NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
This is hardly surprising given Nigeria’s status as one of Africa’s largest oil producers and the complexity and value of contracts in this industry. Disputes often arise from production sharing contracts, joint ven - ture arrangements, and service agreements involving multinational oil companies and Nigerian companies or multinationals and the Nigerian government or its agencies. Beyond oil and gas, the power sector has also seen a steady rise in international arbitration cases. The sector’s reform and privatisation process has led to complex contractual arrangements between Nigerian entities and foreign investors, which often designate arbitration as the dispute resolution method to protect foreign investment and ensure neutrality. Other industries experiencing notable arbitration activity include: • construction and infrastructure, driven by large- scale public-private partnership projects and foreign-financed developments; • shipping and maritime, given Nigeria’s strategic coastal position and its active shipping and off - shore support industries; and • telecommunications, where foreign investment and licensing arrangements sometimes lead to cross- border disputes. The preference for arbitration in these industries is largely driven by the need for specialised dispute resolution, confidentiality, enforceability of awards internationally, and confidence in a process that can proceed even if local courts are slow or unpredictable. The complexity and high value of contracts in these sectors make arbitration a natural choice to manage risk and protect commercial interests. 1.3 Arbitration Institutions Preferred Arbitral Institutions for International Disputes in Nigeria International arbitration involving Nigerian parties often proceeds under established global rules admin - istered by bodies such as the International Chamber of Commerce (ICC), International Centre for Settle - ment of Investment Disputes and the London Court of International Arbitration (LCIA).
Multinationals often favour international arbitration or their predictability, strong case management and global enforcement network under the New York Con - vention. They are also popular due to their efficiency, experienced tribunal panels and flexibility, especially where the seat is London. On its part, the ICSID pro - vides treaty-based jurisdiction and awards enforce - able without local judicial review. However, in addition to these, domestic institutions such as the Lagos Court of Arbitration and Regional Centre for International Commercial Arbitration (RCI - CAL) have gained traction as they offer proximity to federal agencies and governmental bodies. No entirely new national arbitral body has been established in Nigeria. Instead, existing centres have focused on expanding their services and infrastruc - ture such as the Lagos Court of Arbitration enhancing its digital case-management platform and introducing an emergency-arbitrator protocol in late 2024, follow - ing the enactment of the AMA in 2023. Nigeria also adopted the National Policy on Arbitration and Alternative Dispute Resolution (ADR) in October 2024, which entails a commitment from the Fed - eral Government of Nigeria to upgrade the RCICAL through funding grants and enhanced facilities. 1.4 National Courts Designated Courts for Arbitration-Related Matters in Nigeria There is no specialised “international commercial court” solely dedicated to arbitration matters. Instead, the regular superior courts of record handle arbitra - tion‑related disputes. While Nigeria has not formally established a separate international commercial court, the combination of statutory jurisdiction under the AMA and the practical concentration of arbitration- related matters in certain High Court divisions (par - ticularly in commercial hubs like Lagos and Abuja) means that parties typically benefit from judges with considerable arbitration expertise. In practice, specific courts have developed de facto specialisation.
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