THE ROLE OF ARBITRATION IN COMMERCIAL DISPUTE RESOLUTION IN NIGERIA: A CRITICAL ANALYSIS OF THE LEGAL FRAMEWORK, CHALLENGES AND FUTURE PROSPECTS

Abstract

This study examines the role of arbitration in commercial dispute resolution in Nigeria, with particular emphasis on its legal framework, challenges, and prospects as an alternative dispute resolution mechanism. The study is undertaken against the background of the growing need for efficient, flexible, and cost-effective mechanisms for resolving commercial disputes outside the conventional court system. Adopting a doctrinal research methodology, the study relies on primary sources, including statutes, judicial authorities, and international instruments, as well as relevant secondary sources. The study finds that the enactment of the Arbitration and Mediation Act 2023 has significantly strengthened Nigeria’s arbitration framework by aligning it more closely with international best practices and improving the enforceability of arbitral awards. Nevertheless, challenges, including judicial interference, delays in enforcement proceedings, limited awareness, and institutional constraints, continue to hinder the effective utilisation of arbitration in Nigeria. The study concludes that arbitration remains an indispensable mechanism for commercial dispute resolution and possesses significant potential to promote investor confidence, enhance commercial certainty, and contribute to economic development. It therefore recommends sustained judicial support, effective implementation of the Arbitration and Mediation Act 2023, institutional strengthening, continuous capacity building, and increased public awareness to further enhance the practice and effectiveness of arbitration in Nigeria.