Sanwo-Olu, Fagbemi demand urgent overhaul of arbitration in Africa

File photo: Lagos state governor, Babajide Sanwo-Olu

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Lagos State Governor Babajide Sanwo-Olu, the Attorney-General of the Federation Lateef Fagbemi (SAN),  Nigerian Bar Association President Afam Osigwe (SAN), and President of the Nigerian Institute of Chartered Arbitrators, Prof Fabian Ajogwu (SAN), have called for urgent reforms to strengthen arbitration and alternative dispute resolution across Africa.

They noted that this is crucial for the continent to build credible, efficient and trusted dispute resolution systems.

The call was made on Thursday at the 46th NICArb two-day International Arbitration and ADR Conference in Lagos, held at the Civic Centre, Victoria Island.

The conference’s theme was “Strengthening Institutional Arbitration and ADR in Africa: Charting a New Path.”

Sanwo-Olu argued that there was no justification for sending Africa-related disputes to foreign jurisdictions, noting that Africa has skilled arbitrators, reputable institutions and modern facilities.

Sanwo-Olu said, “For decades, Africa has been a centre of global investment, yet the mechanisms for resolving the disputes arising from these transactions are not always reflected on our continent.

“We must ask: what kind of justice system does a modern economy require? Investors want predictability, fairness, efficiency and credibility,” Sanwo-Olu said.

The governor, who was represented by Lagos State Attorney-General Lawal Pedro (SAN), highlighted the state’s deliberate efforts to place ADR at the core of commercial conflict resolution, citing institutions such as the Lagos Court of Arbitration and the Lagos Court of Commercial Contracts.

He noted that institutional strength is “the currency of global trust” and urged Africa to reclaim its narrative by resolving its disputes at home.

“Why must disputes arising from African transactions travel to distant destinations?”

“African disputes can be resolved in Africa with dignity, fairness and global standards,” Sanwo-Olu said.

Fagbemi (SAN) declared that Africa is on the brink of transformation, noting that sophisticated businesses require strong dispute-resolution mechanisms to support investment flows, especially under the African Continental Free Trade Area.

Fagbemi said, “Arbitration and ADR are engines of stability and the foundation for inter-regional trade.”

But he warned that Africa still faces legislative inconsistencies, concerns about neutrality, limited institutional capacity and enforcement weaknesses.

“These challenges are not signs of weakness; they are opportunities for reform,” he said.

Fagbemi announced that his office is working with the National Judicial Council to introduce new practice directions that will streamline arbitration-related cases, reduce delays, reinforce party autonomy and strengthen the finality of arbitral awards.

He further revealed that the Federal Government will soon begin work on a National Alternative Dispute Resolution Policy, which will harmonise ADR standards, accredit practitioners, and promote sector-specific dispute mechanisms in industries such as oil and gas, construction and finance.

“Government will lead by example,” he said, adding that ministries and agencies will adopt more ADR clauses, train officers, and demonstrate discipline that reassures investors.

He pledged expanded judicial training, mentorship for young arbitrators and increased opportunities for women, saying Africa must not only participate in global arbitration but lead it.

Osigwe (SAN) warned that Nigeria risks losing its credibility as a commercial hub unless lawyers, arbitrators and institutions take urgent steps to strengthen decisional efficiency and reduce dependence on prolonged court litigation.

“Whenever I listen to reports from our courts, I am reminded that we, as practitioners, have failed to fully embrace tools like arbitration and mediation,” he said.

He described long-running cases, some lasting more than a decade, as psychologically and financially devastating for litigants.

Osigwe also criticised the evolving culture of arbitration, saying it is drifting away from its core values of speed, affordability and flexibility.

“It is becoming unattractive, expensive and not time-saving,” he said. “Many approach arbitration with the same adversarial mindset as litigation, which defeats its purpose.”

He noted that the recently enacted Arbitration and Mediation Act 2023 offers a modern framework but can only succeed if practitioners use it responsibly.

“That law can only be as effective as we want it to be,” he said.

Osigwe urged lawyers to commit to resolving more cases through ADR, saying Nigeria must stop losing huge revenue to foreign jurisdictions.

“We must make Nigeria a destination for arbitration,” he said. “Let us commit to doing better for our clients and for the future of dispute resolution in Nigeria.”

Earlier in his welcome remarks, Prof Ajogwu called for a continent-wide overhaul of arbitration and alternative dispute resolution systems, insisting that Africa must take ownership of its destiny in commercial dispute resolution.

Ajogwu said Africa has reached a turning point where strengthening institutions, not merely adopting arbitration frameworks, must guide the next phase of development.

He emphasised that arbitration has long underpinned global commerce because of its efficiency, confidentiality and enforceability.

But he noted that Africa must focus on building credible institutions that can deliver these advantages consistently.

