Banker-Customer Disputes Resolution In Nigeria- Is Arbitration The Way Forward?

FORWARD?

Introduction

In Nigeria disputes between banks and their customers are typically resolved through litigation in the courts. By section 251(1) of the Constitution of the Federal Republic of Nigeria 1999 the Federal High Court has exclusive jurisdiction to entertain disputes between banks and other financial institutions, but the section contains a proviso which confers concurrent jurisdiction on the Federal and State High Courts for matters between a customer and his bank in respect of transactions between the customer and the bank¹.

Due to the typical relationship between a bank and its customer, banker-customer disputes  are  almost  invariably  commercial  disputes,  which  usually  ought  be  resolved within a reasonable period of time. However, over the years, the sheer number of cases filed in both the Federal High Court and State High Courts (particularly Lagos) in Nigeria has meant that the wheels of justice tend to grind much slower than