An Examination of Courts’ Support for Arbitration Proceedings in Nigeria

Description

ABSTRACT

An Examination of Courts’ Support for Arbitration Proceedings in Nigeria

Deinma Dibi*

The commercial industry has for years now, and in more recent times, been thriving with arbitration, majorly as a preferred mechanism for the settlement of commercial disputes. Because arbitration as a dispute settlement mechanism does not by itself have the power of enforcement, state mechanisms have been put in place to ensure the efficiency and compliance with the arbitration process. In Nigeria, the arbitration procedure is governed by the Arbitration and Conciliation Act (ACA). Over the years, several cases have sprung up, where the courts have had to intervene in ensuring compliance with arbitration proceedings. This article seeks to examine specific relevant provisions of the ACA vis-a-vis the courts’ intervention in prompting arbitration as an optimistic mechanism for resolving commercial disputes in Nigeria.

Keywords: Courts Support, Arbitration, ACA, Nigeria, Commercial disputes, Dispute settlement mechanism

INTRODUCTION
Business relationships are often regulated by law, making it almost impossible to resolve a dispute in totality without the involvement of state mechanisms. While parties in disputes have sought convenient modes for the settlement of their disagreements without adversely affecting business relationship, arbitration has been recognised as a standard mode for settlement of disputes, especially in the commercial sector.₁

Granted that arbitration is flexible, speedy, private in nature, and convenient for parties, and the fact that it does not ordinarily involve national courts,₂ national courts have nonetheless played several roles in ensuring the efficacy and efficiency of the arbitration process. While some writers have described this as an interference by the courts,₃ other writers have argued that this shows the Court’s supporting role in promoting arbitration.₄

 * LL.B, BL, LL.M (University of Aberdeen, Scotland). Associate, Perchstone and Graeys (Solicitors, Advocates, and Arbitrators). The author is an Associate member of the Chartered Institute of Arbitrators UK (ACIarb) and a member of the Institute of Chartered Mediators and Conciliators (ChMc).

1. Oluwakemi O Oke, ‘The Enforcement and Challenge of International Arbitration Awards in Nigeria’ (2015) 1  accessed 27 February 2021.
2. Modupe Otiode, ‘Nigerian Courts Demonstrate Resolve in Promoting Arbitration’ (2015)1 accessed 27 February 2021.
3. Chinwe A Mordi, ‘An Analysis of National Courts Involvement in International Commercial Arbitration; Can International Commercial Arbitration be Effective without National Courts?’ (2016) 6 Open Journal of Political Science 95-104  accessed 27 February 2021.
4. ibid (n 2).
   

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.12 NO.1