Department of Private and Business Law

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    THE CHALLENGES AND PROSPECTS OF ARBITRATION IN NIGERIA
    (FACULTY OF LAW, NASARAWA STATE UNIVERSITY, KEFFI, 2017-11-24) Kuforiji, Olamide Victoria
    Disputes by nature constitutes an inevitable portion of daily human endeavor. Disputes are likely to art from different human transactions ranging from economic activities, family relationships and neighborhood activities and other social relationships such as international relations, religious and other civil activities, sports activities among people or countries, commercial and agricultural relations. When disputes arise, there are several options available to parties in a dispute. Parties may decide to take unilateral action by way of self-help, or may seek legal remedy in court or both parties may decide to work it out together and search for a solution to their problems. However in settling their disputes, parties resort to litigation which is the major process for dispute resolution or alternatively adopting the method of Alternative Dispute Resolution (ADR) processes such as Arbitration, Conciliation, Negotiation, Mediation, Neutral Evaluation, Mini trial. But in this paper, the focus on Arbitration of which has some common features with litigation. Thus, Arbitration is a process by which a dispute between two or more parties, as to their legal rights and liabilities is referred to and determined judicially and with binding effect through the application of law by one or more persons (Arbitral Tribunal) instead of a court of law. The Arbitration and Conciliation Act (ACA) provides that the range of relationships for which arbitration may be employed to resolve disputes that arise under them include transaction for the supply or exchange of goods or services, distribution agreement, commercial representation or agency, factoring, leasing, construction of works, constructing, engineering licensing, investment ,financing, banking, insurance, exploitation, agreement or concession, joint venture and other forms of industrial or business cooperation, carriage of goods or passengers by air, sea, rail, or road. Increasingly Arbitration has been accepted by various countries to resolve commercial disputes and the disputes stated above but there are some challenges or mitigating factors which have slowed down the effectiveness of arbitration process. The aim of this paper is to promote the effectiveness of Arbitration as one of the key mechanisms appropriate for resolving disputes. The objectives of this work are: to identify the challenges that can cause the ineffectiveness of Arbitration process and the effects of the application of laws and rules, the courts intervention, the Government influence or policies, the parties autonomy, the business society and the society at large in arbitration process. Some of the challenges enumerated in this work are: Parties lack of trust in the arbitrators or counsels from the developing countries especially in matters relating to international commercial arbitration has mitigated the practice of Arbitration in Nigeria. Also, lack of transparency of arbitration proceedings, Lack of special training for Arbitrators and separate training for counsels in arbitration. The problem of enforcing a foreign award is one of the pressing challenge that has discouraged the practice of Arbitration. The decision made in an arbitration or the enforcement is influenced by the Government policies (whether harsh, favorable to parties or not) and the business community status. Also these challenges have some effects on the society at large either positive or negative. This paper also gave some recommendations which are the prospects in reducing the challenges faced in arbitration and creating a good atmosphere in the practice of arbitration. All these issues leading to the challenges shall be discussed in this paper. The research is conducted by doctrinal approach and the sources of acquiring information are through the primary and secondary sources of information such as statutes, law reports, textbooks‟, journal, online journals, case laws etc.