The Vice president of Nigeria, Prof. Yemi Osinbajo has stated that the existence of strong and effective dispute resolution mechanism is a crucial drive for economic growth and investment in Africa. This, he affirmed at the 3rd International Chamber of Commerce (ICC) Africa Regional Arbitration Conference, held at Civic Centre, Victoria Island, Lagos on the 18th day of June, 2018 in his remarks made by Dr. Jumoke Oduwole, Senior Special Assistant to the president on industry, trade and investment, office of the Vice President, who represented him. According to him, investors, whether domestic or foreign look beyond pure economic fundamentals, to require assurances of effective legal frameworks for Enforcement of awards and a credible judicial system, which gives them a reasonable level of comfort and confidence. He noted that arbitration is favoured by the business and investing community in Africa of its flexibility, relative speed, privacy and cost and that this, in turn, encourages investment flows and supports economic development, particularly in critical areas such as infrastructure. The Vice President further stated whilst talking on the theme, “THE VIABILITY OF INTERNATIONAL ARBITRATION IN AFRICA–‐THINKING GLOBALLY, ACTING LOCALLY” that following the expansion of global trade ad investments, there have been an increase of disputes in economic related activities. Therefore, ICC needs to do more to enhance its Position as the foremost worldwide trade organization by championing issues of diversity and regional representation in the arbitration community, or international arbitration as a dispute resolution will likely lose its credibility in this region the coming years. “In the past few decades, there has been an undeniable expansion in global trade and investments, resulting in significant increase in the volume of arbitration cases on the continent. Given the 253% in the rise Of Foreign Direct Investment in Africa from USD 6 billion in the mid–‐90s to what is today barely two decades later, and an estimated growth rate of the region at 2.4% for 20181, the case for investing in Africa remains strong. “As a natural by–‐product, there has been an increase in the number of international arbitration proceedings resulting from investment disputes involving African parties or interests, particularly in the mining, Oil and gas, telecommunications and construction sectors. “In its 2014 Statistical Report, the ICC noted that a record 113 parties from sub–‐Saharan Africa were involved in ICC arbitrations in 2014.2 However, whilst these arbitrations involve African parties or interests, most of these arbitrations have their seat outside Africa and sometimes do not involve African institutions, law firms or legal practitioners. “This situation is not peculiar to the African region. As a result, emerging economies have expressed concern about the perceived domination of international arbitration structures and practice by the northern hemisphere. Therefore, ICC needs to do more to enhance its Position as the foremost worldwide trade organization by championing issues of diversity and regional representation in the arbitration community, or international arbitration as a dispute resolution will likely lose its credibility in this region the coming years,” he said. Drawing the attention of the participants to the provision establishing the Dispute Settlement Body (DSB) in the recently executed African Continental Free Trade Agreement (AfCFTA), Mr. Osinbanjo encouraged all participants present to familiarize themselves with the provisions of the AfCFTA and invest in their skills to enable them register on the dispute settlement panels once they are formed. The Vice President whilst affirming certain reforms undertaken by most African Countries to bring them in tandem with international commercial realities, such as OHADA, he stated that more still need to be done to make African seats an attractive option for international investors. “It can, therefore, be boldly said that African economies are asserting their interests and rights by positioning themselves as international players to be reckoned with. Yet, clearly, much still needs to be done to make African seats an attractive option for international investors. African countries need to continually focus on making their investment climate arbitration friendly,” he said. He also said that Nigeria is fast becoming a leading seat of arbitration and the settlement of investment disputes between contractual parties. A synergy between Govt and the arbitration community can achieve a lot more – link enforcing contracts to arbitration reform, as the PEBEC is poised to collaborate with the arbitration community to do what is necessary to make Nigeria a more attractive seat. According to him, the current administration has been focused on delivering on economic growth for Nigeria. The Economic Recovery and Growth Plan (ERGP) were drawn to keep the economy on the path of sustainable economic growth and global competitiveness. “We have been working on key business climate reform for the last 24 months, to promote domestic and foreign investment through the Presidential Enabling Business Environment Council–‐ which is yielding impactful results. “It became a necessity to collaborate with the State Judiciaries to see to the improvement of the dispute resolution system. Invariably, this reform is set to boost investor confidence and reliance in the system as well as trade facilitation itself,” he added. The Vice president finally applauded Her Lordship, the Chief Judge of Lagos State, Justice Oke for the establishment of the Small Claims Courts in Lagos State in April 2018. According to him, the Lagos Judiciary collaborated with the Presidential Enabling Business Environment Council (PEBEC) on delivering this reform, towards creating an enabling business environment for Nigeria. “The specialized Magistrates and Court Officials have been trained to handle liquidated money demand claims of N5 Million and below, with a turnaround time of 60 days for the entire process from filing to judgment and that if we have a strong legal framework for arbitration, including judicial reform (which PEBEC can drive) there will be increased FDI as a country, and as a region”, he said.]]>

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