Arbitration in Nigeria: the 2023 Act, costs and enforcement

The short version

• Nigeria has one federal arbitration statute: the Arbitration and Mediation Act 2023 (AMA), based on the 2006 Model Law of the United Nations Commission on International Trade Law (UNCITRAL). It commenced on 26 May 2023 and repealed the Arbitration and Conciliation Act (Cap A18, Laws of the Federation of Nigeria, 2004) (s 90).
• Absent agreement, the default tribunal is a sole arbitrator (s 6), and the seat, if the parties do not choose one, is any place in Nigeria the tribunal determines (s 32).
• The AMA added an Award Review Tribunal: parties can agree a challenge to the award goes first to a second tribunal before any court (s 56). It is the Act’s main departure from the Model Law.
• An award cannot be appealed on the merits and is set aside only on the grounds in s 55(3), by an application within three months (ss 55(1), (4)).
• The AMA allows third-party funding, also called litigation funding, where an outside funder pays a party’s costs for a share of any recovery, on disclosure. It also switched off maintenance and champerty, old rules that once blocked outside funding, for arbitration (ss 61, 62).
• Nigeria is a New York Convention party, acceding in 1970 with the reciprocity and commercial reservations, and the Convention sits in the AMA’s Second Schedule (s 60). The AMA has no provision on artificial intelligence (AI).^1,14,15

What law governs arbitration in Nigeria?

One federal statute governs arbitration in Nigeria: the Arbitration and Mediation Act 2023 (Act No. 74 of 2023). It commenced on 26 May 2023 and repealed the Arbitration and Conciliation Act, Cap A18, Laws of the Federation of Nigeria, 2004 (long title; s 90). Much of the material online still describes the repealed Act.¹

Its objective is a fair resolution of disputes without unnecessary delay or expense (s 1(1)). Part I covers international commercial, inter-state commercial and commercial arbitration in Nigeria (s 1(5)) and applies where the seat is in Nigeria (s 1(6)). A listed set of court powers applies even where the seat is abroad: the stay (s 5), interim measures (s 19), their recognition and refusal (ss 28, 29), witness attendance (s 43) and the enforcement of awards (ss 57, 58), under s 1(7).¹

The Model Law is UNCITRAL’s 1985 template for national arbitration laws, amended in 2006. The AMA follows the 2006 text, and UNCITRAL lists Nigeria with 2023 legislation. For two seats in the same common-law family, see arbitration in London and arbitration in Singapore.^1,15

Nigeria acceded to the New York Convention, the 1958 treaty on recognising and enforcing foreign arbitral awards, on 17 March 1970, in force 15 June 1970. It took the reciprocity reservation, applying the Convention only to awards made in another contracting state, and the commercial reservation, only to disputes considered commercial under Nigerian law. The AMA enacts it as the Second Schedule (s 60). See New York Convention grounds.^1,14

Court means the High Court of a State, the High Court of the Federal Capital Territory, Abuja, or the Federal High Court (s 91). The Lagos State Arbitration Law 2009 (Law No. 18) also co-exists for Lagos-seated matters; see reforms.^1,7

Why do parties choose Nigeria as a seat, or not?

Parties pick Nigeria as a seat chiefly when the contract, the counterparty or the assets are Nigerian. The 2023 Act gives them a modern arbitration law at home, and a government policy now pushes to make the country a venue for its own disputes. No primary figure we could verify places Nigeria among the world’s preferred international seats, so we give no comparative ranking.¹

The seat is the arbitration’s legal home: its law governs the procedure and its courts supervise the case. It is set by the parties, by an institution or person they authorise, or failing that by the tribunal (s 32(1)). Absent any designation it is any place in Nigeria the tribunal determines, unless the tribunal decides another country fits on the closest connection and the law the parties chose (s 32(2)).¹

A party weighing Nigeria finds the features a modern arbitration law carries. The tribunal rules on its own jurisdiction and the clause is separable (s 14). There is an emergency arbitrator for relief before the tribunal forms (ss 16 to 18). Third-party funding is allowed on disclosure, and maintenance and champerty no longer apply to arbitration (ss 61, 62).¹

There is a policy push too. In March 2023 the Federal Ministry of Justice consulted on a draft National Arbitration Policy, which it said aims to make Nigeria “the hub of arbitration in Africa” and to keep disputes on Nigeria-based transactions inside Nigeria. That is the government’s stated aim, not a measured result.²

Which institutions run arbitrations in Nigeria, and under what rules?

