NIGERIA Law and Practice Contributed by: Olasupo Shasore, Mofiyinfoluwa Enitan, Ibukun Fasoro and Bamidele Ikusika, Africa Law Practice NG & Company
As a result, multiparty disputes are often managed by consolidating separate arbitrations or through joinder 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 Section 62 of 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 inter - national practice. 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 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. Section 39 of the AMA allows for this. 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. 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. See EMTS Ltd v AFDIN Ventures Ltd & Ors (2026), LPELR-83327 (SC). National Courts and Foreign Third Parties Nigerian courts may recognise these doctrines when deciding whether a foreign third party should be joined to or bound by an arbitration agreement or award. However, the courts generally exercise caution and will only do so where the facts clearly establish legal grounds, to respect the principle of consent that underpins arbitration.
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