Comparative Guides

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4. Results: Answers
International Arbitration
8.
The tribunal
8.1
How is the tribunal appointed?
Nigeria

Answer ... The parties can freely determine the number of arbitrators to be appointed and specify the procedure for their appointment. However, in the absence of such procedure, Articles 6 and 7 of the Arbitration Rules of the Arbitration and Conciliation Act provide that if a sole arbitrator is to be appointed, either party may propose to the other the names of one or more persons, one of whom will serve as the sole arbitrator. If, within 30 days of receipt by a party of such a proposal, the parties have not reached agreement on the choice of a sole arbitrator, the sole arbitrator will be appointed by the court

If three arbitrators are to be appointed, each party will appoint one arbitrator and the two arbitrators thus appointed will choose the third arbitrator, who will act as the presiding arbitrator of the tribunal. If, within 30 days of receipt of a party’s notification of the appointment of an arbitrator, the other party has not notified the first party of the arbitrator it has appointed, the first party may request the court to appoint the second arbitrator.

If, within 30 days of the appointment of the second arbitrator, the two arbitrators have not agreed on the choice of presiding arbitrator, the presiding arbitrator will be appointed by the court.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.2
Are there any requirements as to the number or qualification of arbitrators in your jurisdiction?
Nigeria

Answer ... The Arbitration and Conciliation Act does not stipulate the number or qualifications of arbitrators; the parties are free to select the arbitrators of their choice. However, in the absence of an agreement as to number, the default number of arbitrators is three for arbitrations under the Arbitration and Conciliation Act and one under the Lagos State Arbitration Law.

With respect to nationality, Section 44(10) of the Arbitration and Conciliation Act provides that no one may be disqualified from being appointed by reason of his or her nationality.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.3
Can an arbitrator be challenged in your jurisdiction? If so, on what basis? Are there any restrictions on the challenge of an arbitrator?
Nigeria

Answer ... By virtue of Section 8(3) of the Arbitration and Conciliation Act, an arbitrator can be challenged if:

  • circumstances exist that give rise to justifiable doubts as to his or her impartiality or independence; or
  • he or she does not possess the qualifications agreed by the parties.

In addition, the Lagos State Arbitration Law provides in Section 10(3) that an arbitrator can be challenged if:

  • he or she is physically or mentally incapable of conducting the proceedings, or there are justifiable doubts as to his or her capacity to do so; or
  • he or she has refused or failed to use all reasonable despatch in conducting the proceedings or making an award, and substantial injustice has been or will be caused to the applicant as a result.

Neither the Arbitration and Conciliation Act nor the Lagos State Arbitration Law imposes any restrictions on challenging an arbitrator

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.4
If a challenge is successful, how is the arbitrator replaced?
Nigeria

Answer ... By virtue of Section 11 of the Arbitration and Conciliation Act and Section 11(4) of the Lagos State Arbitration Law, where the mandate of an arbitrator terminates, a substitute arbitrator will be appointed in accordance with the same rules and procedure as applied to the appointment of the arbitrator who is being replaced.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.5
What duties are imposed on arbitrators? Are these all imposed by legislation?
Nigeria

Answer ... The arbitrators must accord equal treatment to the parties and ensure that each party is provided with the full opportunity to present its case.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.6
What powers does an arbitrator have in relation to: (a) procedure, including evidence; (b) interim relief; (c) parties which do not comply with its orders; (d) issuing partial final awards; (e) the remedies it can grant in a final award and (f) interest?
Nigeria

Answer ... (a) Procedure, including evidence?

The powers of the arbitrator include:

  • the power to conduct the proceeding in an appropriate manner and in a way that ensures a fair hearing where the Arbitration Rules contain no provisions with respect to any particular matter (Section 15(2) of the Arbitration and Conciliation Act);
  • the power to determine the admissibility, relevance, materiality and weight of any evidence (Section 15(3) of the Arbitration and Conciliation Act);
  • the power to determine the language to be used in the proceedings where the parties have not done so (Section 18(1) of the Arbitration and Conciliation Act);
  • the power to order the translation of documentary evidence into the language to be used at the proceedings; and
  • the power to administer oath or take affirmation of the parties and witnesses (Section 20(6) of the Arbitration and Conciliation Act).

(b) Interim relief?

The arbitrator’s powers in relation to interim relief are set out in Section 13(a) of the Arbitration and Conciliation Act, which provides that the arbitral tribunal may order any party to take such interim measure of protection as the tribunal may consider necessary in respect of the subject matter.

Section 21 of the Lagos State Arbitration Law also empowers the arbitrator to make an order for interim relief or measures.

(c) Parties which do not comply with its orders?

The powers of an arbitrator with respect to any party which does not comply with its orders are not manifestly provided for in the Arbitration and Conciliation Act. Failure to comply with an arbitral orders may go to the issue of costs.

However, Section 41(2) of the Lagos State Arbitration Law provides that the parties are free to agree on the powers of the arbitral tribunal where a party fails to do anything necessary for the proper and expeditious conduct of the arbitration.

(d) Issuing partial final awards?

Article 32(1) of the Arbitration Rules of the Arbitration and Conciliation Act provides that the arbitral tribunal is entitled to make interim, interlocutory or partial awards in addition to a final award.

(e) The remedies it can grant in a final award?

The powers of the arbitral tribunal with respect to the remedies it can grant in a final award are not manifestly provided for in the Arbitration and Conciliation Act.

(f) Interest?

The powers of the arbitrator with respect to interest are not manifestly provided for in the Arbitration and Conciliation Act; much will depend on the agreement of the parties in this respect.

Section 46(1) of the Lagos State Arbitration Law provides that the parties are free to agree on the powers of the arbitral tribunal as regards the award of interest. Where this is so, the arbitral tribunal may award simple or compound interest (Section 46(2) of the Lagos State Arbitration Law).

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.7
How may a tribunal seated in your jurisdiction proceed if a party does not participate in the arbitration?
Nigeria

Answer ... Section 21 and Article 28(2) of the Arbitration Rules of the Arbitration and Conciliation Act empower the tribunal to terminate the proceedings if:

  • the claimant fails without sufficient cause to state its claim; or
  • the respondent fails to state its defence without sufficient cause, in which case the tribunal will continue the proceedings without treating such failure in itself as an admission of the claimant’s allegations.

Also, if any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make an award. Section 41 of the Lagos State Arbitration Law has similar provisions.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
8.8
Are arbitrators immune from liability?
Nigeria

Answer ... The Arbitration and Conciliation Act contains no provisions relating to the immunity of arbitrators from liability.

Section 18(1) of the Lagos State Arbitration Law provides that an arbitrator is not liable for anything done or omitted in the discharge or purported discharge of his or her functions as arbitrator, unless the act or omission is determined to have been in bad faith.

For more information about this answer please contact: Colin Egemonye from Goldsmiths Solicitors
Contributors
Topic
International Arbitration