For Nigeria to achieve a seat of arbitration in Africa and attract needed foreign investments, experts say the country must tackle the challenging issues around her judicial processes that unduly prolong cases and frustrate dispute resolution.
The experts in their various summations at the Nigerian Institute of Chartered Arbitrators’ conference held in Lagos said that the greatest hindrance to Nigeria’s attainment as a centre for Arbitration is its precedent in poor resolution processes which has forced businesses to take their arbitration cases outside the country.
They stated that the country’s lack of modern infrastructure, and weak track record in enforcing court judgements has impacted the country’s push for attaining arbitration seat in Africa and globally.
Speaking during a panel session on the topic ‘Transformation and Intervention: The evolving trends in Arbitration and ADR practice in Africa,’ Wale Babalakin, principal partner, Babalakin and Co, said a recent report showed that 60 percent of cases in Nigeria’s courts were treated based on procedural issues without dealing with the substance.
He said that undue procedural delays and countermotions in most dispute cases in court reflect a failure of Nigeria’s judicial system which has to be addressed urgently.
Babalakin called for an attitudinal change of all stakeholders in the arbitration process in the country, noting that without attitudinal change, arbitration in Nigeria would be reduced to a preliminary issue.
He urged arbitrators to display a very high level of competence that will then develop a reputation that arbitral awards in Nigeria are well-researched and well-decided.
Emilia Onyema, Independent International Arbitrator, and professor of International Commercial Law at SOAS University of London, said the interventionist stance of Nigerian courts continues to frustrate the Arbitration process.
She said the Nigeria courts are not supportive of the Arbitration process which has prevented businesses and disputing parties from choosing Nigeria as an arbitration seat.
Onyema said the 2024 Arbitration in Africa survey conducted shows that Nigeria is listed as one of the most interventionist and unfriendly countries for arbitration.
She called on Judges and Lawyers to step up in their approach to arbitration by providing the statistics as this will bring some sanity into the way arbitration is practised within the country.
Read also: Maintaining balance in parties’ interests would remove lopsidedness in Arbitration outcomes – Ajogwu
The university professor further called on the Nigerian judiciary system to move away from ad hoc arbitration to institutional arbitration as this is a standard practice in dispute resolution.
Enga Kameni, senior manager, of the African Export-Import Bank, said across the continent, businesses are beginning to realise the importance of arbitration as a mediation option for dispute resolution.
He observed that there is a significant deeply; game-changing activity going on in the continent which is the African-Continental Free Trade Agreement as this agreement specifically has a particular protocol on arbitration.
“We need to read that and understand and see how we can take advantage of the opportunities that this particular protocol gives and also how we can advocate of the enforcement and implementation of the current rules of arbitration,” he said.
In his opening remarks at the conference, Fabian Ajogwu, president of the Nigerian Institute of Chartered Arbitrators said the conference has become a centre point in ADR and serves as a significant forum for addressing the pivotal issues shaping the arbitration profession, playing a crucial role in propelling the practice of arbitration and ADR to new heights across the West African sub-region and globally.
Ajogwu said the conference unites a diverse assembly of thought leaders, respected professionals, ADR experts, and emerging talents, fostering a dynamic environment for exchanging ideas, and building networks.
According to him, the conference themed, ‘Transformation and Interventions: The Evolving Trends in Arbitration and ADR Practice in Africa’ is timely and significant. Whether local or international, transformations introduce disruptions and innovations to existing processes, necessitating proactive interventions by governments, institutions, and key stakeholders.
“These interventions in regulatory, structural, and strategic matters are essential for addressing the unique challenges posed by evolving trends. They may encompass process development, comprehensive reviews, or targeted reforms that promote best practices, inclusivity, and sustainability,” he said.
Ajogwu further said that by strategically harmonising and integrating these diverse elements, Arbitrators can catalyse dynamic shifts, foster impactful partnerships, and ultimately redefine the ADR and arbitration landscape to be more inclusive, innovative, and resilient for the future.
“NICArb stands at the forefront of this transformative effort, collaborating closely with key stakeholders, including the Organisation for the Harmonization of Business Law in Africa (OHADA), to bridge the gap between common law and civil law jurisdictions, promoting regional integration within the Arbitration and ADR industry”.
“This initiative has the potential to reshape the African dispute resolution framework, fostering greater cooperation and synergy across diverse legal traditions and facilitating the development of a more unified, effective, and forward-looking ADR and arbitration ecosystem on the continent,” he added.
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