Chartered Arbitrators Urge FG to Strengthen Alternative Dispute Resolution Mechanism

Dike Onwuamaeze

The Nigeria Institute of Chartered Arbitrators (NICARB) has asked the federal government to put in place frameworks that would ensure that matters arising from commercial contracts that opt for arbitration as preferred dispute resolution are referred to Alternative Dispute Resolution (ADR) mechanism.

The request was made by the Registrar/Chief Executive Officer of NICARB, Ms. Shola Oshodi John (FCArb), when she briefed journalists on the upcoming 2023 Annual Arbitrators Conference that would take place in Abuja between November 15 and 17, 2023.

The theme of the conference is, “Repositioning Arbitration and ADR Practice in Africa: Unlocking the Continent’s Dispute Resolution Potential.”

Oshodi-John, said during the briefing that arbitration could earn the country foreign exchange if the government should invest resources in developing Nigeria’s ADR process and institutions, especially now that the African continent is set for the full implementation of the African Continental Free Trade Area (AfCFTA) agreement.

She said: “If parties put an arbitration clause in their contract before commencing business transaction, once a dispute arises from the contract the courts should send them to ADR for arbitration.

“If we have courts emphasising this, and ensuring that matters that have been arbitrated are referred back to arbitrating institutions to handle, a lot of matters that lie in courts will no longer be there.”

Oshodi-John explained that the essence of arbitration was for speedy resolution of disputes and warned that dragging a matter that had been resolved by an arbitration panel up to the Supreme Court would defeat the purpose of arbitration.

She added that, “people do not embrace arbitration because it lacks ability to be the final, which it ought to be, but has been abused. 

“So there has to be a policy change to ensure that arbitration matters that end up at appeal courts are dealt with at certain fixed period. That way, the winner of arbitrational hearing will have the dividend. Because when the matter ends up in Supreme Court and last for say 15 years, it is like everything you have worked for, and even the reason you went to arbitration has been defeated.”

The registrar stated that arbitration was a money spinner that Nigeria had not been able to tap into it even though some African countries like Rwanda, Kenya and South Africa, among others, were becoming arbitration destinations because they have created enabling environment for parties, including international investors, to resolve their disputes in their countries.  

According to her, “ADR should be developed and encouraged by the government and should not be left for individual institutions like us.

“This should be in the government’s interest because when it comes to AfCFTA, which is all about promoting trade within the African continent, promoting arbitration should mean that a lot of arbitrations that should have been taken outside Africa will stay in Africa. So, the money will stay in Africa and the expertise will be developed in Africa.”

A Fellow of the NICARD, Mrs. Olufunmilola Odunlami Commercial (FCarb), said government should have infrastructures that should give outsiders confidence to come into the country for ADR services.

“But if the government is lackadaisical to arbitration it is not going to give any foreigner the confidence to come to the country. So we need the government to support arbitration with actions,” Odunlami said.