NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
• orders securing assets or property that could be used to satisfy an eventual award; and • orders to maintain or restore the status quo or to preserve evidence. Emergency Arbitrators Under Nigerian Law The AMA expressly recognises and permits the appointment of emergency arbitrators under the rules of arbitral institutions that provide for such pro - cedures. Decisions or orders of an emergency arbitra - tor under Nigerian law are binding on the parties, in the same way as interim measures issued by a regu - lar tribunal. The emergency arbitrator may grant relief aimed at preventing irreparable harm, preserving the status quo, protecting assets or evidence relevant to the arbitration. Limits on Court Intervention Once an Emergency Arbitrator is Appointed Once an emergency arbitrator has been appointed, the national courts generally cannot intervene to revisit or overturn the emergency arbitrator’s decision on the merits of the relief granted. However, courts may still exercise jurisdiction to enforce the emergency arbitra - tor’s order, or to address specific issues outside the scope of the arbitrator’s powers. 6.3 Security for Costs Power of Arbitral Tribunals to Order Security for Costs The law expressly empowers arbitral tribunals to order a party to provide security for costs. Under the AMA, a tribunal may, upon application by a party, issue an order requiring another party to furnish security to cover potential costs of the arbitration. Tribunals typically consider factors such as the apparent merits of the claim or defence; the financial standing of the party against whom the order is sought; and whether the application is being used tactically to obstruct the proceedings. Role of the Courts While the arbitral tribunal is the primary decision‑mak - er on security for costs, the courts also have support - ing powers. Before the tribunal is constituted, a party may apply to the court for interim relief, which may include an order for security for costs if circumstances justify urgent judicial intervention. Once the tribunal
is in place, the courts usually defer to the tribunal’s competence to handle such applications, reflecting Nigeria’s policy of judicial non‑interference in matters within the tribunal’s jurisdiction.
7. Procedure 7.1 Governing Rules National Legislation
The AMA regulates matters such as composition of the tribunal; conduct of proceedings; powers of the tribunal (including interim measures and emergency arbitrators); recognition and enforcement of awards; and setting aside and challenging awards. Party Autonomy, Institutional Rules and Institutional Guidance Beyond the national legislation, parties enjoy broad autonomy to determine procedural rules. Frequently, parties choose to incorporate into their arbitration agreements the rules of established arbitral institu - tions. In practice, many arbitrations seated in Nigeria follow institutional rules to promote procedural pre - dictability, efficiency, and neutrality. However, ad hoc arbitrations are still common, especially where parties prefer to avoid administrative costs associated with institutions. 7.2 Procedural Steps Procedural Steps Required by Law in Nigerian- Seated Arbitrations The AMA requires certain minimum procedural steps (which are determined depending on the nature, com - plexity and context of each dispute) to safeguard fair - ness and due process such as: • Proceedings start when the claimant serves a written notice stating the claim, relief sought, and arbitration agreement. • The arbitral tribunal is constituted, either in accord - ance with the parties’ agreement or, failing that, by the court or a designated appointing authority. • Both parties must have a full and equal chance to present their case, and this right cannot be waived. • The tribunal sets deadlines for detailed submis - sions of facts, arguments, and evidence by both sides.
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