NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
• State High Courts and the Federal High Court – both have jurisdiction under the AMA to hear applications for recognition, enforcement, and challenges to arbitral awards. The Federal High Court also hears cases involving issues within its exclusive jurisdiction, such as admiralty, banking, and intellectual property, when these overlap with arbitration. • Lagos State High Court (Commercial Division) – widely regarded as Nigeria’s most arbitration-savvy court, this division often handles complex com - mercial arbitration-related cases, both domestic and international. Judges there frequently receive arbitration-specific training and are experienced in managing applications under the AMA. • Courts of Appeal and the Supreme Court – they hear appeals from lower courts, primarily on ques - tions of jurisdiction, procedural issues relating to arbitration, enforcement or setting aside proceed - ings. • The National Policy on Arbitration and ADR has urged Heads of Court to designate specified divi - sions for matters related to arbitration. Additionally, the Heads of Court have been urged to develop practice directions for the determination of these matters. 2. Governing Legislation 2.1 Governing Law Governing Legislation for International Arbitration in Nigeria Arbitration in Nigeria is governed by the AMA, which is substantially modelled on the UNCITRAL Model Law, incorporating its core principles to ensure procedural fairness, respect for party autonomy, and limited judi - cial intervention. Notably, the Act mirrors the Model Law’s approach to the finality of awards and provides a framework that supports party equality and the tri - bunal’s competence to rule on its own jurisdiction. While the Act retains the Model Law’s structure, it also introduces practical and innovative features designed to enhance Nigeria’s attractiveness as an arbitral seat, such as:
• Emergency arbitrators – the Act expressly provides for the appointment of emergency arbitrators, ena - bling parties to seek urgent interim relief before a tribunal is constituted – a modern addition that the original Model Law does not cover. • Third-party funding – another forward-looking innovation is the express recognition of third-party funding arrangements, subject to disclosure obli - gations to ensure transparency. • Award review tribunal – uniquely, the Act permits parties to agree to a review mechanism for arbitral awards before they become final, offering an addi - tional opportunity to address potential errors within the arbitral process itself rather than through court challenges. 2.2 Changes to National Law Recent Developments in Arbitration Law and Prospective Reforms Over the past year, Nigeria has already implemented the AMA which is the most transformative arbitration reform in recent history. This new legislation replaced the older Arbitration and Conciliation Act and repre - sented a major modernisation of Nigeria’s arbitration framework. The 2023 Act introduced several significant innova - tions, including clear provisions for emergency arbi - tration, third-party funding transparency, party-driven award review panels, and streamlined mechanisms for consolidation and joinder of proceedings. These measures align Nigeria more closely with international norms and enhance its competitiveness as a seat for both commercial and investment arbitration. The National Policy on Arbitration and ADR was adopted in October 2024. Notably, the commitments
contemplated by the Policy include: • an amendment of the RCICA Act;
• the introduction of model dispute resolution clauses for use in government contracts; and • prescribed timelines for the determination of court proceedings related to arbitration.
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