1.0 Introduction
The National Policy on Arbitration and Alternative Dispute Resolution (ADR), 2024 represents a strategic effort to enhance Nigeria’s dispute resolution framework. By positioning Nigeria as a regional arbitration hub, the policy seeks to modernize arbitration laws, streamline judicial processes, and integrate ADR into mainstream dispute resolution. This analysis evaluates the key objectives, strengths, and challenges of the policy while assessing its potential impact on Nigeria’s legal and economic landscape.
2.0 Key Objectives and Strengths
2.0.1. Positioning Nigeria as an Arbitration Hub
One of the policy’s main goals is to establish Nigeria as a preferred venue for domestic, regional, and international arbitration. This ambition aligns with global trends, where arbitration is increasingly favored over litigation due to its efficiency and neutrality.
Impact:
• Increased investor confidence in Nigeria’s dispute resolution framework.
• Economic growth due to reduced reliance on litigation, which often discourages foreign investment.
• Decongestion of courts, allowing the judiciary to focus on complex legal issues.
2.0.2. Legislative and Judicial Reforms
The policy aligns Nigeria’s arbitration framework with international standards, including: UNCITRAL Model Law, ensuring consistency with global best practices; New York Convention, facilitating the recognition and enforcement of arbitral awards; Singapore Convention, improving the enforceability of international mediation settlements. Additionally, courts are mandated to enforce arbitration agreements, fast-track arbitration-related proceedings, and conclude judicial proceedings arising from arbitration and ADR within 60 days from the date of filing. Appeals relating to Arbitration and ADR shall also be determined within 270 days from the date of filing the appeal. All appeals from arbitration and ADR matters shall terminate at the Court of Appeal.
Impact:
• Strengthened credibility of Nigeria’s arbitration system.
• Improved enforcement of arbitral awards domestically and internationally.
• A more predictable and investor-friendly legal environment.
2.0.3. Small Claims Arbitration
The policy introduces simplified arbitration procedures for disputesfor debt recovery of up to ₦5 million, breach of contract, Landlord and Tenant matters and consumer right issues, where the amount claimed does not exceed Five Million Naira, thereby reducing costs and expediting resolutions. Also, Legal representation has becomeoptional, making arbitration accessible to low-income individuals and SMEs.
Impact:
• Increased access to justice for small businesses and individuals.
• Significant reduction in the backlog of minor disputes clogging the court system.
• Cost-effective dispute resolution, benefiting SMEs and startups.
2.0.4. Capacity Building and Training
To ensure sustainable ADR development, the policy integrates arbitration into Legal education curricula to create a pipeline of ADR practitioners, Judicial training programs for judges to handle arbitration-related cases effectively and Public-private partnerships to enhance technical expertise. The Government would also encourage the Private sector to adopt arbitration and ADR in resolving commercial disputes rather than the frequent recourse to the regular courts to address commercial disputes.
Impact:
• A well-trained ADR workforce, boosting professionalism in the field.
• Increased adoption of ADR mechanisms by the legal and business communities.
• More predictable and informed judicial decisions on arbitration-related cases.
2.0.5. Institutional Reforms
The policy seeks to Revitalize the Regional Centre for International Commercial Arbitration (RCICAL), establish a National Arbitration Register to track arbitrators and case statistics, and create a Bilateral Investment Treaty (BIT) Repository to centralize arbitration-related treaties. Furthermore, the policy establishes an Advisory Council made up of Arbitration, ADR experts and the President of the NBA to advice the HAGF/HAFs. The policy shall be implemented for five years and thereafter be reviewed to accommodate prevailing trends in Arbitration and ADR practices.
Impact:
• Enhanced institutional credibility and efficiency.
• Greater transparency in arbitration processes.
• Strengthened Nigeria’s positioning in international dispute resolution.
3.0 Conclusion
The National Policy on Arbitration and Alternative Dispute Resolution 2024, is a transformative initiative that, if effectively implemented, could establish Nigeria as Africa’s leading arbitration hub. By aligning with international standards, strengthening judicial processes, and expanding access to arbitration, the policy has the potential to significantly improve Nigeria’s dispute resolution framework. However, significant attention should also be paid to emerging technology including AI for document review, predictive analytics, and case management, increased adoption of virtual hearings, growing use of online dispute resolution (ODR) platforms, and a shift towards more streamlined and expedited arbitration procedures, particularly for smaller disputes.Blockchain technology can also be utilized for record-keeping and improved transparency. Through strategic investments, stakeholder collaboration, and adaptive governance, Nigeria can leverage arbitration as a catalyst for economic growth and legal modernization.
Samuel Fagade MCIArb (UK)
Mr Omotade Agunloye
