NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
and intellectual property, when these overlap with arbitration. • Lagos State High Court (Commercial Division): Widely regarded as Nigeria’s most arbitration-savvy court, this division often handles complex com - mercial arbitration-related cases, both domestic and international. Judges there frequently receive arbitration-specific training and are experienced in managing applications under the AMA. • Courts of Appeal and the Supreme Court: They hear appeals from lower courts, primarily on ques - tions of jurisdiction, procedural issues relating to arbitration, enforcement or setting aside proceed - ings. 2. Governing Legislation 2.1 Governing Law Governing Legislation for International Arbitration in Nigeria Arbitration in Nigeria is governed by the AMA, which is substantially modelled on the UNCITRAL Model Law, incorporating its core principles to ensure procedural fairness, respect for party autonomy, and limited judi - cial intervention. Notably, the Act mirrors the Model Law’s approach to the finality of awards and provides a framework that supports party equality and the tri - bunal’s competence to rule on its own jurisdiction. While the Act retains the Model Law’s structure, it also introduces practical and innovative features designed to enhance Nigeria’s attractiveness as an arbitral seat, such as: • Emergency Arbitrators: The Act expressly provides for the appointment of emergency arbitrators, ena - bling parties to seek urgent interim relief before a tribunal is constituted – a modern addition that the original Model Law does not cover. • Third-party Funding: Another forward-looking innovation is the express recognition of third-party funding arrangements, subject to disclosure obli - gations to ensure transparency. • Award Review Tribunal: Uniquely, the Act permits parties to agree to a review mechanism for arbitral awards before they become final, offering an addi - tional opportunity to address potential errors within
the arbitral process itself rather than through court challenges. 2.2 Changes to National Law Recent Developments in Arbitration Law and Prospective Reforms Over the past year, Nigeria has already implemented the AMA which is the most transformative arbitration reform in recent history. This new legislation replaced the older Arbitration and Conciliation Act and repre - sented a major modernisation of Nigeria’s arbitration framework. The 2023 Act introduced several significant innova - tions, including clear provisions for emergency arbi - tration, third-party funding transparency, party-driven award review panels, and streamlined mechanisms for consolidation and joinder of proceedings. These measures align Nigeria more closely with international norms and enhance its competitiveness as a seat for both commercial and investment arbitration. At present, there are no pending bills or legislation expected to further amend the new Act. However, policymakers and key stakeholders, including the judi - ciary, legal practitioners, and arbitration practitioners/ centres are discussing practical measures to enhance the infrastructure supporting arbitration. 3. The Arbitration Agreement 3.1 Enforceability Legal Requirements for Enforceable Arbitration Agreements in Nigeria Under Nigerian law, arbitration agreements must meet the following essential requirements to be legally enforceable: • Written Form and Clarity of Intent: The agreement must be in writing (recorded by any means, such as electronic communication, provided the content is accessible for future reference) and clearly express the parties’ intention to submit disputes to arbitra - tion. While parties often incorporate arbitration clauses directly into commercial contracts, sepa - rate arbitration agreements are equally enforce -
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