Nigeria has no single dominant institution. Four bodies run or support arbitrations: the Regional Centre for International Commercial Arbitration, Lagos; the Lagos Court of Arbitration; the Nigerian Institute of Chartered Arbitrators; and the Chartered Institute of Arbitrators, Nigeria Branch. None is in the set tracked for AI rules, so we do not link them there.^3,5,8,10

The Regional Centre in Lagos is intergovernmental, set up under the auspices of the Asian-African Legal Consultative Organization by agreement with Nigeria in 1980 and inaugurated in March 1989. It administers cases under the UNCITRAL Arbitration Rules with modifications. Its Nigerian enabling statute is the Regional Centre for International Commercial Arbitration Act of 1999, which we name but did not read.^1,3

The Lagos Court of Arbitration is a private-sector institution under the Lagos Court of Arbitration Law 2009 (Law No. 17). It runs Standard, Expedited and Small Claims arbitration and mediation and publishes a fee schedule and a services page with its registration fees. Its full rules PDF is a scanned image with no machine-readable text, so we cite the rules’ existence and the fee and services pages, not rule wording.^5,6,7

The Nigerian Institute of Chartered Arbitrators was founded in 1979 and incorporated in 1988 as a body limited by guarantee. It runs an Arbitration and ADR Centre and acts as an appointing authority under the NICArb Arbitration Rules 2021. We read only the article headings, so we quote no rule text. The Chartered Institute of Arbitrators, Nigeria Branch, is a branch of the body founded in the United Kingdom in 1915 and is separate from NICArb. The Lagos Multi-Door Courthouse is the Lagos judiciary’s court-connected ADR centre.^8,9,10,11

What should the arbitration clause say, and what can be arbitrated?

A model arbitration clause for Nigeria earns its keep by making the choices the Act would otherwise make for silent parties. The one hard requirement is writing: the agreement must be recorded in writing to count (s 2(2)). Beyond that, the clause should name the seat and set the number of arbitrators, because the Act’s defaults, set out in the checklist below, may not be what a party wants.¹

A Nigerian arbitration agreement can be a clause or a separate agreement (s 2(1)) and must be in writing (s 2(2)). The writing test is met where the content is recorded in any form, even if the agreement was made orally or by conduct (s 2(3)), and it expressly covers electronic communication (s 2(4)(a)). Incorporation by reference counts where the reference makes the clause part of the contract (s 2(5)). The agreement is irrevocable, subject to the stay provision and unless the parties agree otherwise (s 3).¹

• Fix the number of arbitrators. The default is a sole arbitrator if the parties do not agree (s 6), which may not suit a large dispute.
• Name the seat. If the clause is silent the choice falls to the tribunal (s 32), and a party loses the certainty of which courts supervise the case.
• Rely on separability and competence-competence. The clause is independent of the main contract and survives a finding that the contract is void, and the tribunal rules on its own jurisdiction (s 14(1), (2)).
• Raise a jurisdiction objection in time. A plea that the tribunal has no jurisdiction must be raised not later than the points of defence (s 14(3)).¹

The AMA lists no non-arbitrable subjects itself. Section 65 preserves any other law under which a dispute may not be arbitrated, or only under that or another law. On a challenge the court may also raise, of its own motion, non-arbitrability under Nigerian law (s 55(3)(b)(i)) or conflict with the public policy of Nigeria (s 55(3)(b)(ii)).¹

We name no non-arbitrable categories by case, because we could verify no Nigerian case law from an official court source. The same two gateways govern a set-aside; see the challenge section.¹

How does a Nigerian arbitration work, step by step?

