Promoting Economic Development in Nigeria Through Arbitration and Mediation: A Critical Appraisal of the Arbitration and Mediation Act 2023

Abstract

This paper examines the capacity of arbitration and mediation to support economic development in Nigeria through the Arbitration and Mediation Act 2023. The Act replaced the former Arbitration and Conciliation Act and introduced a wider statutory scheme for commercial arbitration and mediation. It recognises innovations such as electronic arbitration agreements, permits emergency arbitration, allows third-party funding and creates an optional Award Review Tribunal. Part II gives mediation a detailed statutory basis and provides routes for enforcement of settlement agreements. The paper argues that these reforms can improve commercial dispute resolution, but their economic effect depends on institutional support and access by businesses. The analysis draws on the Constitution of the Federal Republic of Nigeria 1999, the Arbitration and Mediation Act 2023, the New York Convention, the Singapore Convention, decisions of courts in Nigeria and the National Policy on Arbitration and Alternative Dispute Resolution 2024-2028. It also uses institutional theory and transaction-cost economics to explain the connection between dispute resolution and economic activity. The paper finds that although the legal framework of this Act is stronger than the framework it replaced, factors like delay in court proceedings, the cost of arbitration and limited use of mediation outside larger commercial disputes can reduce its practical value. It proposes a coordinated commercial dispute-resolution programme centred on dedicated court lists, procedural time standards, training and wider access to mediation.

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