NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
possibly also from execution, subject to the particular facts and applicable statutory provisions.
procedures where parties consent, rather than through formal class arbitration. This position aligns with the principle that arbitration remains a consensual pro - cess grounded in party agreement, which Nigerian law continues to uphold. 13.2 Ethical Codes Ethical Standards for Counsel and Arbitrators in Nigeria In Nigeria, counsel appearing in arbitral proceedings are primarily guided by the Rules of Professional Con - duct for Legal Practitioners 2023, issued under the Legal Practitioners Act. These rules impose obliga - tions relating to honesty, fairness, avoidance of con - flicts of interest, and maintaining client confidentiality. For arbitrators, the AMA codifies key ethical duties, notably requirements of independence, impartiality, and disclosure of any circumstances likely to give rise to justifiable doubts about these qualities. Additionally, many Nigerian practitioners and arbitra - tors draw guidance from international soft law instru - ments, such as the IBA Guidelines on Conflicts of Interest in International Arbitration and the IBA Guide - lines on Party Representation. While not binding under Nigerian law, these guidelines are increasingly influen - tial and reflect widely accepted best practice in inter - national arbitration conducted in or seated in Nigeria. 13.3 Third-Party Funding Third-Party Funding in Nigeria: Emerging Rules and Restrictions Third-party funding is expressly recognised and regu - lated under the AMA. The Act permits parties to enter into third-party funding arrangements for arbitration and related proceedings, reflecting a modern and pragmatic approach aligned with international prac - tice. Under the Act, parties are required to disclose the existence of any third-party funding arrangement and the identity of the funder to the other parties and to the arbitral tribunal. This disclosure must be made promptly upon concluding the funding arrangement or upon the party becoming aware of it. Beyond this statutory disclosure obligation, the Act does not currently impose detailed substantive
12.3 Approach of the Courts General Approach of the Courts
Nigerian courts are broadly supportive of arbitra - tion and generally adopt a pro-enforcement stance towards both domestic and foreign arbitral awards. Courts typically focus on procedural fairness and the narrow statutory grounds set out in the Convention and the AMA, rather than reviewing the merits of the underlying dispute. Refusal on Public Policy Grounds Public policy remains one of the key grounds upon which Nigerian courts may refuse enforcement of an award, but this is interpreted narrowly. Courts distin - guish between domestic public policy, which reflects fundamental principles and values of Nigerian law (for example, fraud, corruption, or manifest injustice in the arbitration process), and international public policy, which tends to be narrower and applies to the recog - nition of foreign awards. 13. Miscellaneous 13.1 Class Action or Group Arbitration Class and Group Arbitration in Nigeria Nigerian arbitration law does not specifically provide for class action arbitration or group arbitration. The AMA and prior legislation focus on party autonomy and typically contemplate arbitration between clearly defined parties who have agreed to submit their dis - putes to arbitration. In practice, this means that for claims to be heard together or on a representative basis, there must be a clear, express agreement by all affected parties. The absence of statutory provisions permitting or regu - lating class arbitration creates a significant limitation: arbitrators in Nigeria generally lack jurisdiction to con - duct class or group proceedings unless the parties have specifically consented to such a mechanism in their arbitration agreement. As a result, multiparty disputes are often managed by consolidating separate arbitrations or through joinder
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