A Nigerian arbitration begins on the date the respondent receives the written request to refer the dispute, unless the parties agree otherwise (s 33). The table below collects the clocks for appointing the tribunal, for urgent relief and for the award.¹

For a three-member tribunal, each party appoints one arbitrator and the two appoint the third. If a party misses 30 days from the request, or the two arbitrators miss 30 days on the third, the choice passes to the named appointing authority, or failing that an arbitral institution in Nigeria or the Court (s 7(3)(a)). For a sole arbitrator the same fallback applies if the parties do not agree within 30 days (s 7(3)(b)).¹

Before the tribunal forms, a party needing emergency relief applies to a designated institution or, failing designation, to the Court (s 16(1)), which appoints an emergency arbitrator within two business days (s 16(5)). The emergency decision is due within 14 days of the file reaching the arbitrator, and the parties can agree to extend that (First Schedule Art 27 para 2). A challenge to the emergency arbitrator is decided within three business days (s 17(2)). The decision is then enforced like an interim measure under s 28 (Art 27 para 6). Once formed, the tribunal can grant interim measures (s 20), and so can a court, within 15 days (s 19).¹

Court applications run under the Third Schedule, the Arbitration Proceedings Rules 2020, which define an arbitration claim and the Originating Motion that starts it (s 64(2)). A mediation track sits in Part II (ss 67 to 87): a mediated settlement is enforceable as a contract, consent judgment or consent award (s 82(2)); for mediation and AI, see AI in mediation. Costs are in time and cost; the courts’ role in courts.¹

How long does arbitration in Nigeria take, and what does it cost?

There is no fixed statutory deadline for the final award in a standard case. The AMA sets clocks for emergency relief, a correction and the Award Review Tribunal, but no single date for a standard award. It uses no money scale for the tribunal: the fees and expenses of the arbitrators must be “reasonable in amount”, judged by the amount in dispute, the complexity, the time spent and any other relevant circumstance (First Schedule Art 49 para 1; parallel at s 50(2)). We give no average duration, because no primary Nigerian institutional figure supports one.¹

How much a Nigerian arbitration costs is concrete only at the Lagos Court of Arbitration, which publishes a registration fee and a scale of administrative and arbitrator fees in Naira. The table shows the Standard administrative scale and the headline rates; the registration fee is non-refundable and paid with the request.^4,5

• Registration fee: N200,000 Standard, N100,000 Expedited, N25,000 Small Claims and N24,000 Mediation, non-refundable with the request.
• Administration fee: a Standard scale from N200,000 at the N5m to N10m band to a cap of N6,010,000 above N2bn; the Expedited scale caps at N4,350,000, and Small Claims runs N25,000 to N80,000.
• Each arbitrator’s fee: a time rate of N100,000 per hour or N800,000 per day (Standard), or a value scale from a minimum of N945,000 up to N17.5m in dispute, rising in bands to a top band over N50bn.
• Emergency arbitrator and challenge fees: the LCA schedule sets no separate line; under the AMA an emergency arbitrator’s fees form part of the costs the emergency decision fixes (First Schedule Art 27 para 5).
• Worked example, N100,000,000 in dispute, Standard track, sole arbitrator: a N200,000 registration fee; an administrative fee of N1,560,000 (N900,000 plus 1.1% of the N60m above N40m); and an arbitrator’s fee on the value scale of between N2,182,230 and N9,238,725 (the N70m to N140m band). The LCA-side total is about N3,942,230 to N10,998,725, before each side’s own legal costs.
• Who pays: the tribunal fixes the costs in its award (s 50(1)), and the parties are jointly and severally liable for the arbitrators’ fees (s 53), meaning each can be required to pay the whole. We convert no figure to another currency, because the schedule is in Naira.^1,4,5

What role do Nigerian courts play during an arbitration?

