How to Appoint, Challenge and Remove Arbitrators in Nigeria, Procedure Under the Arbitration & Mediation Act 2023

To appoint arbitrators Nigeria practitioners must now work within the framework of the Arbitration & Mediation Act 2023, which repealed and replaced the long-serving Arbitration and Conciliation Act and modernised the mechanics of constituting, challenging and removing arbitral tribunals. This practice note sets out the procedure step by step, the appointment routes available, the statutory grounds and time limits for challenge, the court’s role in removal, and the documents, timelines and costs involved. It is written for in-house counsel, external counsel and arbitral users who need working guidance rather than a summary. Because the 2023 Act is still being tested through the courts, this guide also flags the emerging practice points that matter through 2026 and beyond.

1. Overview: purpose and scope of this guide

This guide explains, in practical terms, how to appoint arbitrators Nigeria disputes commonly require, how to challenge one whose impartiality or capacity is in doubt, and how to remove one who cannot or will not perform. The governing instrument is the Arbitration & Mediation Act 2023, which draws heavily on the UNCITRAL Model Law and consolidates party autonomy as the organising principle of Nigerian arbitration. The Act applies to both domestic and international commercial arbitration seated in Nigeria, subject to any contrary agreement between the parties on matters the Act permits them to vary.

When this guide applies

This note applies where the seat of arbitration is in Nigeria, or where a Nigerian court is asked to intervene in the constitution of a tribunal, for example, to make a default appointment or to hear a challenge or removal application. It covers ad hoc arbitration, institutional arbitration under adopted rules, and hybrid arrangements. Where the parties have adopted institutional rules (for example ICC or LCIA rules), those rules will usually govern appointment and challenge mechanics, with the Act operating as the supportive legal framework and the source of curial (court) jurisdiction.

Limits and disclaimers

This is a practice note, not legal advice. Every arbitration turns on its own facts, its arbitration agreement and the applicable institutional rules. Statutory section numbers, court fee scales and institutional fee schedules change; always confirm the current position against the official text of the Act and the relevant registry or institution before acting. Where urgency or significant sums are involved, obtain bespoke advice from qualified Nigerian counsel.

2. Eligibility: who may be appointed and who may challenge

Who can be an arbitrator

Under the Act the guiding principle is party autonomy: the parties are generally free to agree who may sit and the qualifications an arbitrator must hold. Beyond any contractual qualifications, an arbitrator must be a natural person who is, and remains, impartial and independent, and who is able to devote sufficient time to the reference. No person is disqualified merely by nationality unless the parties have agreed otherwise. Corporate bodies cannot themselves sit as arbitrators, though an institution may administer the process and appoint qualified individuals.

When you appoint arbitrators Nigeria practice expects each candidate to make a full and continuing disclosure of any circumstances likely to give rise to justifiable doubts as to impartiality or independence. That disclosure duty is central to the eligibility assessment and continues throughout the reference, an arbitrator must disclose new circumstances as they arise, not only at the point of appointment.

Who can apply to challenge or remove

The right to challenge belongs to the parties. A party may challenge an arbitrator it has appointed, or in whose appointment it participated, only for reasons of which it becomes aware after the appointment. Co-arbitrators and the tribunal itself do not “challenge” in the formal sense, but a presiding arbitrator will often case-manage a challenge and the tribunal may rule on it where the rules or the Act so provide. Removal applications, as distinct from challenges, are made to the competent court by a party, typically where the arbitrator is unable to act, fails to act without undue delay, or where a challenge that ought to have succeeded has not been upheld internally.

3. Step-by-step procedure to appoint arbitrators Nigeria disputes require

This is the core practical section. It walks through the appointment routes, the mechanics of documenting an appointment, and the challenge and removal procedures. The mandatory tables below give you the routes at a glance and an indicative calendar.

A. Starting the process: notice and appointment by the parties

1. Serve the Notice / Request for Arbitration. The claimant (or the party seeking to constitute the tribunal) serves a notice of arbitration identifying the dispute, the arbitration agreement relied on, and the relief sought. Where the agreement provides for a specific appointment mechanism, follow it exactly.
2. Nominate under the clause. For a three-member tribunal each side typically nominates one arbitrator; the two party-nominees then agree the presiding arbitrator. For a sole arbitrator the parties attempt to agree jointly. Serve a written appointment letter recording the nomination.
3. Obtain acceptance and disclosure. The nominee provides a signed letter of acceptance, a declaration of impartiality and independence, and a written disclosure of any potentially disqualifying circumstances. Do not treat the appointment as complete until acceptance and disclosure are in hand.
4. Confirm constitution. Once all members have accepted, circulate a note confirming the tribunal is constituted and inviting the first procedural conference. Keep proof of service of every step.

B. Institutional appointment

Where the arbitration agreement names an institution (for example the ICC or LCIA), appointment follows that institution’s rules, which the Act supports rather than displaces.

5. File the request with the institution. Lodge the request for arbitration and pay the filing fee. The institution registers the case and sets the appointment process in motion.
6. Nomination and confirmation. The parties nominate; the institution confirms or, where a nominee is not confirmed, appoints. Institutions maintain vetted panels and apply their own conflict-checking, which reduces the risk of a later successful challenge.
7. Scrutiny of independence. The institution reviews disclosures and may decline to confirm a nominee whose independence is in doubt. Constitution is complete when the institution notifies the parties.

