Arbitration has become a central pillar of dispute resolution in Nigeria’s commercial landscape, driven by party autonomy, confidentiality, procedural flexibility, and the enforceability of awards under the Arbitration and Mediation Act 2023. However, the effectiveness of arbitration is often determined long before any dispute arises at the drafting stage of the arbitration clause.
Poorly drafted clauses, commonly referred to as “pathological arbitration clauses,” continue to undermine dispute resolution processes in Nigeria. Rather than delivering efficiency and finality, such clauses generate jurisdictional confusion, procedural delays, satellite litigation, and, in some cases, complete unenforceability of the arbitration agreement.
