Collective Redress and Class Actions_2025

NIGERIA Law and Practice Contributed by: Adeyinka Aderemi, Omono Blessing Omaghomi and Ibukun Enigbokan, Streamsowers & Köhn

cesses. ADR methods that may be employed include mediation or informal without-prejudice roundtable meetings between the class representatives and defendants. Legal practitioners are generally required by the Rules of Professional Conduct for Legal Practi- tioners to inform their clients about alternative options to litigation that are reasonably available. However, the decision to engage in ADR ultimately rests with the parties, and there is no mandatory requirement to do so. While the various High Court rules make provisions for ADR methods such as arbitration and conciliation/ mediation, they do not explicitly address how class actions should be handled. Some High Court rules mandate the use of settlement mechanisms before commencing actions in court. By way of example, the Lagos 2019 Rules and the High Court of Lagos State (Expeditious Disposal of Civil Cases) Practice Direc- tion (No 2) of 2019 on Pre-action Protocols require parties to: • exchange sufficient information; • attempt to settle the issues without litigation; • consider ADR to facilitate settlement and reduce costs; and • treat litigation as a last resort. Similarly, Order 5 Rule 8 of the Lagos 2019 Rules man- dates that – upon the filing of originating processes ‒ the registry of the court must screen the processes for suitability for ADR. Where it is considered appropri- ate, the chief judge may refer the case to the Lagos Multi-Door Courthouse or other appropriate ADR insti- tutions or practitioners. Similar provisions are made in Order 2 Rule 7 of the High Court of the Federal Capital Territory, Abuja (Civil Procedure) Rules 2018. Once an action has commenced, the court has the authority to order the parties to attempt an amica- ble resolution of the dispute. In deciding whether to exercise this power, the court will consider the circum- stances, including whether any party has refused ami- cable resolution. The court may also propose potential solutions for amicable resolution at any stage of the proceedings. Throughout the proceedings, parties are encouraged to explore the possibility of ADR and settlement. The overriding objective of the rules of

various High Courts is to actively manage cases by encouraging parties to use an ADR procedure if the court deems it appropriate and by facilitating the use of such procedures. For instance, Order 19 of the High Court of the Federal Capital Territory, Abuja (Civil Procedure) Rules 2018 provides for ADR and arbitration as alternative means of resolving disputes. Similarly, Orders 27 and 28 of the Lagos 2019 Rules make provisions for referring suitable actions to the Lagos Multi-Door Courthouse or any other ADR centre. 3.13 Judgments and Enforcement of Judgments The judgment in a collective redress or class action is considered final and enforceable, unless successfully appealed. This judgment applies to all parties involved in the dispute, including the class members who were part of the action at the time the judgment was made. These class members consist of individuals who have claims or obligations that fall within the defined scope of the class action as determined by the court. In Nigeria, it is currently recognised that ‒ in a repre- sentative action – both named and unnamed plaintiffs and/or defendants, along with those they represent, are considered parties to the action. However, the named representative plaintiffs and/or defendants hold a dominant role until the case is resolved. This means that, when an action is initiated in a representa- tive capacity, it is not solely against or carried out by the named parties but also includes those whom they represent (even if they are not specifically mentioned by name). It is important to note that claimants who choose to opt out of the proceedings will not be bound by the judgment. The withdrawal becomes effective once the court receives notification of the withdrawal. Enforcement of Judgments There is no specific mechanism in place for the enforcement of judgments in collective redress or class actions. Instead, the usual procedural rules gov- ern the relevant enforcement mechanisms. These may include attachment, charging, sale and possession orders, as well as potential committal proceedings. The mechanisms for enforcing judgments in Nigeria, including procedures, are outlined here.

210 CHAMBERS.COM

Powered by