Alternative Dispute Resolution (ADR) is an essential ingredient towards stabilising the polity as well as an alternative means of resolving disputes. It is said that dispute is inevitable in the course of daily human transactions. In line with international best practices driven by international and national arbitration institutions, the Nigerian Bar Association (NBA) last week inaugurated the NBA National Working Group (NWG) on arbitration practice in Nigeria to show its readiness and commitment towards enshrining arbitration into the psyche of every Nigerian. Daily Independent LAW EDITOR Adam Adedimeji witnessed the event. His report:

The Nigerian Bar Association last week set up an 11-man panel Arbitration Working Group (AWG) chaired by the immediate past President of the association, Olisa Agbakoba (SAN).

The group is expected to set in motion the machinery for institutionalising the practice of arbitration as a major form of conflict resolution in the country.

Specifically, the panel's responsibility is to harmonise the various conflicting arbitration groups in the country to give a proper direction to the practice of arbitration in Nigeria as well as evolve a globally accepted standard.

While inaugurating the committee at the Victoria Island head office of the association, NBA President, Oluwarotimi Akeredolu, SAN, listed promotion of arbitration practice in Nigeria through advocacy and institutional support as one of the AWG terms of reference. The committee will also encourage the use of arbitration to settle small business, investment, import and export and any other trade disputes.

Besides, the committee is expected to suggest a framework for the establishment of a National Arbitration Commission (NAC) to regulate arbitration work in Nigeria as well as the establishment of a National Centre for Arbitration (NCA).

Among the terms of reference given to the group are:

• To promote arbitration in Nigeria through advocacy and institutional support.

• To encourage the use of arbitration to settle small business, investment, import|export and other trade disputes.

• To organise programmes on arbitration and alternative dispute resolution.

• To work on the amendment of the Nigerian Arbitration Law.

• To establish a National Centre for Arbitration.

• To work on establishment of a National Arbitration Commission to regulate arbitration work in Nigeria.

• To take responsibility for generating projects and activities for the group.

• To ensure that the business of the group as spelt out in the terms of reference are conducted according to the objectives of the association as contained in the constitution of the NBA taking the visions of his administration presented at Minna NEC.

• To make the NBA National Secretariat aware at all times, of all the group's activities.

• To provide quarterly reports of the working group's activities to the NEC of the NBA.

To serve with Agbakoba in the committee are A. B. Mahoud, SAN; George Etomi; Tunde Fagbonlu, SAN; Mrs. Doyin Rhodes - Vivour; Mrs. Eunice Odiri; Mrs. Funmi Roberts; Babajide Ogundipe; Dr. C. J. Amadike; George Ajayi and Dorothy Ufot.

NBA's National Working Group's Programme of Action

Arbitration and Alternative Dispute Resolution (ADR) have been international best practices driven by international and national arbitration institutions. Unfortunately only ad hoc arbitration bodies are obtainable in Nigeria against significant volume of commercial transactions (both domestic and international). Disputes arising from these transactions are ultimately arbitrated in foreign countries. The flow of "domestic" (that is, purely Nigerian) arbitration cases to arbitral venues outside Nigeria is unhelpful to Nigeria's economy and development strategy programme (NEEDS). Particularly, it means also loss of huge revenue to majority of Nigerian lawyers.

The gap

Business managers (or their legal advisers) and institutions that have to decide on the advantages of choosing Nigeria as an arbitration forum are usually interested in Nigeria's knowing the adequacy and efficacy of Nigeria's legal and institutional framework for arbitration. Presently, there is no National Arbitration Institution in Nigeria while the Regional Centre, for International Arbitration does not possess the legal and required capacity to drive national arbitration development The institutional and legal constraint on arbitration in Nigeria was further raised when Akeredolu interacted with key actors in arbitration from other jurisdictions at the 50th anniversary of the New York Convention on Recognition and Enforcement of International Arbitral Awards.

The interaction with key actors from Singapore, Japan, China, London, Paris, South Africa and Dubai, showed there was need for forums and new framework on arbitration in Nigeria. Many of the stakeholders suggested that establishment of national institution and up-to-date legal framework on arbitration.

The Action

The president strongly believes that NBA is most qualified to pilot development of arbitration in Nigeria, considering the fact that various proposals have been made in the without action, a pgrammatic approach became inevitable.

In furtherance of the above, official communications were established with arbitration institutions in Singapore, China, South Africa and Dubai while proposals on partnerships were made to the Chartered Institute of Arbitrators (Nigeria), Lagos State government, Regional Center for International Arbitration (RCIA), office of the Honourable Attorney General of the Federation, among Others,

Details of steps taken and the outcomes at national level

• NBA proposed to partner with Lagos State government on Establishment of Center for Domestic Arbitration in Lagos. Similar centers will also be driven by NBA with other state governments;

• NBA met with the Director of Regional Centre for International Arbitration RCIA in Lagos on how the centre could add value to development of arbitration in Nigeria;

• NBA notified the HAGF of its intention to partner with HAGF on amendment of arbitration laws.

At the international level

• NBA on invitation visited the China International Economic and Trade Arbitration Commission (CIETAC) to discuss partnership on law, development, arbitration and alternative dispute resolution.

CIETAC is a major permanent national institution in China frequently selected by parties from both domestic and abroad as the institution to resolve their disputes due to its efficient and cost effective procedure administration.

Outcomes

• Lagos State government has constituted a committee to work on the establishment of Center for Domestic Arbitration based on NBA's proposal;

• NBA and Chartered Institute of Arbitrators (Nigeria) have agreed in principle to partner on establishment of a National Centre for Arbitration. Lagos State government has pledged a piece of land for this purpose at Lekki Lagos;

• NBA to work with HAGF's office on establishment of a National Arbitration Commission to regulate in Nigeria;

• NBA to work on Amendment of Nigeria Arbitration laws;

• NBA, CIETAC, ACLA agreed in principle to work together on promotion of arbitration between China and Nigeria through advocacy and institutional support.

CIETAC is willing to participate at the annual general conference of NBA 2009 in Abuja and to co-host with NBA and ACLA a special programme on arbitration, Alternative Dispute Resolution and Legal Practice.