Authored By: Anire Faith Arodovweroghene
Obafemi Awolowo University
ABSTRACT
Nigeria’s legal system is struggling with severe backlogs, high costs, lengthy delays, and limited access to justice especially for ordinary citizens. In response, Alternative Dispute Resolution (ADR) has increasingly become an important mechanism for alleviating these challenges. This article examines how ADR is being institutionalised in Nigeria, with special attention to recent legal reforms (notably the Arbitration and Mediation Act 2023 and the National Policy on Arbitration and ADR 2024), the operations of bodies such as the Lagos Multi‑Door Courthouse (LMDC), the challenges surrounding enforceability and public awareness, and emerging trends including third‑party funding and technological integration. The case study shows that while ADR in Nigeria has made significant progress and offers promising benefits. This article explores the general overview of ADR in Nigeria.
INTRODUCTION
Nigeria, like many developing countries, is wrestling with the twin problems of judicial delay and limited access to justice. Court dockets in superior courts are swollen ordinary civil or commercial disputes can take many years to reach resolution; costs are often high; and many citizens (especially in rural or marginalized communities) are effectively priced or procedurally excluded from meaningful participation. These challenges undermine public trust in the justice system and impede social and economic development.
Dispute Resolution (ADR) has emerged as a promising path. ADR refers to mediation, arbitration, conciliation, negotiation, and other mechanisms outside the formal courtroom system. It offers parties greater autonomy, faster resolution, lower costs, confidentiality, and sometimes more culturally appropriate dispute resolution. In Nigeria, ADR has been growing in importance, with new legal reforms and institutional innovations designed to institutionalise and regulate ADR more effectively.
Institutional and Legal Frameworks in Nigeria
The Arbitration and Mediation Act 2023
One of the most significant recent developments has been Nigeria’s Arbitration and Mediation Act (AMA) 2023. The Act introduces several innovations:
Third‑party funding (TPF) is now permitted, removing previous common law obstacles of champerty and maintenance in arbitration. This helps parties who may have meritorious claims but lack immediate financial resources.[1]New rules to improve efficiency, like provisions for emergency arbitrators and recognition of interim measures.[2]
Measures to streamline court‑arbitral interactions, ensuring arbitration agreements are enforced, that courts stay proceedings in favour of arbitration where appropriate, and that appeals and challenges are subject to tighter timelines.[3]
Case Studies / Examples
Lagos Multi‑Door Courthouse (LMDC)
Perhaps the most mature example in Nigeria is the Lagos Multi‑Door Courthouse (LMDC). Established in 2002, it is Africa’s first court‑connected ADR centre. Key features and accomplishments:
LMDC handles cases from commerce, family law, tenancy, banking, construction, etc. Many cases are either referred by courts or come as walk‑in cases.[4] As of August 2024, LMDC had handled over 25,481 cases with a success or resolution rate of about 56%, and it recovered large amounts (both in Naira and foreign currency) which otherwise would have remained tied up in litigation.[5]
LMDC also offers ADR training and procedural innovation. The institution has contributed positively to Lagos economy and investment climate by providing quicker remedies and reducing legal uncertainty.[6]
BENEFITS OBSERVED
From the above it is clear that ADR has several concrete benefits
- Saves cost and long process of Litigation
- Parties can settle disputes without going through a court proceedings
- It saves efforts
DISADVANTAGES OF ADR
- Enforceability of Mediation Settlement Agreements
- Awareness, Cultural Resistance and Power Imbalance
- Institutional Capacity & Resource Constraints
CONCLUSION
Nigeria’s experience shows that ADR is no longer a fringe alternativ it is increasingly central to justice delivery. The legal reforms (AMA 2023, National Policy 2024), the activity of LMDC and court‑annexed ADR centres, and the embedment of ADR into rules of court and policy frameworks indicate recognition that litigation alone cannot meet the demands of speed, cost, and access.
Reference(S):
[1] The Adoption of Third‑Party Funding (TPF) in the Arbitration and Mediation Act 2023 – NICArb. NICArb Blog. (2024). Outlines how TPF was made lawful under the AMA 2023 and associated changes.
[2] Transforming Nigeria’s dispute resolution landscape – a review of the Arbitration and Mediation Act 2023. LexisNexis Blogs. Highlights new provisions such as emergency arbitrators, interim measures, and electronic procedures.
[3] The Arbitration and Mediation Act 2023 and Nigeria’s quest to be an attractive seat of arbitration – BusinessDay NG. Details enforcement of arbitration agreements, court stays, representation, joinder, etc
[4] An interview with Udo Udoma & Belo‑Osagie discussing dispute resolution in Nigeria – NICArb. Notes the prevalence of court annexed ADR and the incorporation of ADR into state rules and court rules.
[5] ADR mechanism: Panacea for economic growth, development – The Guardian Nigeria. LMDC statistics: number of cases, success rate, sums recovered,
[6] Stakeholders advocate ADR for speedy dispute resolution – Punch NG. Remarks on economic impact and LMDC contribution.
