General lack of awareness and understanding of arbitration and Alternative Dispute Resolution (ADR) processes among the public is one of the many challenges that slow the effectiveness of Arbitration in Nigeria. Fabian Ajogwu, president of Nigerian Institute of Chartered Arbitrators (NICArb), shared his assessment of arbitration practice in Nigeria and the future opportunities of the practice in this interview. He also discussed the forthcoming conference of the Nigerian Institute of Chartered Arbitrators (NICArb) and the benefits it holds for members, guests and Nigeria. ZEBULON AGOMUO brings the excerpts:
The theme of the forthcoming conference is, ‘Transformation and intervention: the evolving trends in arbitration & ADR practice in Africa’; these “evolving trends” include the technology, particularly the Artificial Intelligence (AI). How prepared is NICArb for this new normal, especially with AI technology?
The rise of evolving trends, particularly artificial intelligence (AI), presents both opportunities and challenges for arbitral institutions like the Nigerian Institute of Chartered Arbitrators (NICArb). While NICArb has yet to make significant strides in AI adoption, its forthcoming conference on ‘Transformation and Intervention: The Evolving Trends in Arbitration & ADR Practice in Africa’ presents an ideal starting point to engage with this critical topic. To maximise the benefits and minimise potential risks associated with AI adoption, NICArb must adapt strategically to these advancements by understanding how AI can improve the dispute resolution process. AI already plays a role in dispute resolution through tools like online dispute resolution (ODR), document drafting, and other scalable applications that improve efficiency and accessibility.
However, the adoption of AI in arbitration requires careful consideration of ethical issues, such as bias in algorithms and the risk of fabricated data, to ensure fair outcomes in dispute resolution. NICArb’s readiness to explore and adapt to these technological advancements will be essential in positioning itself as a leader in the evolving arbitration landscape. This conference provides an excellent opportunity for NICArb to initiate meaningful discussions and develop strategies for responsibly integrating AI into its practices while advocating for the establishment of ethical guidelines and regulatory frameworks to govern its use.
Getting Nigerians to patronise local talents in Arbitration/Alternative Dispute Resolution (ADR) is a huge challenge. What would you say is the best approach to win over doubters?
Winning over people to patronise local talents in Arbitration and Alternative Dispute Resolution (ADR) in Nigeria requires a strategic, multifaceted approach that addresses both perception and practical concerns.
The first step is understanding the challenge. Scepticism about the capability of local practitioners often stems from the assumption that international experts are more competent or experienced. This is due to concerns about the perceived lack of expertise and neutrality within the Nigerian arbitration system, coupled with issues like potential bias, a slower legal process, and a desire for greater enforceability of awards in international courts, especially when dealing with cross-border disputes.
Addressing these concerns is key to building trust in local talents. After understanding the challenge, it is important to first highlight the benefits of ADR through awareness and education. ADR methods, such as arbitration and mediation, are more advantageous than litigation because they are faster, less expensive, and more flexible than traditional court proceedings. Many are unfamiliar with the practicalities and benefits of ADR. Public awareness campaigns, webinars, and training programmes can demystify ADR and make it accessible to a broader audience. An informed public is more likely to consider local practitioners as viable options. It is also important to note
that there is a growing pool of highly qualified Nigerian arbitrators working to improve the reputation and capabilities of domestic arbitration. Showcasing successful cases handled by local practitioners can help shift perceptions. Testimonials from satisfied clients, case studies of effective dispute resolution, and examples of cross-border disputes resolved by Nigerian arbitrators can help shift public perception. Events such as workshops, seminars, and conferences (like this one hosted by NICArb) are excellent platforms to share these narratives and inspire confidence in local talents. Institutions like NICArb play a pivotal role in enhancing the arbitration framework in Nigeria. Ongoing efforts to improve transparency, neutrality, and efficiency in domestic arbitration should be publicised to reassure potential clients of the system’s credibility and reliability.
