SPECIAL REPORT 21
NI GER I A
The Lagos Court of Arbitration (LCA) was launched in 2012 in response to the increase in commercial activity in Nigeria to provide amodern legal framework for the settlement of disputes in Nigeria and acrossWest Africa. The country boasts the largest branch of CIArb. Nigeria is also home to the Regional Centre for International Commercial Arbitration and the Arbitration Commission of the International Chamber of Commerce (Nigerian National Committee). The question surrounding the Nigerian courts’ attitude to arbitration, and particularly in relation to the enforcement of awards, is slowly being answered by case law from the Nigerian Court of Appeal. According to a recent judgement in the Nigerian National PetroleumCorporation v. Statoil (Nigeria) Limited case, the Nigerian courts do not have jurisdiction to intervene in arbitration proceedings (except as provided in the Arbitration and Conciliation Act (ACA). Funke’s experience is consistent with this: “Two or three years ago I used to hear stories about Nigerian judges treating enforcement proceedings like appeals and going through awards with fine tooth combs. In the last two years, there’s been a fair amount of training for judges in arbitration processes and on the role of courts in the process. Now the judges are faster if there’s an application to enforce an award. Casesmove faster through the courts than previously and judges aremore aware of the extent of their powers.” Training appears to be a focus for the region: “As amember of CIArb, I see hundreds of lawyers now turning up to take entry, membership and training courses in arbitration. This is a positive development for foreign parties, as the quality of Nigerian andWest African arbitrators and counsel will increase. So I think the onlyway to go is up.”
NIGERIA RECENTLY OVERTOOK SOUTH AFRIC A TO BECOME THE L ARGEST ECONOMY IN AFRIC A IN 2014. SIMIL ARLY TO OTHER JURISDICTIONS, A S COMMER CIAL ACTIVIT Y IN NIGERIA HA S INCRE A SED, INTERNATIONAL ARBITRATION HA S GROWN TO SERVICE THE NEEDS OF PARTIES INVOLVED IN DISPUTES. AWARENESS OF THE BENEFITS OF ARBITRATION IS GROWING AND MANY COMMER CIAL ENTITIES NOW FAVOUR ARBITRATION OVER LITIGATION. FRUSTRATION WITH THE COURTS APPE ARS TO BE A MA JOR CONTRIBUTOR TO THIS TREND. Funke Adekoya San, Partner of ÆLEX, a commercial and litigation law firm in Nigeria comments: “For me it was the frustration of spending days andweeks in court without much happening.” Nigeria became a signatory to the New York Conventionwith both reciprocal and commercial reservations in 1979. Nigeria is also a signatory to the ICSID Convention and awards are enforced in Nigeria by the International Centre for Settlement of Investment Disputes (Enforcement of Awards) Act, CAP 120, Laws of the Federation of Nigeria, 2004. Arbitration in Nigeria is governed by the Arbitration and Conciliation Act, 1988, CAP A18, Laws of the Federation of Nigeria, 2004. The Act was based on the UNCITRALModel Lawand applies to all arbitrations seated in Nigeria, bar ICSID arbitrations. However, an additional piece of legislation was introduced recentlywhich is specific to Lagos, Nigeria’s hub for commercial activity: “The State Government took the view that arbitrationwas an economic investment andwanted to develop Lagos into a hub for arbitration activities in Africa. The Lagos Arbitration Law, May 2009 is flexible in that the nationality of the arbitrator is unimportant, irrespective of whether the case is domestic or international. It’smuchmore attractive to investment than the federal lawwhich is still at the outdated 1988 law stage.”
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