Arbitration Clauses That Work in Nigeria (2025)

• Seat of arbitration: legal home of the arbitration (e.g., Lagos, Abuja, London). It drives the curial law and court supervision.
• Governing law: law of the underlying contract. Consider also stating the law governing the arbitration agreement.
• Rules & institution: e.g., Lagos Court of Arbitration (LCA), Regional/International centres (e.g., LCIA/ICC), or ad hoc using UNCITRAL Rules.
• Scope: define disputes covered—“arising out of or in connection with” captures contractual and related tort/estoppel claims.
• Tribunal: sole arbitrator or three; appointment method and qualifications.
• Language, venue & logistics: English is common; venue for hearings can differ from the seat.
• Multi‑tier process: negotiation/mediation → arbitration with clear timelines.

1) Domestic Nigeria, Lagos seat (sole arbitrator)

Any dispute arising out of or in connection with this Agreement shall be referred to and finally resolved by arbitration seated in Lagos, Nigeria. The arbitration shall be conducted under the [LCA/UNCITRAL] Arbitration Rules in force when the Notice of Arbitration is submitted. The tribunal shall consist of a sole arbitrator appointed by agreement of the parties, failing which by the appointing authority under the said Rules. The language of the arbitration shall be English.

2) Cross‑border, neutral seat (three arbitrators)

Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration under the [ICC/LCIA/UNCITRAL] Rules. The seat of arbitration shall be [London/Paris/Singapore]. The tribunal shall consist of three arbitrators. The governing law of this Agreement is the law of [X]. The language shall be English.

3) Multi‑tier (good‑faith negotiation → mediation → arbitration)

If a dispute arises, senior executives shall meet within 14 days of a notice of dispute to negotiate in good faith. If not resolved within 21 days thereafter, the parties shall refer the dispute to mediation under the [LCA/other] Mediation Rules. If not settled within 30 days from the mediator’s appointment, the dispute shall be finally resolved by arbitration seated in [Lagos/Abuja/neutral seat] under the [LCA/UNCITRAL/ICC/LCIA] Rules. The language shall be English.

4) Carve‑outs for urgent relief

Notwithstanding the foregoing, a party may seek interim or conservatory measures from any competent court or the emergency arbitrator (where available) without waiver of this arbitration agreement.

Add‑ons you can insert

• Law of arbitration agreement: “This arbitration agreement shall be governed by the laws of [Nigeria/England & Wales].”
• Confidentiality: “The parties shall keep the arbitration and award confidential, save as required by law or to enforce/protect a right.”
• Joinder & consolidation: “The tribunal may join third parties and/or consolidate related arbitrations where the same parties and questions of law or fact arise.”
• Expert determination: for discrete valuation/technical issues before arbitration.

Many institutional rules provide an emergency arbitrator and empower tribunals to order interim measures to preserve assets or evidence. Nigerian courts generally support such measures and can grant interim relief in aid of arbitration.

• Consider expressly opting‑in to emergency arbitrator provisions (if your chosen rules require it).
• State that court relief does not waive arbitration.
• Provide for security for costs where appropriate.

Projects often involve affiliates, subcontractors or financiers. Anticipate this in the clause:

• Define “party” to include named affiliates for disputes arising from their performance.
• Include joinder language to add necessary third parties with their consent.
• Allow consolidation where arbitrations involve common questions of law or fact.

Align with your chosen Rules and local law on limits to consolidation/joinder.

• Seat: Lagos or Abuja works well for Nigerian contracts; neutral seats (e.g., London) can suit cross‑border deals.
• Number: sole arbitrator for claims under a threshold (e.g., USD 2m); three arbitrators for complex/high‑value matters.
• Qualifications: specify industry expertise, arbitration experience, and independence/availability.
• Language: state English unless there’s a better business reason.

• Confidentiality: obligations on parties, counsel, witnesses and experts.
• Evidence: limit discovery to what’s proportionate; consider IBA Rules on the Taking of Evidence as guidance.
• Timelines: empower the tribunal to adopt a fast‑track procedure for urgent/smaller claims; set target months to award.
• Virtual hearings: allow remote hearings and electronic service/filings.

State that the tribunal may award costs (legal and arbitration) on a “costs follow the event” basis, or as it considers appropriate. Consider caps for low‑value claims and fee‑splitting until award.

Nigeria is a party to the New York Convention, and Nigerian courts can recognise and enforce foreign arbitral awards subject to limited defences. Domestic awards seated in Nigeria are supervised by Nigerian courts, with limited grounds to set aside an award. Draft clear, enforceable relief in your clause (interest, currency, netting, confidentiality) to smooth enforcement.

Always align your clause with current Nigerian arbitration legislation and your chosen Rules at the time of contracting.

• Construction/EPC: engineer’s determination as a pre‑condition; consolidated disputes across subcontracts; expert evidence timetables.
• Energy/O&G: stabilization/renegotiation clauses; confidentiality around seismic and operational data.
• Tech/SaaS: expedited procedures; narrowly tailored discovery; IP confidentiality and injunctive relief carve‑outs.
• Finance: joinder of security providers; parallel court jurisdiction for interim relief over collateral.

• Seat/venue confusion (naming only a “venue” when a “seat” was intended).
• Pathological clauses mixing multiple institutions or conflicting rules.
• Silence on multi‑party issues where affiliates perform critical obligations.
• No law chosen for the arbitration agreement, leading to unnecessary disputes.
• Over‑broad confidentiality that blocks necessary regulatory disclosures.

1. Choose seat (and venue if different); state governing law of contract and of arbitration agreement.
2. Select rules and institution; opt‑in to emergency arbitrator if desired.
3. Define scope (“arising out of or in connection with”).
4. Set tribunal size, appointment method and qualifications.
5. Add multi‑tier steps with realistic timelines.
6. Include joinder/consolidation language for multi‑party projects.
7. Address confidentiality, evidence, virtual hearings and timelines.
8. Clarify costs powers and interest/currency on awards.

Can we still go to court for urgent injunctions?

Yes—most clauses allow applications to competent courts for interim relief without waiving arbitration, and many rules also provide emergency arbitrators.

What if the value is small—do we still need three arbitrators?

No—use a sole arbitrator for smaller or straightforward matters; it’s faster and cheaper.

Can we keep the process confidential?

Yes—add a confidentiality clause and select rules that respect confidentiality, subject to lawful disclosures.