NIGERIA Law and Practice Contributed by: Tayo Oyetibo LP
to those available in litigation, subject to the parties’ agreement and the limits imposed by law. Arbitral tribunals may grant: • monetary reliefs, including damages (general and special), interest and costs; • declaratory reliefs, determining the rights and obli- gations of the parties; • specific performance and other equitable rem- edies, where appropriate; and • injunctive reliefs, including both interim and final orders. In addition, tribunals may grant interim protection measures, as expressly recognised under the Arbi- tration and Mediation Act 2023 (“AMA”). The tribunal’s power to grant interim relief is not abso- lute and is subject to certain limitations: • party autonomy – the parties may, by agreement, limit or exclude the tribunal’s power to grant interim measures; • lack of coercive powers over third parties – tri- bunals generally cannot enforce orders against non-parties, which may necessitate recourse to the courts; and • enforcement considerations – although interim measures are binding, their effectiveness may depend on court assistance for enforcement. In addition to litigation and arbitration, a range of formal alternative dispute resolution (“ADR”) mecha- nisms are available in Nigeria for resolving commercial disputes. These mechanisms are increasingly recog- nised and, in some cases, institutionally supported. The principal ADR procedures are as follows. • Mediation: This is the most widely utilised ADR mechanism in Nigeria. It involves a neutral third party facilitating negotiations between disputing parties with a view to achieving a mutually accept- 4. Other ADR Methods 4.1 ADR Procedures
able settlement. Mediation is relatively cost-effec- tive, flexible and less formal than litigation or arbi- tration. It is supported by institutional frameworks such as the Lagos Multi-Door Courthouse and the Lagos Court of Arbitration, both of which provide structured mediation services. • Conciliation: Although recognised under Nigerian law, particularly the Arbitration and Mediation Act 2023, conciliation is less frequently utilised in practice. It is similar to mediation but may involve a more active role for the neutral in proposing settle- ment terms. • Negotiation: This is the most informal ADR mecha- nism, involving direct discussions between the parties without a third party. It is often the first step in dispute resolution and may precede recourse to more structured processes. • Early Neutral Evaluation (ENE): This involves engaging an independent expert who provides a non-binding assessment of the dispute’s merits at an early stage, thereby assisting parties in evaluat- ing their positions and facilitating settlement. • Med-Arb: This is a hybrid process in which media- tion is attempted first and if unsuccessful, the mat- ter proceeds to arbitration, sometimes before the same neutral. • Expert Determination: This mechanism is common- ly used in technically complex disputes, particularly in sectors such as construction and infrastructure. An independent expert is appointed to determine specific issues and the decision may be binding or advisory depending on the parties’ agreement. • Ombudsman (Public Complaints Commission): The Public Complaints Commission (PCC) of Nigeria is empowered to investigate complaints relating to maladministration by public authorities and cer- tain corporate bodies. While it provides a form of administrative dispute resolution, it is less com- monly utilised in commercial dispute contexts. In practice, mediation, particularly through institutional platforms such as the Lagos Multi-Door Courthouse, remains the most prominent ADR mechanism out- side arbitration, with other processes being adopted depending on the nature and technical complexity of the dispute.
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