NIGERIA Trends and Developments Contributed by: Vincent Owhor, Akinola Samuel Oladimeji and Zaynab Abdussalam, Streamsowers & Köhn
consolidated proceedings on the basis of the consoli- dation itself. Joinder of parties Another innovative provision of the AMA is the join- der of additional parties. In multiparty commercial dis- putes, it is possible for parties who were not originally named in a contract to become affected by the dis- putes. By way of example, in a construction project, a subcontractor engaged by the main contractor may be responsible for executing a portion of the project. If the main contract between the employer and the contractor contains an arbitration clause, particularly one with an umbrella provision stating that “any dis- pute arising under or in connection with this contract shall be resolved by arbitration”, the subcontractor may seek to rely on this clause to resolve disputes that arise from or relate to their scope of work. Section 40 of the AMA permits an arbitral tribunal to join a third party where there is preliminary evidence that the arbitration agreement binds that party. This threshold is intentionally low at the initial stage, allow- ing the tribunal to admit the party without making a final determination on jurisdiction. The tribunal retains the authority to revisit and rule on jurisdictional objec- tions at a later stage in the proceedings. The Rules also provide procedural guides on how applications for joinder are made. Where an existing party to an arbitration wishes to bring another party into the proceedings, the existing party must submit a formal request to the arbitral tribunal. This request should clearly identify all parties involved, including the proposed additional party, and must outline the legal and factual basis for the joinder. It should also specify the relief or remedy being sought and confirm that all relevant parties and the tribunal have been served with the request. Upon receiving a request for joinder, the proposed additional party is required to respond within 15 days. Their response must include their contact details, any objections to the tribunal’s jurisdiction over them, and their position on the claims and remedies outlined in the request. If the additional party has any claims against existing parties, these should also be stated.
The response must be served on all parties and the tribunal. In some cases, a third party may independently seek to be joined to the arbitration. Such a request must be submitted to the tribunal and must comply with the same requirements as those applicable to requests initiated by existing parties. Once a request for joinder is made, the other parties to the arbitration are expected to submit their com- ments within 15 days. These comments may include jurisdictional objections, responses to the claims and remedies sought, and any counterclaims against the proposed additional party. As with other submissions, confirmation of service on all parties and the tribunal is required. When a new party is joined to the arbitration, the pro- ceedings in relation to that party are deemed to com- mence on the date the tribunal receives the request for joinder. Furthermore, all parties existing and newly joined are considered to have waived any objections to the validity or enforceability of any award made by the tribunal on the basis of the joinder. However, the practical application of joinder remains fraught with challenges. A third party may resist being joined on the basis that they never consented to arbi- tration or that the arbitration clause is too narrowly drafted to encompass them. Even where a contractual nexus exists, the language of the arbitration agree- ment may not be sufficiently broad to support joinder. These concerns raise important questions about due process and the enforceability of arbitral awards involving joined parties. If a tribunal proceeds without a clear basis for jurisdiction over the additional party, any resulting award may be vulnerable to challenge or refusal of enforcement. Outlook The AMA represents a significant advancement in Nigeria’s arbitration framework, particularly in its rec- ognition of the complexities inherent in multi-party disputes.
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