How would you assess the performance of Arbitrators in Nigeria when compared with those in other countries like Kenya, Egypt, and Côte d’Ivoire?
The performance of arbitrators varies across jurisdictions due to differences in legal frameworks, cultural contexts, and institutional support. Arbitration in Nigeria has been evolving, with a growing number of trained arbitrators and institutions dedicated to dispute resolution. Nigeria has made significant strides in arbitration, with its arbitral institutions and the Arbitration and Mediation Act of 2023 enhancing its arbitration framework. NICArb plays a significant role in promoting standards and training for arbitrators. However, challenges such as delays in proceedings and a lack of public awareness about the benefits of arbitration can affect the overall perception of arbitrators’ performance. Take for instance, Kenyan arbitrators are highly regarded for their efficiency and adherence to international standards, supported by a robust institutional framework, such as the Nairobi Centre for International Arbitration (NCIA) and a growing pool of qualified arbitrators. The country has seen a rise in arbitration-friendly practices, and many retired judges join the arbitration field, adding to its credibility.
Egypt has a well-established arbitration system, with the Cairo Regional Centre for International Commercial Arbitration (CRCICA) being a key player. The country also benefits from strong institutional support. Its legal framework supports arbitration, and its recognition as a preferred seat for arbitration in the region. As a member of OHADA (Organisation pour l’Harmonisationen Afrique du Droit des Affaires) Côte d’Ivoire benefits from a harmonised legal framework for arbitration similar to that of other French-speaking West African countries. Côte d’Ivoire is emerging as a significant player in arbitration, with efforts to improve its legal framework and promote arbitration as a preferred method of dispute resolution. The country is working towards enhancing its reputation as a reliable arbitration hub. While Nigeria is making progress, Kenya and Egypt are ahead in terms of established frameworks and a larger pool of experienced arbitrators. Côte d’Ivoire is on the rise but still developing its arbitration infrastructure. Nigerian arbitrators have the potential to be highly competitive on the international stage.
What are the challenges to achieving speedy results in Arbitration/ADR cases in both private and public sectors, and to what extent can you say NICArb as an institute has contributed to solving them?
Among the challenges to achieving speedy results in Arbitration/ADR include Procedural Delays: These can arise from various factors, including the complexity of the case, the availability of arbitrators, and the scheduling of hearings. In both the private and public sectors, lengthy procedures can frustrate parties seeking quick resolutions.
Another significant challenge is the general lack of awareness and understanding of arbitration and ADR processes among the public. Members of the public may not fully grasp the benefits of ADR methods compared to traditional litigation, leading to hesitance in choosing arbitration as a viable option for dispute resolution.
Insufficient institutional support can also hinder arbitration’s effectiveness. In some cases, arbitration institutions may lack the necessary resources or infrastructure to facilitate timely proceedings. This can include inadequate hearing facilities or insufficient administrative support to manage cases efficiently.
Despite these challenges, the Nigerian Institute of Chartered Arbitrators (NICArb) has made significant strides in addressing these challenges and promoting the effectiveness of arbitration in Nigeria. NICArb has focused on enhancing arbitrators’ skills and knowledge through comprehensive training programmes. This helps ensure that arbitrators are well-equipped to handle cases promptly and effectively. The institute has also been active in raising awareness about the benefits of arbitration and ADR. Through workshops, seminars, conferences, etc, NICArb aims to educate the general public about the advantages of choosing arbitration over litigation, thereby increasing the demand for ADR services. NICArb plays a crucial role in developing the arbitration framework in Nigeria. This also includes establishing standards and guidelines for arbitration practices and creating a more structured environment that can facilitate quicker resolutions. NICArb advocates for policy changes that support the growth of arbitration in Nigeria. By engaging with government and legal stakeholders, the institute seeks to address systemic issues that contribute to arbitration delays, such as legislative reforms that enhance the enforceability of arbitration agreements.
