The Arbitration and Mediation Act 2023 modernised Nigeria’s framework and addresses interim measures, emergency arbitration, third-party funding, mediation and recognition and enforcement. Nigeria is a party to the New York Convention.

Courts, arbitration and mediation

Nigerian courts may be suitable where urgent local relief, debt recovery, property or statutory remedies are central. Arbitration can provide a neutral seat, specialist tribunal, confidentiality and international enforcement. Mediation can preserve a commercial relationship and is often useful before or during formal proceedings.

The dispute clause should specify governing law, forum or seat, institution and rules, number and appointment of arbitrators, language, service, interim relief, confidentiality and consolidation or joinder where related contracts are involved. Optional negotiation stages should have clear time limits so they do not become a barrier to urgent action.

Enforcement planning

Before contracting, identify the counterparty’s assets, security and corporate structure. A favourable award has limited value if the debtor has no reachable assets. Consider guarantees, charges, escrow, retention, step-in rights and termination assistance at the transaction stage.

Government and public-sector contracts require particular attention to authority, procurement compliance, pre-action notices, statutory dispute routes and sovereign immunity. Sector regulators may also have mandatory complaint or adjudication processes.

Dispute readiness

Maintain signed contracts, variations, acceptance evidence, invoices, delivery records, correspondence and board approvals. Use consistent notice addresses and preserve electronic data when a dispute is foreseeable. Early assessment should cover limitation, jurisdiction, evidence, interim protection, settlement authority and enforcement location.