A Nigerian court supports the arbitration and stays out of it otherwise: it shall not intervene in any matter governed by the AMA except where the Act provides, and applications follow the Third Schedule (s 64). The role is a set of named powers, not a general supervisory discretion.¹

The first power is the stay, an order halting a court case so the dispute can go to arbitration. Where an action is brought on a matter covered by an arbitration agreement, the court shall refer the parties to arbitration, so long as a party asks no later than its first statement on the substance (s 5(1)). The exception is an agreement that is void, inoperative or incapable of being performed. The stay is near-mandatory, and the arbitration may begin or continue, and an award be made, while the court matter is pending (s 5(2)).¹

A court can grant interim measures of protection, orders that preserve assets or evidence until the award, for an arbitration seated in Nigeria or abroad, within 15 days of an application (s 19), and can compel a witness to attend (s 43); both powers apply even where the seat is outside Nigeria (s 1(7)). An interim measure the tribunal grants can be enforced through the court (s 28), and an emergency arbitrator’s Emergency Decision is enforced in the same manner (First Schedule Art 27 para 6, applying s 28).¹

We found no Supreme Court of Nigeria arbitration decision verifiable from an official court source, so this guide cites none and describes the courts’ role from the statute alone.¹

Can you appeal or set aside an award in Nigeria?

You cannot appeal a Nigerian award on the merits. The only recourse is an application to set aside, where a court at the seat cancels the award (s 55(1)); there is no set-aside for an error on the face or on any ground outside s 55(3) (s 55(2)). The application is made within three months of receiving the award, or of the tribunal disposing of a correction request under s 49 (s 55(4)).¹

The grounds track article 34 of the Model Law (s 55(3)(a)). They are incapacity, an invalid agreement, a failure of proper notice or a lost chance to present a case, an award beyond the scope of the submission, or a tribunal or procedure out of line with the agreement or the Act. Where only part of an award is beyond the scope, that part can be severed. The court may also raise of its own motion non-arbitrability under Nigerian law or conflict with the public policy of Nigeria (s 55(3)(b)). Where a ground is proved and has caused or will cause substantial injustice, the court may remit or set aside, in whole or part (s 55(5)), and may pause the application to let the tribunal cure the defect (s 55(6)).^1,17

The Award Review Tribunal is the AMA’s main departure from the Model Law (s 56). Parties can provide in their agreement that a review on the s 55(3) grounds goes first to a second tribunal, not straight to court (s 56(1)). The aggrieved party gives a Notice of Challenge within the same three-month window as a set-aside (s 56(2)), and the review tribunal has the same number of arbitrators as the first (s 56(4)).¹

The Act asks it to endeavour to decide within 60 days of being constituted (s 56(6)), a target rather than a hard limit. After it sets an award aside, a party can ask the court to review that decision, and the court reinstates the award if the reasoning is unsupportable (s 56(8)). Where it affirms the award, the only court set-aside grounds left are non-arbitrability and public policy (s 56(9)).¹

How are arbitral awards enforced in and from Nigeria?

An award, whatever the country it was made in, is binding and is enforced by the Court on a written application (s 57(1)). The applicant supplies the original award or a certified copy, the agreement or a certified copy, and a certified English translation where either is in another language (s 57(2)). By leave of the Court it is enforced like a judgment (s 57(3)).¹

The grounds to refuse enforcement track article V of the New York Convention (s 58). They are incapacity, an invalid agreement, a notice or fair-hearing failure, an award beyond the scope, a tribunal or procedure out of line with the agreement or the law of the seat, or an award not yet binding or already set aside. Non-arbitrability and public policy are added to that list, and an over-scope award can be severed in part. The court can adjourn and order security while a set-aside is pending at the seat (s 58(3)).¹