What is the main focus of this year’s annual international conference of NICArb?
The 2024 Annual International Conference of the Nigerian Institute of Chartered Arbitrators (NICArb) is centered around the theme ‘Transformation and Interventions: The Evolving Trends in Arbitration and ADR Practice in Africa.’ This theme critically examines how arbitration and Alternative Dispute Resolution (ADR) practices are adapting to the changing landscape in Africa. The key areas of focus include Transformation in Arbitration Practices, Interventions to Improve ADR, Addressing Emerging Trends, and Networking and Collaboration. The conference will serve as a platform for networking among arbitration professionals, legal practitioners, and stakeholders from various sectors. This collaboration is essential for sharing insights and best practices and fostering partnerships that can drive the growth of arbitration in Africa.
At a press briefing to herald the conference, the institute called on the Federal Government to release the National Arbitration Policy; what in your opinion may have delayed the release and what efforts has the institute made to get the policy released beyond making the call at a media event?
The delay in releasing the National Arbitration Policy in Nigeria is not something this institute has control over. It could be attributed to several factors, including bureaucratic processes, political considerations, and the need for comprehensive stakeholder-consultations to ensure the policy aligns with international best practices.
As an institute, we have made our impute. The dominant impute we have made is that arbitration must and should remain party autonomy, party-driven, and that it must balance the interests of parties and not provide any lopsidedness in outcomes for arbitration.
We also want to make sure that arbitration does not by itself aid or promote illegality and issues of corruption. So, it is important that the policy makes mention of some of these core pillars of any dispute resolution system or administration of justice, which is to remove a corrupt system from it, to not make it a weapon of fraud, or to aid in illegalities. We as an institute have, with all humility, made our contributions. We do hope and push through our members that it comes out on time. NICArb has been actively working to expedite the release of the policy through various efforts beyond their media call. These efforts include Engagement with Government Officials, Stakeholder Consultations, Public Awareness Campaigns, and International Conferences and Workshops.
Promoters of ADR believe that incorporating ADR mechanisms (mediation and arbitration), into the court system can help alleviate the burden on courts and provide faster, more cost-effective dispute resolution options for litigants. How has this fared and would it be convenient to say that the Nigerian judicial system has been the better for it?
The integration of Alternative Dispute Resolution (ADR) mechanisms, such as mediation and arbitration, into the Nigerian court system has been a significant development aimed at alleviating the burden on courts and providing faster, more cost-effective dispute resolution options for litigants. This initiative has shown promising results, contributing positively to the judicial landscape in Nigeria. One of the primary benefits of incorporating ADR into the judicial system is the reduction of case backlogs in courts. The Lagos Multi-Door Courthouse (LMDC), for example, has demonstrated that disputes handled through ADR are resolved more quickly and amicably compared to those processed through traditional litigation. This efficiency helps to free up court resources, allowing judges to focus on more complex cases that require judicial intervention. ADR mechanisms are generally more cost-effective than traditional litigation. The expenses associated with prolonged court cases, such as legal fees and other related costs, can be significantly reduced when parties opt for mediation or arbitration. This financial benefit makes ADR an attractive option for many litigants, particularly in a country where access to justice can be hindered by economic constraints. The alternative pathways to justice which ADR offers, allows parties to resolve their disputes in a more informal and flexible environment, which can be particularly beneficial for those who may feel intimidated by the formal court system. This accessibility is crucial in a diverse society like Nigeria, where various cultural and social factors influence how disputes are perceived and resolved.
The incorporation of ADR into the judicial system promotes a more collaborative approach to dispute resolution. It encourages parties to engage in dialogue and negotiation, fostering a sense of ownership over the resolution process. This leads to more satisfactory outcomes for all parties involved, as solutions are often tailored to their specific needs and circumstances.
