LEGAL GAPS IN THE ARBITRATION LAW OF NIGERIA: NEED FOR REFORM

Abstract

Arbitration, a form of Alternative Dispute Resolution (ADR) is one of the methods of amicable resolution of dispute outside the Courts. The parties to a dispute refer it to arbitration of one or more persons (Arbitrators or Arbitral Tribunal) and agree to be bound by the award of the arbitral panel. The Arbitrator of one person or Arbitral Tribunal of more than one person reviews the evidence adduced by the parties to Arbitration and in the end gives an award which is legally binding on both sides and enforceable by the Courts. Arbitration is often used to resolve commercial disputes. In Nigeria, arbitration practice is governed by the Arbitration and Conciliation Act Cap A18 LFN, 2004. This paper intends to discuss the gaps found in some sections of the Act relating to Domestic Arbitration which currently affect the smooth running of commercial transactions. The methodology adopted is doctrinal. The sources of data are literature review and case analysis. The research found that there were a lot of provisions in the Act which cause delay or hinder the aspirations of those who hopefully intended arbitration as a quick mode of resolving disputes in their businesses. The research concluded that our Act ought to be amended because of the gaps or flaws contained therein. The research made some recommendations which included but not limited to the following suggestions: that the provisions of section 4 of the Act be replaced in the subsequent amendment of the Act because of its challenges on the inherent discretion of the court to either grant or refuse an application made before it. The provision of section 7(4) of the Act which forbids appeal against a decision of the court to appoint arbitrator(s) for disputing parties is an infraction of the citizen’s right of appeal pursuant to the provisions of section 241 and 242 of the Constitution of the Federal Republic Nigeria, 1999 as amended. It is recommended that section 7(4) be declared void in accordance with the provisions of section 1(3) of the Constitution of the Federal Republic of Nigeria, 1999 as amended. The research concluded that our Act ought to be amended because of the gaps or flaws contained therein.