The Federal Government of Nigeria has unveiled the National Policy on Arbitration and Alternative Dispute Resolution (ADR) 2024, a groundbreaking initiative aimed at positioning Nigeria as a leading hub for arbitration and ADR in Africa and beyond.
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The policy, approved by the Federal Executive Council (FEC) on July 15, 2024, seeks to address longstanding challenges in Nigeria’s arbitration system, including inadequate infrastructure, lack of confidence in the system, and underdeveloped institutions.
In his foreword to the policy, the Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, SAN, emphasized the importance of the policy in transforming Nigeria’s legal and commercial landscape. He noted that the policy aligns with Nigeria’s international treaty obligations, including the UNCITRAL Model Arbitration Law, the New York Convention, and the Singapore Convention, and aims to foster a culture of fair, efficient, and effective dispute resolution.
“This policy represents a significant stride towards enhancing the legal and commercial landscape in Nigeria, positioning our nation as a leading hub for arbitration both regionally and internationally,” Fagbemi stated.
The National Policy on Arbitration and ADR 2024 is designed to:
- Promote Nigeria’s treaty obligations under international arbitration conventions.
- Encourage the growth and practice of ADR in Nigeria.
- Reduce the burden on the court system by promoting arbitration and ADR for commercial disputes.
- Enhance investor confidence by ensuring a robust and supportive environment for arbitration.
- Strengthen capacity for arbitration and ADR practitioners through training and public awareness.
The policy outlines several key interventions, including:
- Guidelines for Dispute Resolution Clauses: Federal and State Ministries, Departments, and Agencies (MDAs) are encouraged to adopt model dispute resolution clauses in contracts.
- Selection of Arbitrators: Clear criteria for the appointment of arbitrators, with preference for Nigerian arbitrators in international commercial arbitration involving government entities.
- Code of Conduct: Development of a unified code of conduct for arbitrators, counsel, and ADR practitioners.
- Regional Centre for International Commercial Arbitration (RCICAL): Strengthening the RCICAL to serve as a hub for arbitration in Nigeria.
- Small Claims Arbitration: Establishment of small claims courts to provide affordable and speedy resolution for disputes involving amounts up to N5 million.
The policy will be implemented over five years, with regular reviews to adapt to emerging trends in arbitration and ADR. An Advisory Council comprising arbitration experts, ADR practitioners, and the President of the Nigerian Bar Association (NBA) will monitor and evaluate the policy’s implementation.
To ensure the success of the policy, the Federal and State governments have committed to:
- Expanding ADR skills and knowledge among judicial officers and public officials.
- Introducing arbitration and ADR courses into the curriculum of law faculties and continuing legal education programs.
- Partnering with the private sector to promote the adoption of arbitration and ADR in commercial disputes.
The National Policy on Arbitration and ADR 2024 marks a significant milestone in Nigeria’s efforts to enhance its legal framework and attract foreign investment.
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