Nigeria: Litigation, Mediation & Arbitration

In modern commercial contracts, arbitration clauses are commonly included as the parties’ preferred dispute resolution mechanism, given its advantages of confidentiality, flexibility, efficiency, neutrality, and access to specialist adjudicators. However, the effectiveness of such clauses ultimately depends on their drafting precision. An arbitration clause intended to be mandatory may be construed as permissive if poorly drafted or paired with a jurisdiction clause, thereby allowing a party to bypass arbitration, contrary to the parties’ intention.