NIGERIA: An Introduction to Dispute Resolution

Africa Law Practice NG & Co - Dispute Resolution Practice Overview

INTRODUCTION: 

While the impact of the COVID pandemic seems to be a thing of the past, the vestiges of the pandemic are still evident, and they have significantly impacted our daily lives. Just when the public felt that the pandemic was receding, more concerns are beginning to emerge due to the mutation of the virus which has now made way for variants of the virus, including the Delta and Omicron variants.

Similarly, the residue of the disruption caused by the pandemic has left behind varied challenges for businesses and various sectors around the world, and the legal industry is no exception. The dispute resolution space was one of the worst hit by the pandemic as it suffered long list backlogs, unattended cases and loss of case impression by judicial officials occasioned by the nationwide lockdown. To this end, most jurisdictions have employed proactive measures designed to arrest this development and, to the extent possible, return to regular proceedings, or what has now been termed the “new normal.”

Innovation and technology have played a pivotal role in this regard as various Nigerian courts have now introduced virtual hearings to supplement physical proceedings, while businesses are beginning to reconsider their options regarding the available dispute resolution mechanisms.

We discuss briefly how the dispute resolution sector in Nigeria is handling the post-COVID era and how some businesses may successfully navigate what we hope to be the closing stages of these unprecedented times.

ARBITRATION 

Given the vagaries of litigation, most businesses have resorted to arbitration and other alternative dispute resolution options in Nigeria. This is because businesses place a high premium on time and efficiency, and given the backlog suffered by cases in the last two years owing to the nationwide lockdown and the attendant shut down of the courts, litigants have opted for faster resolution options. The case for arbitration as a preferred dispute resolution option seems to be gaining more traction in the business community. This is because arbitration is perceived to be faster, more business-friendly, and efficient; more so, parties can continue business relationships even while their contractual disputes are being resolved.

Considering this development, we see arbitration taking the ascendancy in 2022 and beyond. Further, it will be interesting to see if the pending Bill for the Amendment of the Arbitration and Conciliation Act will be passed into law this year to give greater effect to arbitration practice and dispute resolution in Nigeria.

LITIGATION 

Even though the litigation landscape has been in a constant state of flux in recent times, the court system is fast adjusting to the changes created by the pandemic. The most remarkable adjustment is the collaboration between litigation and technology. The Nigerian legal system has embraced the use of technology to boost public confidence, advance the cause of justice and encourage litigants to explore the use of the court system in resolving commercial disputes.

For companies, the threat of litigation is an everyday concern as they meander through customer complaints and increasing government regulations. This concern is further heightened by the impact of the pandemic and the need for governments to fund their budget by increasing taxes on both domestic and foreign companies. We, therefore, anticipate an increase in the number of litigation disputes in the coming years. The sectors that are likely to drive this rise include the labour market, which may see an upsurge in unlawful termination cases created by measures adopted by small-sized companies unable to stay afloat due to the impact of the pandemic on their businesses; intellectual property rights enforcement caused by the increase in technology innovations; investment disputes ensuing as a result of increased taxes by governments under pressure to increase internally generated revenue; and general commercial disputes caused by the breach of contracts, frustration and force majeure, all attributable to the pandemic induced disruptions.

ENFORCEMENT OF JUDGMENTS 

Enforcement of court judgments and arbitral awards remains a thorny aspect associated with dispute resolution practice in Nigeria. The Sheriffs and Civil Processes Act, together with the Judgment Enforcement Rules, provide for various mechanisms for the enforcement of court judgments in Nigeria, ranging from garnishee proceedings, attachment writs and sequestration. The Arbitration and Conciliation Act and other rules governing institutional arbitration put in place mechanisms for judicial assistance in the enforcement of arbitral awards through the procedures.

Despite these options which are available to judgment creditors, enforcement of court judgments, as well as arbitral awards, remain a hurdle for litigants, especially in cases of monetary judgment enforcement. However, practitioners who specialise in this area of litigation practice have been actively instrumental to the expansion of case law in this regard and the courts are ready to give effect to extant laws to ensure that judgment creditors can reap the benefit of their judgments.

ACCELERATED HEARING OF APPEALS 

Given the need to restore public confidence in the court systems, the President of the Nigerian Court of Appeal issued the Court of Appeal Rules 2021, which came into force on 01 November 2021. The amendment is a significant development in the Nigerian legal system landscape, and it is expected to play a major role in the dispute legislation value chain. The new court rules are aimed at ensuring expeditious hearing and determination of appeal matters and decongesting the court’s docket.

The significance of the Court of Appeal in the Nigerian judicial system cannot be overemphasised. Apart from being the penultimate court in the judicial hierarchy, the court also serves as a court of first instance for a few subject matters in Nigeria, including election petitions and Constitutional matters. The new Court of Appeal Rules also create an enabling framework for the integration of technology into the practice and procedure of the Court. The innovations include the electronic service of briefs between litigants, the introduction of electronic signatures, the acceptance of electronic filings, the use of virtual hearings, and emergency provisions.

CONCLUSION 

The dispute resolution space anticipates a more stable year as adopted measures look quite promising. The courts have embraced emergency provisions and the use of technology aimed at curtailing the impact of future disruptions in the unlikely event of another lockdown. The interest of litigants at the various courts are at the forefront of these initiatives, and the courts, as well as counsel, are committed to making these initiatives work amidst the slight uncertainties still hovering around.

In the same vein, parties who are inclined to resolve their disputes by arbitration are also assured of hitch-free procedures, given the introduction of virtual hearings in arbitration proceedings. For instance, the Lagos Chamber of Commerce International Arbitration Centre (LACIAC) released its protocol for the management of virtual proceedings in 2020. The protocol may apply to arbitration proceedings conducted under the LACIAC’s rules. Parties to these proceedings may agree to conduct part or all of such proceedings virtually.