Despite these positive developments, challenges remain in fully integrating ADR into the Nigerian judicial system. Issues such as public awareness, the need for training among legal practitioners, and the establishment of a robust legal framework for ADR practices continue to be areas that require attention. However, the judiciary and various stakeholders are actively working to address these challenges through training programmes, public awareness campaigns, and legislative reforms.
It is reasonable to assert that the Nigerian judicial system has benefited from the incorporation of ADR mechanisms. The positive impacts on court congestion, cost-effectiveness, access to justice, and collaborative dispute resolution highlight the advantages of this approach. While challenges still remain, the ongoing efforts to promote and institutionalise ADR within the judiciary suggest a promising future for dispute resolution in Nigeria.
You have been in the practice for many years now. Could you please let us have idea of the progress made over the years in dispute resolution and how Nigerians are embracing it as a viable alternative?
Over the years, Nigeria has made significant strides in the field of dispute resolution, particularly with the adoption and enhancement of Alternative Dispute Resolution (ADR) mechanisms. Some of the key developments include Legislative Reforms: The Arbitration and Mediation Act of 2023 replaced the outdated Arbitration and Conciliation Act of 1988. This new act aligns Nigeria with international standards, such as the New York Convention, and introduces several innovations like emergency arbitrator proceedings and enforceable interim measures. Establishment of ADR Centers and Institutions: Nigeria has several institutions and centers which promote ADR services and practices. These include the Nigerian Institute of Chartered Arbitrators (NICArb), the Nigerian Chambers of Commerce Dispute Resolution Centre (NCC-DRC), the Alternative Dispute Resolution Centre (NICN-ADR), the Institute of Chartered Mediators and Conciliators (ICMC), and so on. This also includes the Lagos Multi-Door Courthouse (LMDC), which is Africa’s first court-connected Alternative Dispute Resolution (ADR) center and has served as a model for other ADR centers in the region. There is a growing awareness among Nigerians about the benefits of ADR, such as quicker, cheaper, and more amicable resolutions compared to traditional litigation.
Legal practitioners in Nigeria are increasingly incorporating ADR into their practice. Many lawyers (even law students) now receive training in mediation and arbitration, equipping them with the skills necessary to guide clients through these processes. This shift is indicative of a broader cultural change within the legal profession, where ADR is seen as an essential tool for effective dispute resolution. Despite these advancements, challenges remain, such as the need for more trained professionals and better awareness. However, the overall trend shows a positive shift towards embracing ADR as a viable alternative to litigation.
Could you please tell our readers how the conference would benefit members and guests who will be attending, and the country in general? Is it going to be another talk shop?
The upcoming conference promises several substantial benefits for attendees and the country as a whole, making it far more than just another talk shop. It aims to be action-oriented. The benefits of the conference to both members and guests, as well as for Nigeria as a whole, include: For Members and Guests: Networking Opportunities: The conference brings together professionals, experts, and stakeholders from various sectors, providing a platform for meaningful connections and collaborations. Another is knowledge sharing: Attendees will gain insights from leading experts in arbitration and ADR, learning about the latest trends, best practices, and innovative solutions. Through workshops, panel discussions, and interactive sessions, participants can enhance their skills and stay updated with the latest developments in their fields.
Professional Growth: Engaging with thought leaders and participating in discussions will inspire new ideas and strategies, contributing to professional growth and development.
The benefits of the conference for the country:
Economic Development: The adoption of effective dispute resolution mechanisms can attract foreign investment, as it assures investors of a reliable legal framework for resolving disputes.
Improved Judicial Efficiency: Promoting ADR can reduce the burden on the courts, leading to faster case resolutions and more efficient judicial processes.
Public Trust: By highlighting ADR’s benefits and successes, the conference can help build public trust in alternative dispute resolution mechanisms, leading to more widespread adoption.
Policy Influence: The conference’s discussions and recommendations can influence policy-making, encourage the government to adopt and support ADR mechanisms more robustly.
Source: BusinessDay
