EVOLUTION OF THE PRACTICE OF ARBITRATION IN NIGERIA.
In Nigeria, the practice of dispute settlement through the process of arbitration is not a recent development[5]. The Nigerian legislative basis for arbitration was established on December 31, 1914, when the Arbitration Ordinance of 1914 was passed. The 1914 Ordinance was based on the English Arbitration Act of 1889, and Northern, Western, Eastern Nigeria, Lagos, and Southern Cameroons were included in its applicability under section 1 (2) of the 1958 Laws. The Act was formally enacted into law by each of the regions. There was therefore no federal law on arbitration until the promulgation of the Arbitration and Conciliation Act[6]. When the Arbitration Ordinance of 1958 went into effect, this Ordinance was once again implemented. The 1958 law, which extended to the entire nation, was incorporated into the local laws of every region. The 1958 Ordinance was later passed in Lagos State as the Arbitration Law, Chapter 10, Laws of Lagos State 1973, and in the western area as the Arbitration Law, Chapter 18, Laws of the Western Region of Nigeria 1959.
The Federal Military Government’s Decree No. 11 of 1988 on Arbitration and Conciliation was adopted on March 14th, 1988. This order, which was effective throughout the whole federation, removed the rules controlling state arbitration. In May 1999, Nigeria’s government was given democratic power and a new constitution was adopted. The 1999 Constitution provided state governments responsibility over matters covered by the concurrent legislative list and those not covered by the exclusive list, while the federal government was given jurisdiction to pass legislation on matters covered by the exclusive legislative list. The Arbitration and Conciliation Act, Cap. A18, LFN 2004 is the current arbitration law in Nigeria because Section 315 of the 1999 Constitution upheld the 1988 Decree.
The Arbitration and Conciliation Act establishes a uniform legal framework for the efficient and fair resolution of commercial disputes through arbitration and conciliation. It also makes the Convention on the Recognition and Enforcement of Arbitral Awards (New York Convention) applicable to any award made in Nigeria, or in any other contracting state arising from international commercial arbitration[7]. A unique feature of arbitral awards is that they can be applied internationally. Arbitral awards can be enforced in many countries throughout the world because of the New York Convention. People from countries that have ratified the New York Convention, such as Nigeria, may also use it to make awards more effective.
The Arbitration and Conciliation Act also supersedes all other arbitration laws in Nigeria. Thus, where there is any disagreement with another law (State law), that other law (State law) is null and void and has no force or effect[8].