of awards is a priority. The handbook guides on meeting the requirements of the New York Convention to make awards enforceable in over 170 jurisdictions. It explains how to prepare the necessary documentation and avoid procedural missteps that could delay enforcement in Nigerian courts.
e. Understanding Court Involvement
Court intervention can complicate arbitration if misunderstood. The handbook demystifies the process, using the Quick Reference Chart to clarify the limited situations where courts may assist. It explains how to seek interim measures, enforce awards, and challenge procedural defects within the AMA’s framework.
Download the Handbook
Arbitration in Nigeria presents challenges, but with the right tools, it remains a valuable alternative to litigation. Our Handbook on Commercial Arbitration in Nigeria is a practical resource for addressing common bottlenecks, from delays in enforcement to drafting effective agreements.
It provides clear strategies and actionable advice to help you manage disputes under the Arbitration and Mediation Act 2023. Business leaders can protect their interests, legal practitioners can confidently handle complex cases, and arbitrators can stay informed with up-to-date insights.
A copy is available for download here.
This handbook provides general information on arbitration laws and practices in Nigeria and is not intended as legal advice. It does not establish an attorney-client relationship, nor should it be viewed as a solicitation or advertisement. Broderick Bozimo and Company has made every effort to ensure accuracy but assumes no liability for any errors or omissions nor for actions taken or decisions made based on this content. Readers should consult qualified legal professionals for advice tailored to their specific circumstances.
For further information or assistance with arbitration matters, you can reach us at arbitration@broderickbozimo.com.
Our team is available to provide detailed support to help you navigate arbitration processes within Nigeria’s legal framework.
