NIGERIA Law and Practice Contributed by: Olasupo Shasore, Ibukun Fasoro, Tochukwu Amaefule and Michael Chukwu, Africa Law Practice NG & Company
13.5 Binding of Third Parties Binding Third Parties to Arbitration in Nigeria Under the AMA, arbitration is fundamentally based on party consent. However, in limited circumstances, third parties who were not original signatories to an arbitration agreement may nonetheless be bound. National Courts and Foreign Third Parties Nigerian courts may recognise these doctrines when deciding if a foreign third party should be joined to or bound by an arbitration agreement or award. Howev - er, the courts generally exercise caution and will only do so where the facts clearly establish legal grounds, in order to respect the principle of consent that under - pins arbitration.
restrictions on third-party funders such as licensing requirements or limits on the types of cases that may be funded. However, the legal and arbitral commu - nity continues to monitor how these rules operate in practice, particularly regarding potential conflicts of interest and transparency in proceedings. 13.4 Consolidation Consolidation of Arbitral Proceedings in Nigeria Arbitral tribunals seated in Nigeria and, in certain cir - cumstances, Nigerian courts may order the consolida -
tion of separate arbitral proceedings. Consolidation may be ordered where: • the parties have agreed to it; or
• the claims arise under the same arbitration agree - ment or compatible agreements, and the tribunal or court finds it appropriate to consolidate to promote efficiency and consistency.
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