Introduction
Nigeria has made significant strides in advancing its dispute resolution landscape by introducing the National Policy on Arbitration and Alternative Dispute Resolution (ADR) Policy. This initiative underscores the Federal Government's commitment to fostering a robust, efficient, competitive Arbitration and Alternative Dispute Resolution (ADR) environment. Approved by the Federal Executive Council (FEC) on July 15, 2024, the Framework is designed to streamline arbitration processes, enhance investor confidence, and position Nigeria as a leading hub for domestic, regional and international commercial dispute resolution. It aligns with global best practices, ensuring that arbitration and ADR mechanisms in Nigeria are fair, transparent, and effective.
The overarching objective of the Framework is to decongest the judiciary, accelerate the resolution of commercial disputes, and support Nigeria's economic growth. It also reinforces Nigeria's commitment to key international treaties, including the UNCITRAL Model Law on International Commercial Arbitration and the UNCITRAL Model Law on International Commercial Mediation, strengthening its standing in global arbitration. It aims to promote the use of arbitration and ADR among government Federal Government Ministries, Departments, and Agencies (FG MDAs), guide their participation in arbitration, position Nigeria as a preferred hub for domestic, regional, and international commercial arbitration, safeguard national interests, and ensure the inclusion of arbitration clauses in agreements involving State Government Ministries, Departments, and Agencies (SG MDAs).
While the policy's objective of positioning Nigeria as a leading arbitration hub is commendable, its success hinges on effective implementation. Policies, by nature, articulate the government's intent, but without concrete execution strategies, they risk remaining aspirational. The Policy presents challenges and opportunities, particularly in ensuring stakeholder collaboration, institutional capacity building, and regulatory clarity.
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