The National Policy on Arbitration and Alternative Dispute Resolution (ADR), 2024, approved by the Federal Executive Council (FEC) on July 15, 2024, aims to establish Nigeria as a preferred venue for arbitration and other forms of alternative dispute resolution.
Goal and Purpose:
* Goal: Establish fundamental principles to guide Federal and State governments’ participation in arbitration references, position Nigeria as an attractive arbitration hub for domestic, regional, and international commercial arbitration, and protect national interests.
* Purpose: Promote the growth and practice of ADR in Nigeria, encourage a judicial culture that supports arbitration and ADR, and complement efforts to stimulate the Nigerian economy and attract foreign investment. The policy also promotes the implementation of Nigeria’s treaty obligations under various International Arbitration Conventions, including the UNCITRAL Model Arbitration Law and Mediation Law.
Scope:
The policy covers domestic commercial arbitration, international commercial arbitration, and Alternative Dispute Resolution.
Key Thematic Areas and Interventions:
* Selection of Arbitrators: In international commercial arbitration involving Federal/State Ministries, Departments, and Agencies (MDAs), the Honourable Attorney-General of the Federation (HAGF) or State (HAG) may request the Regional Centre for International Commercial Arbitration (RCICAL) to appoint suitably qualified Nigerian arbitrators. Claims above N50 million require the approval of the HAGF/HAG for arbitrator appointments.
* Engagement of Counsel: A clear and transparent process for engaging Nigerian counsel in arbitration and ADR is mandated. Foreign counsel, if engaged, must partner with Nigerian counsel to facilitate hands-on experience.
* Role of Courts: Courts are encouraged to comply with directives to fast-track proceedings and efficiently determine arbitration-related matters. Judicial proceedings arising from arbitration and ADR should be determined within 60 days from the date of filing. All appeals from arbitration/ADR matters are to terminate at the Court of Appeal.
* Small Claims Arbitration: This is designed to facilitate access to justice, dealing primarily with claims not exceeding Five Million Naira (N5,000,000.00) for debt recovery, breach of contracts, landlord and tenant matters, and consumer rights issues. The entire proceeding from filing to judgment should not exceed sixty days.
* Implementation and Review: The policy shall be implemented for five years and then reviewed. The HAGF/HAGs of the State are responsible for ensuring effective implementation.