Arbitration In Nigeria: An Exposé On Its Cost And Expenses

INTRODUCTION

In the light of increased awareness of the use of dispute resolution mechanisms in the resolution of disputes in Nigeria, arbitration has become the most commonly used alternative dispute resolution mechanism.

In 2021, major arbitration institutions published their statistical reports, and a close look, reveals that the use of arbitration increased by 25% in Nigeria compared to previous years. This shows increased participation in the process. One of the most asked questions for parties interested to use arbitration as a medium for dispute resolution is usually on the issue of cost and expenses in arbitration. In Africa, arbitration is presumed to be more expensive than litigation because to an extent the cost of litigation is subsumed by the state. This article critically assesses the cost and expenses of arbitration in Nigeria, eliciting from major arbitration institutions, and how these costs are incurred by parties.