C. Court appointment under the Act

Where a party defaults, the parties deadlock, or the clause is silent on how to proceed, the Act provides a curial fallback so that recalcitrance cannot defeat the arbitration.

8. Trigger the fallback. Confirm that the contractual or institutional mechanism has failed, for example, a respondent has not nominated within the agreed period, or the two party-nominees cannot agree a chair.
9. Apply to the competent court. File an originating application to the appropriate High Court (Federal or State, per the Act and the seat) seeking an order appointing the arbitrator or chair. Support it with the arbitration agreement, evidence of the default, and a proposed candidate or criteria.
10. Court considers autonomy and neutrality. The court appoints having regard to the qualifications required by the agreement and the need for an independent and impartial arbitrator. In international matters the court will also weigh the advisability of appointing an arbitrator of a nationality other than those of the parties.
11. Finality. A court decision on an appointment of this kind is generally not subject to appeal, reflecting the Act’s aim of preventing tactical delay. The tribunal is then constituted and can proceed.

D. Constituting multi-party and multi-contract tribunals

Multi-party references complicate the neat “one nomination each” model. Where multiple claimants or respondents cannot agree a joint nominee, the fallback (institutional or court) is engaged to make the appointment for the defaulting side, and, under many modern rules, the appointing authority may constitute the entire tribunal to preserve equality between the parties. When you appoint arbitrators Nigeria multi-contract disputes require, address consolidation and joinder in the drafting stage; retrofitting agreement after a dispute has crystallised is difficult and invites challenge.

E. How to document the appointment

Good documentation prevents disputes about whether and when a tribunal was validly constituted. At a minimum, keep on file: the appointment letter, the arbitrator’s signed acceptance, the declaration of impartiality and independence, the written disclosure statement, and (where applicable) the terms of reference or first procedural order confirming constitution. A sample appointment letter reads, in essence: “On behalf of [Party], and pursuant to clause [X] of the [Contract] dated [date] and the Arbitration & Mediation Act 2023, we hereby nominate you as [sole arbitrator / party-appointed arbitrator]. Please confirm your acceptance, independence and availability, and disclose any circumstances that might give rise to justifiable doubts as to your impartiality.”

F. Challenge procedure: grounds, timing and evidence

A challenge is the mechanism to remove an arbitrator whose impartiality, independence or qualifications are in doubt, without collapsing the reference. To challenge arbitrator Nigeria disputes require, follow this sequence:

1. Identify the ground. The two statutory grounds are (i) justifiable doubts as to the arbitrator’s impartiality or independence, and (ii) the arbitrator not possessing the qualifications agreed by the parties.
2. Act promptly. Send a written statement of the reasons for the challenge to the tribunal within the statutory window after constitution of the tribunal or after becoming aware of the ground. Delay can amount to waiver.
3. Serve and support. Serve the challenge on the other party and all tribunal members, supported by evidence of the facts relied on (correspondence, disclosures, prior appointments, relationships).
4. Internal decision first. Unless the challenged arbitrator withdraws or the other party agrees to the challenge, the tribunal decides it in the first instance (or the institution decides, under adopted rules).
5. Escalate to court if refused. If the challenge is not successful, the challenging party may within the statutory period apply to the competent court to decide the challenge. The arbitration may continue and an award may be made while that application is pending, which is a deliberate anti-delay feature.

G. Removal procedure: court application and evidence

Removal is distinct from challenge. To remove arbitrator Nigeria proceedings sometimes require a court application where the arbitrator becomes de jure or de facto unable to perform, or fails to act without undue delay, and the parties cannot agree on termination of the mandate.

1. Confirm the ground. Inability to act (illness, incapacity, conflict) or persistent failure to act (undue delay in progressing the reference or delivering an award).
2. Attempt agreement. The parties may agree to terminate the mandate; document it in a consent order to avoid later argument about the substitution.
3. Apply to court. Where there is no agreement, apply to the competent court for a decision on termination of the mandate, supported by affidavit evidence of the facts, the arbitration agreement, and the relevant correspondence.
4. Substitution. Once the mandate ends, a substitute arbitrator is appointed following the same rules that applied to the original appointment, and the reconstituted tribunal gives directions on whether earlier hearings are repeated.

Appointment routes compared

Indicative timeline: step, who acts, duration

Durations are practical estimates only and vary with court lists, institutional workload and the urgency of the matter.

Tactical points and the emergency arbitrator

Two tactical themes recur. First, on emergency arbitrator Nigeria practice, the Act recognises interim measures and the parties can incorporate institutional emergency arbitrator rules to secure urgent relief before the full tribunal is constituted; alternatively, urgent court relief remains available and is not treated as inconsistent with the agreement to arbitrate. Second, watch parallel proceedings: a pending challenge does not automatically stay the arbitration, so if you consider a challenged arbitrator should not sit, seek a direction or a short stay rather than assume the reference is paused.

