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Nigeria’s commercial arbitration landscape has undergone its most significant transformation in decades, and commercial arbitration lawyers in Nigeria are now advising clients within an entirely new statutory and policy framework. The Arbitration and Mediation Act 2023 (AMA 2023) replaced the decades-old Arbitration and Conciliation Act, modernising everything from the written-agreement requirement to interim measures and award enforcement. Simultaneously, the National Policy on Arbitration and ADR 2024–2028 has signalled a deliberate governmental push to position Nigeria as Africa’s leading dispute-resolution hub, with binding commitments affecting Ministries, Departments and Agencies (MDAs).
For General Counsel, in-house teams and external counsel drafting dispute-resolution clauses in 2026, this convergence demands immediate attention: legacy arbitration clauses may no longer protect parties the way they once did, and the window for renegotiation is now.
An effective arbitration clause under the current Nigerian framework must satisfy the AMA 2023’s written-agreement threshold, designate a clear seat of arbitration, specify governing law, and expressly provide for interim and emergency relief. To avoid delay, disruption and other unintended consequences, the following five-point checklist is recommended:
The Arbitration and Mediation Act 2023 is the primary statute governing arbitration in Nigeria. It substantially aligns Nigerian law with the UNCITRAL Model Law on International Commercial Arbitration, while introducing several Nigeria-specific innovations. Three features are essential for commercial arbitration lawyers in Nigeria advising on clause drafting and enforcement:
The National Policy on Arbitration and Alternative Dispute Resolution 2024–2028 is a binding policy directive that commits all federal MDAs to incorporate arbitration and ADR clauses into government contracts. For parties negotiating with Nigerian government entities or entering public-private partnerships, the Policy is a game-changer: it removes the historical reluctance of MDAs to submit disputes to arbitration and creates an expectation that arbitration will be the default dispute-resolution mechanism for commercial contracts involving the Federal Government.
Industry observers expect the Policy to accelerate institutional arbitration uptake across sectors including oil and gas, infrastructure and telecommunications, where government counterparties were previously resistant to binding arbitration commitments.
The AMA 2023 was deliberately drafted to align with the UNCITRAL Model Law on International Commercial Arbitration. This alignment means that international arbitration practitioners can apply familiar Model Law principles, party autonomy, limited grounds for court intervention, and recognition of interim measures, with confidence that Nigerian courts will interpret the AMA consistently with international standards. Nigeria’s ratification of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) ensures that foreign arbitral awards are recognisable and enforceable in Nigeria, subject to the limited grounds for refusal set out in Article V of the Convention.
A well-drafted arbitration clause is the foundation of any enforceable arbitration. The objective is to eliminate ambiguity, lock in the seat and governing law, enable emergency and interim relief, and anticipate potential challenges at the enforcement stage. Below are four template clauses covering common commercial scenarios, followed by a drafting checklist and a seat-selection matrix.
Template A, International Commercial Arbitration (Institutional)
“Any dispute arising out of or in connection with this Agreement shall be referred to and finally resolved by arbitration administered by [ICC / LCIA / Lagos Court of Arbitration] under its Rules in force at the date of the Request for Arbitration. The seat of arbitration shall be Lagos, Nigeria. The language of the arbitration shall be English. The tribunal shall consist of [one / three] arbitrator(s).”
Negotiation note: The foreign party often pushes for a neutral seat (London or Singapore); the Nigerian counterparty may insist on Lagos for convenience and local enforcement.
Template B, Domestic Seat with Express Enforcement Steps
“All disputes arising under this Agreement shall be settled by arbitration in Lagos, Nigeria under the Arbitration and Mediation Act 2023. The award shall be final and binding, and enforceable by leave of the High Court of Lagos State in accordance with the applicable Civil Procedure Rules.”
Negotiation note: This clause is preferred for purely domestic transactions; the express reference to the AMA 2023 and High Court enforcement streamlines post-award proceedings.
