International Commercial Arbitration at Nigeria
International Commercial Arbitration in Nigeria is governed primarily by laws and institutions that align with global arbitration standards, while also reflecting local legal developments. Here is an overview of its key aspects:
⚖️ Legal Framework for International Commercial Arbitration in Nigeria
1. Arbitration and Mediation Act, 2023
This is the most recent and comprehensive arbitration legislation in Nigeria.
It repeals the Arbitration and Conciliation Act, Cap A18, Laws of the Federation of Nigeria 2004.
The 2023 Act incorporates:
The UNCITRAL Model Law on International Commercial Arbitration.
Provisions from the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
2. Recognition of Foreign Arbitral Awards
Nigeria is a signatory to the New York Convention (1958).
Foreign arbitral awards are enforceable in Nigeria without retrial, provided they meet conditions under the Convention and local law.
🏛️ Arbitral Institutions in Nigeria
Several institutions support arbitration:
- Lagos Court of Arbitration (LCA)
Provides facilities, rules, and administrative services.
Popular for both domestic and international disputes.
- Chartered Institute of Arbitrators (CIArb), UK – Nigeria Branch
Offers training, accreditation, and dispute resolution services.
- Regional Centres
Regional Centre for International Commercial Arbitration – Lagos (RCICAL)
Established under the auspices of the Asian-African Legal Consultative Organization (AALCO).
Independent and recognized internationally.
🧾 Key Features of Arbitration in Nigeria
✅ Party Autonomy
Parties can choose:
Language of arbitration
Seat of arbitration (including outside Nigeria)
Number and identity of arbitrators
Procedural rules (institutional or ad hoc)
📜 Enforcement of Awards
Nigerian courts generally support enforcement, provided the award is:
Valid and final
Not contrary to public policy
Meets formal requirements under the Act
⚠️ Grounds for Setting Aside an Award
Limited grounds, including:
Incapacity of a party
Invalid arbitration agreement
Procedural irregularity
Public policy conflict
🔍 Recent Developments & Trends
Growing preference for arbitration over litigation in commercial contracts.
Increasing use of technology and online hearings.
Judicial support for arbitration processes and enforcement.
Government reforms and awareness initiatives promoting ADR mechanisms.
📌 Challenges
Judicial delays in enforcement proceedings.
Lack of awareness among some local businesses.
Cost and accessibility of formal arbitral institutions for SMEs.
✅ Conclusion
Nigeria is steadily strengthening its arbitration framework to align with international standards, making it an increasingly viable venue for resolving cross-border commercial disputes in Africa. The Arbitration and Mediation Act, 2023 marks a significant step in positioning Nigeria as an arbitration-friendly jurisdiction.
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