NATIONAL POLICY ON ARBITRATION AND ALTERNATIVE DISPUTE RESOLUTION ADR

What Is This Policy?

A comprehensive national policy approved by the Federal Executive Council in July 2024 to promote arbitration and alternative dispute resolution as preferred mechanisms for resolving commercial disputes, establish Nigeria as a regional arbitration hub, and reduce the burden on courts.

Who Does It Target?

Federal and State Ministries, Departments and Agencies (MDAs), businesses, investors, legal practitioners, arbitrators, mediators, and parties to commercial disputes.

What Does It Aim to Achieve?

Position Nigeria as Africa's leading arbitration hub, decongest the courts, promote ease of doing business, attract foreign investment, conserve foreign exchange spent on overseas litigation, and align Nigeria's arbitration framework with international standards.

Key Features

Nigeria as Arbitration Hub: Promotes Nigeria as the default seat and venue for arbitration by both MDAs and private institutions Small Claims Arbitration: Introduces simplified procedures for disputes up to N5 million covering debt recovery, breach of contract, landlord-tenant matters, and consumer rights 60-Day Court Timeline: Mandates courts to conclude arbitration-related proceedings within 60 days of filing; appeals within 270 days Appeals Terminate at Court of Appeal: All appeals from arbitration and ADR matters end at the Court of Appeal level Unified Code of Conduct: Encourages development of a unified ethical code for ADR practitioners ADR in Legal Education: Integrates arbitration and ADR into law school curricula and judicial training programs

Current Status

Rollout Stage: Active; unveiled by Federal Ministry of Justice in February 2025 Coverage: Nationwide; all Federal and State MDAs, private sector entities Duration: 5-year implementation period (2024-2028) with review thereafter Advisory Council: Composed of arbitration/ADR experts and the President of the Nigerian Bar Association Key Institutions: Regional Centre for International Commercial Arbitration Lagos (RCICAL), Federal Ministry of Justice

How to Access

The policy is accessible through the Federal Ministry of Justice and the Nigerian Bar Association. MDAs are required to adopt the template dispute resolution clause provided in the policy's Schedule. Legal practitioners can access the full policy document through official NBA communication channels.

Important Terms

The policy is recommendatory, not binding; it represents a statement of intent by the Nigerian Government Arbitrator appointments for claims above N50 million require Attorney-General approval Standard tribunal composition is 3 arbitrators unless parties agree to a sole arbitrator Nigerian counsel must be primarily engaged; foreign counsel requires AGF recommendation MDAs must maintain registers documenting all arbitration and ADR proceedings

Impact & Metrics

The policy aims to reduce Nigeria's World Bank Ease of Doing Business constraints, attract foreign direct investment, save foreign exchange spent on overseas arbitration, and build a robust domestic arbitration ecosystem. Nigeria reportedly moved up 39 places in the World Bank's Ease of Doing Business ranking following related reforms.

Official Resources

Website: justice.gov.ng Contact: Federal Ministry of Justice, Abuja; Regional Centre for International Commercial Arbitration Lagos (RCICAL)

Legal Framework

The National Policy on Arbitration and Alternative Dispute Resolution operates under the Arbitration and Mediation Act 2023, the Arbitration and Conciliation Act (as applicable), and the Administration of Criminal Justice Act 2015 (on plea bargaining as ADR). It aligns with the UNCITRAL Model Law on International Commercial Arbitration, the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards, and the OHADA Uniform Act on Arbitration applicable to ECOWAS member states.