Template C, State / PPP Contract with Public Interest Safeguards
“Any dispute between the Parties shall be submitted to arbitration under the [Lagos Court of Arbitration / Nigerian Institute of Chartered Arbitrators] Rules. The seat shall be Abuja, Nigeria. Nothing in this clause shall prevent either Party from seeking urgent injunctive relief from a court of competent jurisdiction where public interest or safety requires immediate protection.”
Negotiation note: Consistent with the National Policy on Arbitration 2024–2028, this template addresses government counterparties’ concern about surrendering jurisdiction over public-interest matters.
Template D, Emergency Arbitrator, Interim Measures & Confidentiality
“Any dispute shall be resolved by arbitration under the [chosen institution’s] Rules, including its Emergency Arbitrator Provisions. The tribunal and any emergency arbitrator shall have power to grant interim, conservatory or provisional measures. All proceedings, materials and awards shall be confidential. The seat shall be [Lagos / London]. Either Party may apply to a court of competent jurisdiction for urgent interim relief pending constitution of the tribunal.”
Negotiation note: Parties in high-value supply chain or M&A transactions should insist on emergency arbitrator provisions and explicit confidentiality to protect commercially sensitive information.
Use this checklist when reviewing or drafting an arbitration clause for a Nigerian-seated or Nigeria-connected transaction:
Confusion between seat, venue and governing law remains the most common source of unenforceable arbitration clauses. The seat determines which courts exercise supervisory jurisdiction; the venue is merely the physical location of hearings; and the governing law controls the substantive rights of the parties. The following table provides a practical selection matrix:
| Seat (Jurisdiction) | Practical Effect | Drafting Tip |
|---|---|---|
| Lagos, Nigeria | Lagos High Court or Federal High Court exercises supervisory jurisdiction; convenient for domestic enforcement; Lagos High courts have significant arbitration experience but greater involvement risk |
Use express language limiting court intervention to grounds permitted under the AMA 2023; specify that the tribunal has exclusive jurisdiction on procedural matters |
| Abuja (FCT), Nigeria | Federal High Court or FCT High Court supervises; preferred for government/MDA contracts under the National Policy | Reference the FCT Civil Procedure Rules for enforcement; ensure MDA arbitration clause aligns with National Policy requirements |
| London / Singapore / Paris | Strong international enforcement culture; neutral forum; limited grounds for court interference; foreign parties prefer | Specify that Nigerian courts shall not exercise supervisory jurisdiction; include a waiver of sovereign immunity if a state party is involved; confirm New York Convention enforcement route |
| Ad Hoc (UNCITRAL Rules) | Maximum flexibility; no institutional fees; but tribunal conduct and timelines may be less predictable | Designate an appointing authority (e.g., PCA at The Hague); reference UNCITRAL Arbitration Rules; specify a clear procedure for arbitrator challenge |
The AMA 2023 recognises the power of tribunals to grant interim measures, and most leading institutional rules now provide for emergency arbitrator (EA) appointments. An EA can typically be appointed within 24–48 hours and issue binding interim orders within days, significantly faster than court proceedings. To enable the EA mechanism, the arbitration clause must expressly incorporate the institution’s emergency arbitrator provisions or, in ad hoc arbitration, include bespoke emergency-appointment language.
Under the AMA 2023, a party may apply to a Nigerian court for interim relief before the tribunal is constituted, without waiving its right to arbitrate. The application is typically made by originating motion or ex parte motion at the High Court. Courts may grant injunctions, preservation orders, and asset-freezing orders (analogous to Mareva injunctions) where the applicant demonstrates urgency, a prima facie case, and potential irreparable harm. Understanding the procedure for service of court processes under Nigerian law is critical for timely filing.
