Singapore Convention on Mediation: Nigeria’s New Milestone

What is the Singapore Convention on Mediation?

The Singapore Convention on Mediation, formally named the United Nations Convention on International Settlement Agreements Resulting from Mediation, is a significant legal development in international trade law. It targets commercial disputes, providing a framework for enforcing settlement agreements resulting from mediation across international borders. The Convention’s scope, as outlined in Article 1, applies when a commercial dispute involves parties operating in different states or where a substantial part of the obligations under the settlement agreement is performed in a state different from that of the parties’ business locations.

The Convention excludes certain types of disputes, such as those for personal, family, or household purposes, and those concerning family, inheritance, or employment law, as specified in Article 1(2). It also does not apply to agreements approved by a court or enforceable as a court judgment or arbitral award, as stated in Article 1(3).

A settlement agreement is considered ‘in writing’ under the Convention if it is recorded in any form, including electronic communication, as long as the information is accessible for future reference (Article 2(2)). The term’ mediation’ within the Convention (Article 2(3)) encompasses various processes, irrespective of the terminology used, and involves parties attempting to reach an amicable settlement with the help of a third-party neutral or neutrals who lack the authority to impose a solution.

The Singapore Convention’s importance lies in providing a consistent and reliable method for enforcing international mediation agreements, as detailed in Articles 3 to 5. It simplifies the resolution of cross-border commercial disputes, enhancing efficiency and predictability for international business transactions. The Convention also represents a progressive shift in global commercial relations by promoting mediation as a less adversarial and more collaborative form of dispute resolution. Its adoption signifies a commitment to a harmonised legal approach, fostering an environment more conducive to international trade and investment.

Why Does it matter for Nigeria?

With its recent ratification of the Singapore Convention on Mediation, Nigeria has added a significant tool to its repertoire for resolving international commercial disputes. Until now, litigation and arbitration have been the predominant methods in such matters. These traditional approaches, known for their thoroughness, often come with extended timelines and substantial costs. The ratification of the Singapore Convention introduces an alternative path, supplementing these established methods with a more streamlined and cost-effective option in mediation. This development gives Nigerian and international businesses additional flexibility, especially when swift and amicable dispute resolution is crucial for maintaining commercial relationships and operational continuity.

This move positions Nigeria at the forefront in Africa, demonstrating a commitment to modernising its dispute resolution framework. While many African nations are enhancing their systems, Nigeria’s adoption of the Convention sets a notable example, potentially inspiring a continent-wide trend towards embracing mediation for commercial disputes. Such leadership in dispute resolution raises Nigeria’s profile in the global business arena and underlines its dedication to fostering an environment conducive to effective and amicable trade resolutions.

Anticipating the Impact in Nigeria

In anticipation of the Singapore Convention on Mediation becoming effective on 27 May 2024, Nigeria’s legal landscape is poised for significant advancement, particularly in light of the Arbitration and Mediation Act 2023. With its comprehensive provisions for international and domestic mediation (Section 67), this Act sets the stage for the seamless integration of the Convention’s principles, enhancing Nigeria’s capability to handle international commercial disputes.

Crucially, the Act’s framework for international commercial mediation (Section 67(1)(a)), international settlement agreements resulting from mediation (Section 67(1)(d)), and its guidelines for the enforcement of international settlement agreements (Section 87) resonate with the Convention’s objectives. This alignment indicates Nigeria’s readiness to adopt a dual approach, adhering to national and international mediation standards.

The Act’s emphasis on good faith in mediation (Section 73(1)) and the suspension of limitation periods during the mediation process (Section 71) reflect an approach that values amicability and efficiency, fundamental tenets of the Singapore Convention. The confidentiality rules (Section 76) also ensure the security and privacy essential in commercial negotiations, aligning with global best practices in dispute resolution.

The Act and the Singapore Convention create a comprehensive framework for mediation in Nigeria. This framework supports the resolution of international commercial disputes in a manner that is efficient, fair, and conducive to maintaining positive business relationships. Such a legal environment will likely bolster investor confidence, portraying Nigeria as a jurisdiction committed to efficient, fair, and predictable dispute resolution.

In understanding the integration of the Singapore Convention into Nigerian law, Section 12(1) of the 1999 Constitution provides a crucial context. This section states that an international treaty shall have legal force in Nigeria only to the extent that it has been enacted into law by the National Assembly. This means that the provisions of the Singapore Convention will become enforceable in Nigeria insofar as they are specifically adopted through legislative action. Section 87 of the Arbitration and Mediation Act 2023 aligns with the Convention, particularly regarding the enforcement of international settlement agreements.

