• Friday, March 29, 2024
businessday logo

BusinessDay

Globalization of Nigerian law firms: How can smaller firms be better positioned?

png_20230309_144411_0000

Nigerian law firms have started to expand their reach and capabilities beyond the country’s borders. With the increasing demand for legal services across the world, law firms continue to look for ways to expand their reach and establish themselves as international players in the legal market. This trend has been driven by the increasing globalization of business and the need for legal services that can support international transactions.

The year 2022, saw two of Nigeria’s largest law firms firmly expanding their presence abroad by opening offices in Europe and Africa. Olaniwun Ajayi LP broke uncharted ground with the launch of its UK office while Templars, in “embracing Pan-Africanism”, marked its first international expansion by partnering with a Ghanaian law firm to establish Templars in Ghana.

The desire to attract international clients remains an important part of law firms seeking international reputations. As more businesses and individuals seek legal assistance for cross-border transactions and disputes, law firms must be able to offer expertise in different legal systems and cultural contexts. By opening offices in other countries, law firms can demonstrate their ability to provide high-quality legal services to clients from around the world.

In addition, globalization can offer a competitive advantage in the domestic market. As international law firms continue to enter Nigeria, local firms need to differentiate themselves by demonstrating their global reach and expertise. By expanding beyond the country’s borders, Nigerian law firms can position themselves as players on the global legal stage and attract clients who are seeking a more international perspective.

“We’ve always had significant interest in opening an Accra office, not only because we’ve got deep client connections across Africa, but also because, given our significant market share in Nigeria, we believe that our natural next step is going into other markets where our clients and business relationships require our services, says Oghogho Akpata, Managing Partner at Templars.
For Chuks Ibechukwu of Olaniwun Ajayi LP London office, “the development story behind an African law firm developing the capability to support clients on not only the Nigerian law aspects of projects in Nigeria, but any multi-jurisdictional or cross-border support that the clients may have, is incredibly compelling and I want to be a part of it.”

According to Ibechukwu, “Our strategy is client-centred. We succeed if our clients succeed. In line with this, our London office strategy responds to what we see as our client’s immediate needs and takes into account what we see as their direction of travel so that we can help them along.

Read also: Developments in Nigerian Tax Law 2022

These are significant steps in Nigeria’s legal industry given that what we saw prior to these were international law firms entering into the African market through alliances with law firms in Nigeria and other African countries to build an African market. First, it was DLA Piper, the multinational law firm securing a presence in Nigeria with its affiliation with Olajide Oyewole LLP.

Then closely followed by the London-based firm, Dentons’ combination with Adepetun, Caxton-Martins, Agbor & Segun – to form Dentons-ACAS in Nigeria.

Nigerian firms have also gained international presence, just like when Olisa Agbakoba Legal tied up with Capstone Legal, a dispute resolution and corporate advisory law firm in India to provide legal services to international clients; and Aluko & Oyebode joined the African law firm alliance ALN to bolster its cross-border and pan-African capabilities.

Being the largest and most established firms in the Nigerian market, tier-1 firms have the resources and expertise to compete with international firms and have already made significant investments in technology, talent development, and other areas that are necessary for globalisation. These firms have also established relationships with international firms and have experience working on international transactions.

So, they understand what it means in building an international brand. As for midsized and other smaller firms, they may be disadvantaged but here is how they can also leverage their abilities to build an international brand.

Smaller firms are limited as expanding into new markets requires significant investment in resources and infrastructure, such as hiring local staff, establishing partnerships, and complying with local regulations. In addition, navigating different legal systems and cultural norms can be complex and time-consuming, and requires significant expertise and knowledge, especially for firms that do not have the human capacity for expertise in many international and cross-border transactions.

However, building affiliations with international firms is still an option open to smaller firms. This will enable them to leverage the expertise of international law firms to better serve their clients, as they can gain access to knowledge and resources that they may not have had otherwise. Also, this can help small firms to expand their business opportunities beyond their local market and grow their client base and increase revenue. More so, there is improved credibility of the firms to attract new clients and build their reputation in the legal community.

In conclusion, the globalization of Nigerian law firms is a trend that reflects the growing importance of cross-border legal services and the need for firms to demonstrate global expertise. While there are challenges associated with expanding into new markets, the potential benefits for Nigerian law firms are significant. As the legal industry continues to globalize, Nigerian law firms must be proactive in adapting to the changing landscape and positioning themselves for success on the global stage.