“Strong arbitration does not emerge by chance; it is built,” he said. “It requires institutions that are independent of personal influence, legislation that is clear and coherent, and judiciaries that understand their vital role not as adversaries but as allies in the arbitral process.”

While citing progress in Kigali, Cairo, Lagos, Nairobi, Abidjan and Johannesburg, he warned that Africa still suffers from deep fragmentation.

“We have too often built mechanisms without ecosystems, rules without culture, and institutions without predictable governance,” he said.

“Africa does not lack expertise; what it seeks is coherence,” Ajogwu said, urging stakeholders to move from “fragmented excellence to institutional cohesion.”

Ajogwu further stressed that arbitration should not be treated as an elite tool but as a critical pillar of economic governance and investor confidence.

“The independence of arbitral institutions is a national asset,” he said, adding that true reform will be measured not by the number of conferences held, but by the predictability and confidence delivered to users of the system.

He challenged African states and legal practitioners to ensure that global parties choose African seats such as Kigali, Cairo, Abidjan, Johannesburg, Lagos and Accra, not because of proximity but because of trust.

Ajogwu concluded with a firm appeal for African ownership of the dispute-resolution ecosystem.

“Africa’s future in dispute resolution cannot be outsourced. It must be built by us, through us, and for us,” he said.

“Arbitration is not just a process; it is a promise, a promise of fairness, efficiency and justice,” Ajogwu added.

He expressed confidence that the two-day conference will deepen dialogue and strengthen the institutions that arbitrate and mediate disputes across the continent.

The Secretary-General of the United Nations Commission on International Trade Law, Anna Joubin-Bret, who spoke virtually, called for an accelerated push toward modernising international arbitration systems, emphasising the need for efficiency, technological adaptation, and strengthened fairness in commercial dispute resolution.

She made the call while presenting a keynote address on the evolution and future direction of global arbitration frameworks.

Joubin-Bret stated that UNCITRAL within the UN architecture is one of the two legislative bodies of the UN General Assembly, alongside the International Law Commission, which codifies public international law.

UNCITRAL, she stressed, is responsible for harmonising and modernising international trade law across a broad spectrum of economic activity.

Joubin-Bret said, “International trade law covers virtually all transactions and disputes arising in corporate law, insolvency, transport, public procurement, public-private partnerships, and even investor-state dispute resolution.

“It shapes the legal infrastructure that supports global economic relations.”

Joubin-Bret highlighted UNCITRAL’s longstanding work to make arbitration quicker and more cost-effective.

She noted that, since 1991, the Commission has developed instruments that simplify tribunal procedures, shorten timelines, and allow document-only proceedings.

These reforms, she said, aim to deliver final awards within six months of constituting a tribunal.

But she stressed that such speed must never undermine due process.

The Secretary-General detailed recent advances, including the 2023 adoption of guidance allowing tribunals to swiftly dismiss manifestly unmeritorious claims or issues.

This early-dismissal mechanism, she said, helps tribunals focus on the core of disputes and prevents parties from wasting resources on baseless claims.

In response to calls for specialised tools for high-tech and time-critical disputes, UNCITRAL also developed the SPEED model clauses in 2024.

According to her, the clauses, covering highly expedited arbitration, adjudication, technical analysis, and confidentiality, are designed for disputes involving digital trade, construction, infrastructure, and technology-intensive sectors.

“These clauses provide flexible tools that parties can embed in their contracts,” she explained.

“They help ensure disputes can be resolved quickly, with the right expertise, and with the confidentiality essential to technology-driven industries.”

During a panel session, a former Registrar at the London Court of International Arbitration, James Clanchy, called for stronger, faster, and more cost-efficient institutional arbitration frameworks worldwide.

Clanchy delivered the remarks virtually, which focused on lessons from London that could guide reforms in jurisdictions like Nigeria.

Speaking on the theme of strengthening institutional arbitration, Clanchy stressed that users consistently identify two problems at the heart of arbitration: delay and cost.

He argued that arbitration institutions must prove that they can handle concerns better than ad-hoc mechanisms, particularly in major hubs like London, where ad-hoc arbitration “remains stronger, practically, than institutional arbitration.”

Clanchy highlighted the appointment of arbitrators as one of the most critical aspects of speed.

“Institutional systems like the ICC can take months to appoint a tribunal,” he said. “Businesses expect time-critical resolution. Waiting months is simply too long.

He noted that even UNCITRAL’s 30-day appointment periods for respondents and similar timelines in Nigeria’s Arbitration and Mediation Act are slower compared to English statutory mechanisms that automatically allow a claimant-appointed arbitrator to proceed as sole arbitrator if the respondent fails to act.

“That statutory feature works extremely well and forces efficiency,” he said.

Onozure is a correspondent of The PUNCH on the judiciary beat. She has over a decade experience covering criminal and civil matters from the magistrate to the appellate courts. She’s a graduate of Political Science

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