Nigeria Leading the Way

Nigeria’s ratification of the Singapore Convention establishes it as a key influencer in mediation across the continent.

The country’s commitment to developing a skilled pool of mediators and mediation advocates is central to this leadership role. Investing in such human capital through education, training programs, and practical workshops will be essential. This focus on skill development will benefit the domestic market and position Nigeria as a hub of mediation expertise in the region – providing a model for effective conflict resolution that other African countries can emulate.

Collaboration forms a crucial part of Nigeria’s leadership strategy. By forging partnerships with regional entities, international organisations, and neighbouring countries, Nigeria can play a vital role in promoting the benefits of mediation. These partnerships could involve sharing insights and best practices, assisting in developing mediation frameworks and creating platforms for knowledge exchange. Such collaborative efforts will elevate the practice of mediation across Africa and strengthen Nigeria’s diplomatic and trade relations, cementing its position as a promoter of cooperative and efficient dispute resolution.

Making It Work

With the Arbitration and Mediation Act already establishing a solid foundation for mediation in Nigeria, the focus for effectively implementing the Singapore Convention on Mediation shifts towards optimising and utilising the existing legal infrastructure.

The government’s role is crucial in ensuring the continuous alignment of national practices with the Convention. This involves regular reviews and updates to the Act and related policies, if necessary, ensuring they remain consistent with the evolving standards set by the Convention. Additionally, the government should engage in robust awareness campaigns, informing stakeholders about the Act and the Convention and their implications for domestic and international dispute resolution.

For legal professionals and mediators, specialised training and continuous education are vital. They need to be well-versed in the nuances of the Convention and how it integrates with Nigeria’s existing laws. This training ensures practitioners can effectively manage and resolve disputes under the Convention.

Businesses and community groups also play a significant role. They can advocate for and facilitate mediation in commercial contracts and community disputes, thus establishing a culture where mediation is viewed as a viable and effective alternative to litigation.

Accordingly, effective implementation of the Singapore Convention in Nigeria hinges on a combination of government initiative, professional training, and community engagement, all within the framework of the Arbitration and Mediation Act. This approach ensures a cohesive and comprehensive adoption of the Convention, reinforcing Nigeria’s commitment to progressive and amicable dispute resolution.

Overcoming Challenges

Implementing the Singapore Convention on Mediation in Nigeria, like any country, comes with challenges. A primary hurdle is the existing reliance on traditional litigation and arbitration. Addressing this requires a strategic approach by the government and legal sector to highlight mediation’s benefits, such as its cost efficiency and shorter resolution times. Educational campaigns, including workshops and seminars showcasing successful mediation cases, will be crucial in shifting perspectives and encouraging the adoption of mediation.

Uniformity in mediation practices is another challenge. Nigeria can draw lessons from countries that have effectively integrated the Convention into their legal systems. By studying their models, Nigeria can develop standardised training programs and best practices, ensuring that mediators adhere to high and consistent standards.

Handling cross-border disputes efficiently, particularly with cultural and legal variances, is also critical. Here, Nigeria can gain insights from countries with extensive experience in international mediation, like Singapore and the United States. Adopting strategies that embrace cultural sensitivity and a deep understanding of different legal systems will be essential for handling international disputes effectively.

To surmount these challenges, a collaborative effort is necessary. The government, legal professionals, businesses, and community groups must work together to promote the advantages of mediation, establish standardised practices, and incorporate learnings from global experiences.

Conclusion

Nigeria’s ratification of the Singapore Convention on Mediation is a landmark development in its legal landscape. This significant step, supported by the Arbitration and Mediation Act 2023, aligns Nigeria with global mediation practices and sets it up as a potential leader in this field within the African continent. The emphasis on enhancing mediation expertise and fostering regional and international collaboration underscores Nigeria’s commitment to becoming a key player in international mediation.

In the long term, the Convention is poised to have a transformative impact on Nigeria. It promises to create a more amicable and efficient environment for resolving international commercial disputes, bolstering Nigeria’s appeal to global investors and strengthening its economic relationships worldwide. As Nigeria continues to integrate these global standards, it stands to benefit from a more robust legal framework, improved international relations, and a cooperative business climate. This progressive approach to dispute resolution positions Nigeria for a future of enhanced stability and prosperity in the international community.