When interim relief is needed, the choice between court, emergency arbitrator and full tribunal depends on three factors:
| Factor | Court (Nigerian) | Emergency Arbitrator / Tribunal |
|---|---|---|
| Availability pre-tribunal | Yes, courts retain jurisdiction to grant urgent interim relief by originating motion or ex parte application | Yes, if the arbitration clause incorporates EA provisions and the institution permits |
| Speed | Variable: ex parte orders can be obtained within hours, but inter partes hearings may take weeks | Typically faster for inter partes orders (EA appointment within 24–48 hours under most rules) |
| Enforceability | Directly enforceable as a court order within Nigeria; binding on banks and third parties | EA orders may require court recognition for enforcement against third parties or assets |
| Confidentiality | Court proceedings are generally public unless a confidentiality order is obtained | EA and tribunal proceedings are typically confidential under institutional rules |
| Risk of litigation creep | Higher: the respondent may use the court application to challenge jurisdiction or seek stay | Lower: keeps the dispute within the arbitral framework |
Under the AMA 2023, a domestic arbitral award may be enforced by leave of the court. The practical enforcement route, governed by the applicable High Court Civil Procedure Rules (such as the Lagos State CPR 2019), typically involves the following steps:
For a deeper walkthrough of the enforcement procedure, see our guide on how to enforce arbitral awards in Nigeria.
Nigeria is a signatory to the New York Convention, which obligates Nigerian courts to recognise and enforce foreign arbitral awards. The applicant must file at the High Court and provide:
The court may refuse enforcement only on the limited grounds set out in Article V of the New York Convention, including incapacity of a party, invalidity of the arbitration agreement, denial of due process, the award dealing with matters beyond the scope of the arbitration agreement, improper composition of the tribunal, or that enforcement would be contrary to Nigerian public policy.
The AMA 2023, mirroring the UNCITRAL Model Law, limits the grounds on which a court may set aside an arbitral award. These grounds are exhaustive:
The high-profile litigation involving a foreign company’s attempt to enforce a multi-billion-dollar award against Nigeria demonstrated the practical and reputational risks of enforcement proceedings, particularly where fraud or public-policy issues are alleged. Industry observers expect Nigerian courts to apply the public-policy ground narrowly and consistently with international standards, but parties should be aware that the ground remains available and will be invoked where there are credible allegations of procedural irregularity or fraud in the arbitral process.
Tax and revenue disputes occupy a grey zone under Nigerian arbitration law. While the AMA 2023 does not expressly exclude tax disputes from arbitration, Nigerian courts have historically regarded matters involving government revenue and fiscal obligations as non-arbitrable on public-policy grounds. The practical advice for commercial arbitration lawyers in Nigeria is to avoid submitting core tax-assessment or revenue-collection disputes to arbitration. Instead, confine arbitration clauses to commercial disputes arising from the contract, and expressly carve out regulatory and tax-assessment matters for resolution through the relevant statutory bodies or courts.
The AMA 2023 does not impose a blanket statutory duty of confidentiality. Parties seeking to protect commercially sensitive information must include express confidentiality provisions in the arbitration clause or a separate confidentiality agreement. Given Nigeria’s evolving data-protection framework (see our guide on how to appoint a Data Protection Officer in Nigeria), clauses should also address data-handling obligations for evidence and personal data disclosed during arbitration.
Arbitration costs vary significantly depending on the institution, the amount in dispute and the complexity of the case. Parties should request fee schedules from their chosen institution and agree costs-allocation principles in the arbitration clause. Early costs budgeting and a mechanism for security for costs can prevent disputes over costs from derailing the arbitration itself.
The following four clauses are designed to be copied directly into commercial agreements and adapted to specific transaction requirements:
Use this ten-point checklist before executing any contract containing an arbitration clause connected to Nigeria:
The combination of the Arbitration and Mediation Act 2023 and the National Arbitration Policy 2024–2028 has created the most favourable environment for commercial arbitration in Nigeria’s history. For General Counsel and contracts teams, the practical imperative in 2026 is clear: audit existing arbitration clauses against the AMA requirements, adopt model clauses that expressly address seat, governing law, emergency relief and confidentiality, and prepare enforcement and interim-relief strategies that account for both court and tribunal pathways. Experienced commercial arbitration lawyers in Nigeria can guide organisations through each of these steps, from clause negotiation through to award enforcement, ensuring that dispute-resolution provisions are not merely contractual boilerplate but genuinely protective commercial instruments.
This article was produced by Global Law Experts. For specialist advice on this topic, contact Ade Ipaye at Vantage Attorneys LP, a member of the Global Law Experts network.
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