A Nigerian award is enforced abroad under the New York Convention, which has 172 parties; see New York Convention grounds. It runs both ways: s 60 applies it, through the AMA’s Second Schedule, to an award made in another contracting state in a commercial relationship, with Nigeria’s reciprocity and commercial reservations both biting. For enforcing into other common-law seats, see arbitration in India, arbitration in London and arbitration in Singapore.^1,14

Mediated settlements have their own route: a settlement is enforceable as a contract, consent judgment or consent award (s 82(2)), and s 87 gives effect to the Singapore Convention on Mediation, the 2018 United Nations treaty on enforcing international mediated settlements. Nigeria signed it on 7 August 2019, ratified it on 27 November 2023, and it entered into force for Nigeria on 27 May 2024.^1,16

The AMA sets no specific limitation period for enforcement. Section 34 applies the ordinary statutes of limitation, and for proceedings to enforce an award it excludes the period between the start of the arbitration and the date of the award (s 34(4)). We state no fixed number of years, because the Act does not.¹

What changed with the 2023 Act, and what is pending?

The reform is the Act itself. The AMA replaced the Arbitration and Conciliation Act (Cap A18, Laws of the Federation of Nigeria, 2004). It brought in the emergency arbitrator (ss 16 to 18), the Award Review Tribunal (s 56) and express third-party funding with disclosure, and it ended maintenance and champerty for arbitration (ss 61, 62). It also added an interim-measures regime aligned to the 2006 Model Law (ss 19 to 29) and gave effect to the Singapore Convention (s 87).¹

The policy noted under seat is the other strand. We found no primary text of a finalised national policy, so we record only the March 2023 consultation and state no provisions.²

One co-existing statute is worth a flag. The Lagos State Arbitration Law 2009 (Law No. 18) exists for Lagos-seated matters. We verified only its arrangement of sections, and not from an official Lagos State source, so we note its existence without its provisions or how it interacts with the AMA.⁷

What does Nigeria say about AI in arbitration?

Very little, and nothing arbitration-specific. The AMA 2023 has no provision on artificial intelligence (AI), meaning computer systems that do tasks that would normally need human judgment; its First Schedule allows electronic communication. We found no Nigerian institutional rule on AI in arbitration and no court practice direction on it, as of 30 October 2026.¹

Nigeria’s draft National Artificial Intelligence Strategy of August 2024, whose published PDF is watermarked “Draft”, does not reach arbitration or dispute resolution. Its single mention of a dispute is internal: a proposed AI Governance Regulatory Body (s 5.1.2) that would, among other things, mediate potential disputes and adjudicate, review and evaluate the use and deployment of AI across entities. That concerns how AI is overseen, and does not touch arbitration.¹²

There is one piece of professional-body guidance we could not open. The Nigerian Bar Association is reported to have launched Guidelines for the Use of Artificial Intelligence in the Legal Profession in Nigeria in 2024. We could not open the host and found no primary confirmation of the launch or its date, so we describe it as reported and quote no section.¹³

For the general treatment of AI in arbitration, see AI in arbitration, the global CIArb AI guideline from the body whose Nigeria branch is in the table above, and how AI use can affect setting aside an award. There is no dedicated AI guide for Africa, so the AI in arbitration guide covers the regional view too.¹

What is still open in Nigerian arbitration?

• Whether a finalised national policy on arbitration and ADR has been adopted, and what it requires. We located the March 2023 consultation but no primary text of a final policy.
• How the Award Review Tribunal works in practice. The Act asks it to endeavour to decide within 60 days of its constitution (s 56(6)) but sets no firm timetable, and we found no verified example in operation.
• How Nigerian courts apply the near-mandatory stay and the set-aside grounds, since we could verify no Supreme Court of Nigeria arbitration authority from an official court source.
• Whether Nigerian institutions or courts will issue AI guidance for arbitration. None was found, and the National AI Strategy is silent on dispute resolution.^1,2,12