NIGERIA Trends and Developments Contributed by: Muyiwa Ogungbenro and Daniel Adegbamigbe, Olajide Oyewole LLP (DLA Piper Africa, Nigeria)
The arbitration rule of the Arbitration and Mediation Act 2023 is, understandably, the default rule where government institutions have omitted to specify any arbitration rule. Repositioning Nigeria as the seat of arbitration Recognising the persistent challenge of Nigeria’s exclusion as a preferred seat for arbitration, the Policy introduces a series of initiatives aimed at repositioning Nigeria as a leading commercial centre for arbitration and ADR. Some of the initiatives are as follows. Designation of Nigeria as the seat and venue of arbitration In cases involving Nigerian governmental bodies, Nigeria must be the seat and venue of the arbitra - tion proceedings. The Policy encourages greater use of Nigerian arbitration institutions and aims to make Nigeria a central hub for dispute resolution involving government entities. Mandatory ADR at the multi-door courthouses (MDCs) The Policy mandates adoption of pre-arbitration set - tlement processes through the MDCs in Nigeria. Establishment of special commercial courts To further strengthen Nigeria’s arbitration landscape, the Policy calls for the creation of specialised commer - cial courts, including small claims courts, dedicated to the expeditious resolution of commercial disputes. These courts would provide a more tailored and effi - cient avenue for resolving arbitration-related issues, ensuring fair, timely and effective dispute resolution. By focusing on these strategic initiatives, the Policy seeks to eliminate the current barriers hindering Nige - ria’s ability to attract and host international arbitration cases, thereby positioning the country as a competi - tive and reliable jurisdiction for arbitration in Africa and beyond. Appointment of arbitrators The Policy mandates the appointment of an ADR expert with recondite qualification and competence in cases of an arbitral tribunal with three arbitrators. In international commercial arbitration involving any of the MDAs, the Director of the Regional Centre for
International Commercial Arbitration may be request - ed to appoint one or more arbitrators on behalf of the MDAs. In cases where Nigeria itself or a state govern - ment is involved as a party, the appointment would be made by the Attorney General of the Federation or the Attorney General of the State. Contract negotiation, drafting and monitoring by federal and state MDAs The Policy introduces a critical mandate for the capacity-building of federal and state Ministries of Justice, focusing specifically on the areas of contract negotiation, drafting and implementation monitoring. The Policy stipulates the establishment of a structured capacity framework aimed at enhancing the skills and expertise of government officials involved in the negotiation and drafting of contracts. The objective is to ensure that personnel within the federal and state Ministries of Justice are adequately equipped with the necessary legal knowledge and practical skills to engage effectively in these processes. This train - ing framework will, therefore, provide a systematic approach for equipping the Ministries with compe - tencies in the complexities of contract law, negotiation strategies, and the nuances of drafting agreements that are legally sound and commercially viable. Moreover, the Policy extends the scope of responsibil - ity of these Ministries, specifically in situations where MDAs are parties to commercial contracts (particularly those involving foreign entities). The Policy explicit - ly requires these ministries to actively participate in negotiations and the drafting of such agreements. Additionally, the Policy places an enhanced empha - sis on the role of these Ministries in the monitoring and enforcement of contract performance. Beyond the negotiation and drafting stages, the Ministries are now tasked with the responsibility of overseeing the implementation of contracts, ensuring that the terms are adhered to and that any issues arising during the execution phase are swiftly addressed. This also includes monitoring ongoing arbitral proceedings and court cases involving the federal and state govern - ments, and ensuring that disputes are managed effec - tively and that the government’s interests are properly represented in legal proceedings.
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