4. Required documents: what to file

Templates to keep on hand

• Appointment letter. Recording the nomination, the clause and Act relied on, and the request for acceptance and disclosure.
• Disclosure statement. A structured declaration covering relationships, prior appointments and any potential conflicts.
• Application notice. For a challenge or removal, framed around the statutory ground.
• Affidavit in support. Setting out the facts, exhibiting the correspondence and disclosures, and proving service.

5. Timeline and deadlines under the 2023 Act

Statutory timelines

The Act sets defined windows to keep the process moving. A challenge must be raised within the statutory period after the tribunal is constituted or after the challenging party becomes aware of the ground, whichever is later; where the internal challenge fails, the party has a further statutory period within which to ask the court to decide it. Default appointment applications, once the contractual mechanism has failed, should be filed promptly to avoid arguments about waiver or acquiescence. Because the exact periods and the identity of the “competent court” turn on the precise statutory provisions and the seat, confirm the current section numbers and periods against the official text of the Arbitration & Mediation Act 2023 before you file.

Practical calendar for a typical challenge

In practice, a challenge unfolds over roughly six to twelve weeks: the written challenge is served within days of the ground emerging; the other party responds and the arbitrator may comment or withdraw within one to two weeks; the tribunal or institution decides within a few weeks; and if refused, a court application is filed and listed. Where electronic filing and service are available at the relevant registry, build in confirmation of receipt and keep proof of service, service defects are a common and avoidable ground of dispute.

6. Costs and fees

All figures are estimates. Obtain the applicable institutional fee schedule and the current court fee scale for exact amounts. Budget realistically: challenges and removals add cost and delay, so weigh the tactical value of a challenge against its price and its effect on the timetable. Where security or funding is relevant, consider whether the tribunal has power to order security for costs and how any funding bond will be structured.

7. What changes in 2026: emerging case law and practice

Key developments to watch

Because the Arbitration & Mediation Act 2023 is comparatively new, the appellate courts are progressively defining how its appointment, challenge and removal provisions operate in practice. Industry observers expect the courts to continue emphasising party autonomy and to read the anti-delay features, such as the arbitration continuing during a pending challenge, purposively. Early indications suggest a firm judicial reluctance to allow challenge and removal applications to be used as tactical delaying devices, consistent with the Act’s pro-arbitration architecture and its Model Law lineage.

Practical implications for users

The likely practical effect is that well-documented disclosures and prompt, evidence-based challenges will fare better than late or speculative ones. Parties who appoint arbitrators Nigeria disputes require should therefore invest at the front end, thorough conflict checks, clear qualification requirements in the clause, and disciplined record-keeping, because that is where challenges are won or lost. Confirm any decision you intend to rely on against the official judgments databases, as the case law is still accumulating.

8. Common pitfalls and practical tips

• Late challenges. Raise a challenge as soon as the ground is known; delay risks waiver.
• Thin disclosure. An arbitrator’s incomplete disclosure is a frequent source of later challenge, insist on full, continuing disclosure.
• Ambiguous clauses. Vague appointment mechanisms cause deadlock; specify number of arbitrators, method and appointing authority.
• Failing to incorporate rules properly. If you intend institutional administration, incorporate the rules clearly and completely.
• Assuming a stay. A pending challenge does not automatically pause the reference, seek a direction if needed.
• Ignoring nationality in international cases. Neutral-nationality appointments reduce enforcement and legitimacy risk.
• Poor service records. Keep proof of service of every notice and application.
• Forum shopping. Choosing the wrong court wastes time; identify the competent court for the seat.
• Overlooking emergency relief. Where assets or evidence are at risk, use emergency arbitrator or urgent court routes early.
• Conflating challenge and removal. They have different grounds and routes, pick the correct one.
• Weak affidavit evidence. Removal turns on facts; exhibit the correspondence and be specific about prejudice.
• Retrofitting multi-party consolidation. Address joinder and consolidation in drafting, not after the dispute arises.

Conclusion and further resources

To appoint arbitrators Nigeria commercial parties should treat constitution of the tribunal as the foundation of an enforceable process: choose the appointment route deliberately, insist on full disclosure, document every step, and reserve challenge and removal for genuine, evidence-based grounds raised promptly. The Arbitration & Mediation Act 2023 gives users a modern, autonomy-respecting framework with clear fallbacks and firm anti-delay features, and as the case law matures through 2026, disciplined front-end practice will remain the surest protection against a successful challenge. For the reasons above, and because sections, fees and court practice change, verify the current statutory text and registry schedules before you act, and take tailored advice where the stakes justify it.

For related guidance, see Choose a commercial law firm in Nigeria (procurement checklist). Cluster notes on enforcing arbitral awards in Nigeria and emergency and interim relief in Nigerian arbitration complement this pillar guide.

This article is general guidance and not legal advice.

Sources

1. Arbitration & Mediation Act, 2023, Federal Republic of Nigeria (National Assembly)
2. Supreme Court of Nigeria, judgments database
3. Court of Appeal of Nigeria, judgments and practice directions
4. Nigerian Bar Association, practice notes and guidance
5. UNCITRAL Model Law on International Commercial Arbitration
6. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention)