Stakeholders in arbitration and alternative dispute resolution (ADR) from across Africa and beyond gathered in Lagos for the 2025 Annual International Arbitration and ADR Conference of the Nigerian Institute of Chartered Arbitrators (NICArb). Delegates agreed that Africa must take ownership of its dispute-resolution landscape to support economic development, investment protection, and sustainable peace. ADEBISI ONANUGA reports.
How can institutional arbitration and ADR be strengthened in Africa to chart a sustainable path for dispute resolution?
What role should judicial support play in the effective enforcement of arbitral awards under the Arbitration and Mediation Act 2023?
Which approach is more suitable for Africa’s future dispute resolution: institutional arbitration or ad-hoc arbitration, and why?
These were among many questions answered during the 2025 Annual International Conference of the Nigerian Institute of Chartered Arbitrators (NICArb) held from November 27 to 28.
Its theme was: “Strengthening institutional arbitration and ADR in Africa: Charting a new path.”
The conference featured a distinguished assembly of arbitral professionals, judges, academics, corporate leaders, senior advocates and policymakers to explore strategies for advancing arbitration and ADR across Africa.
They were united by a common concern: how to fix long-standing structural weaknesses in Africa’s dispute resolution framework and reposition institutional arbitration as a credible, efficient and globally competitive pillar of justice delivery.
Chairman of the 2025 Annual Conference Planning Committee, Chief Bolaji Ayorinde (SAN), described the gathering as both timely and strategic, noting that Africa’s economic trajectory and increasing integration into global trade make effective dispute resolution no longer optional but essential.
He said: “This conference invites us to do more than discuss arbitration.
“It asks us to imagine and shape the future of dispute resolution in Africa.
“It calls on us to deepen collaboration, embrace innovation and deliberately build institutions that can stand with confidence on the global stage.”
He stressed that arbitration and ADR play a silent but indispensable role in economic stability.
“Across Africa, the importance of effective dispute resolution cannot be overstated.
“Arbitration is the quiet engine that fuels economic growth, sustains stability, and builds trust in institutions,” the SAN said.
As Africa accelerates its engagement with international markets, Ayorinde warned that investors will increasingly demand dispute resolution systems that are credible, independent and predictable.
“The demand for efficient and forward-looking mechanisms for resolving disputes becomes ever more urgent as we integrate further into the global economy,” he added.
Institutional strengthening
President and Chairman of NICArb, Prof. Fabian Ajogwu (SAN) framed the conference theme as both a challenge and a call to action for the arbitration community in Africa.
“For decades, arbitration and ADR have served as the quiet architecture of global commerce because of their efficiency, privacy, enforceability and grounding in party autonomy,” Ajogwu said.
“But for us in Africa, the next frontier is no longer mere adoption. It is the strengthening of our institutions.”
He emphasised that strong arbitration systems are deliberately built, not accidental.
“Strong arbitration does not emerge by chance. It is built on trust, forged through consistency and sustained by principle,” he said.
Ajogwu identified weak governance, excessive personal influence, unclear legislation and judicial interference as recurring obstacles across the continent.
“Arbitration requires institutions that are independent of personal influence, legislation that is clear and coherent, and judiciaries that understand their role not as adversaries but as partners in the arbitral process,” he noted.
While acknowledging incremental progress from Lagos to Kigali, Nairobi, Cairo and Johannesburg, he warned that fragmentation remains a major issue.
“We have too often built mechanisms without ecosystems, rules without culture, and institutions without the predictable governance that commands global confidence,” he said.
To address these gaps, Ajogwu outlined five imperatives for strengthening institutional arbitration and ADR in Africa. First, he stressed institutional credibility.
“Arbitral centres must be insulated from political or personal influence. Governance must inspire confidence both at home and abroad,” he said.
Second, he highlighted judicial partnership. “Our courts must reinforce, not re-litigate, the arbitral process. The finality of awards is the foundation of their legitimacy,” he said.
Third, Ajogwu emphasised ethical standards.
“The integrity of arbitrators, mediators and administrators is the invisible currency of our system. Without it, even the best statutes will fail,” he warned.
Fourth, he called for capacity building and inclusion. “Young professionals, women practitioners and regional experts must be empowered to lead. The future of African arbitration depends on them,” he said.
Finally, he urged continental cooperation.
“We must connect African institutions through collaboration, shared standards and digital innovation that transcends borders,” he added.
According to him, Africa does not lack expertise but coherence.
“We must move from fragmented excellence to institutional cohesion,” Ajogwu said.
“Arbitration must not be seen as an elite instrument of private justice but as a pillar of economic governance that underpins investor confidence, trade stability and the rule of law.”
He concluded with a powerful call for ownership.
“Africa’s future in dispute resolution cannot be outsourced. It must be built by us, through us and for us.
“When parties choose to arbitrate in Africa out of confidence, not proximity, then we will know we have succeeded,” he said.
Sanwo-Olu seeks reforms
Lagos State Governor, Babajide Sanwo-Olu, reinforced the centrality of institutions in dispute resolution. Represented by the Attorney-General of Lagos State, Mr Lawal Pedro (SAN), the governor described arbitration and ADR as critical to Lagos’ ambition to remain Africa’s leading commercial hub.
“Nigeria and Africa sit at the centre of global investments, but our dispute resolution mechanisms have not always reflected that reality,” Sanwo-Olu said.
“Every investor, every employee and every innovator wants predictability, fairness, efficiency and credibility.”
He emphasised that laws alone are insufficient.
“No matter how robust the laws are, institutions ultimately determine whether justice is delivered,” he said.
Sanwo-Olu highlighted Lagos State’s deliberate investment in ADR mechanisms.
“Over the years, we have built legal institutions where justice is not only pursued but assured,” he said, noting that Lagos has placed ADR at the heart of commercial dispute resolution.
“Institutional strength is the currency of global trust,” he declared, pledging continued partnership with regulators and professional bodies to deepen mediation and arbitration across sectors.
“Let us leave this gathering with one shared conviction: African disputes can be resolved in Africa with dignity, fairness and global standards,” the governor said.
Arbitration key to trade
Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), described arbitration and ADR as instruments of peace and engines of stability, particularly under the African Continental Free Trade Area (AfCFTA).
“As cross-border investments and industries become more interconnected, the need for credible and trusted dispute resolution mechanisms becomes even more urgent,” Fagbemi said.
“Arbitration and ADR are the foundation for inter-regional trade.”
He acknowledged existing challenges such as legislative inconsistencies, neutrality concerns, limited institutional capacity and enforcement weaknesses.
“These are not signs of weakness; they are opportunities for reform,” he said.
Fagbemi announced that his ministry, working with the National Judicial Council, is developing new practice directions to streamline arbitration-related cases, reduce delays and reinforce the finality of awards.
He also disclosed plans for a National Alternative Dispute Resolution Policy.
“This policy will harmonise ADR standards, accredit practitioners, integrate ADR into government services and promote sector-specific mechanisms in areas such as oil and gas, construction and finance,” he said.
“Government will lead by example,” Fagbemi added.
“Our ministries and agencies will adopt ADR clauses, train officers and demonstrate the discipline that reassures investors.”
NBA flays prolonged litigation
Nigerian Bar Association (NBA) President, Mazi Afam Osigwe (SAN), warned that Nigeria risks losing its attractiveness as a commercial destination if lawyers fail to embrace ADR.
“Whenever I listen to reports from our courts, I am reminded that we have failed to fully deploy tools like arbitration and mediation,” Osigwe said.
He described decade-long court cases as “psychologically and financially devastating” for litigants.
Osigwe criticised the evolving culture of arbitration itself.
“Arbitration is drifting away from its core values of speed, affordability and flexibility. It is becoming expensive and not time-saving,” he said.
He urged practitioners to use the Arbitration and Mediation Act 2023 responsibly.
“That law can only be as effective as we want it to be,” he said, calling on lawyers to help retain arbitration revenue within Nigeria.
“We must make Nigeria a destination for arbitration,” Osigwe declared.
Environmental disputes and sector-specific arbitration
Environmental accountability also featured prominently.
Dr Joseph Tolorunse, Authority Secretary and Legal Adviser to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), examined the arbitration of environmental disputes in the oil and gas sector.
He outlined environmental risks across the value chain, including oil spills, gas flaring, emissions, aquifer contamination, soil degradation, and community displacement.
“Traditional litigation has proven slow, adversarial and often incapable of delivering sustainable outcomes,” he said.
According to him, arbitration and ADR provide a suitable framework for handling complex, multi-party and technically demanding environmental disputes, particularly under the Petroleum Industry Act (PIA) 2021, which imposes stricter environmental obligations on operators.
UNCITRAL’s modernisation push
Speaking virtually, Secretary-General of the United Nations Commission on International Trade Law (UNCITRAL), Ms Anna Joubin-Bret, called for accelerated modernisation of arbitration systems globally.
“International trade law shapes the legal infrastructure supporting global economic relations,” she said, noting that UNCITRAL has worked since 1991 to simplify arbitration procedures, shorten timelines and reduce costs.
“These reforms aim to deliver final awards within six months of tribunal constitution,” she added, stressing the need for efficiency, fairness and technological adaptation.
The communiqué
The communiqué emphasised the need to modernise arbitral rules, strengthen judicial cooperation, enforce ethical standards, invest in capacity building and responsibly deploy technology.
Among the recommendations are:
• Strengthening institutional arbitration: Institutional arbitration offers advantages over ad hoc processes, including administrative support, procedural standardisation, ethical oversight, and cost predictability. It is recommended that African institutions modernise their rules, establish transparent governance structures, and adopt best practices to enhance credibility and attract both domestic and international users.
• Adopting institutional over ad-hoc arbitration: While ad hoc arbitration provides flexibility, it lacks institutional support mechanisms that ensure consistent quality and timely resolution. Institutional arbitration, on the other hand, promotes standardised case management, monitored timelines, robust ethical frameworks, and clear cost structures, which are essential for establishing trust in Africa-based arbitration.
• Aligning with international best practices: African arbitration and ADR institutions are urged to integrate lessons from CIETAC, IMI, SIAC, HKIAC and UNCITRAL while tailoring frameworks to local contexts. Standardisation of rules, adoption of internationally recognised procedural frameworks, and engagement with global arbitration bodies were identified as key steps to enhance reliability and competitiveness.
• Africa’s expanding economic landscape: Africa’s economic diversification, spanning energy, infrastructure, technology, manufacturing, and financial services, has led to an inevitable rise in complex commercial and investor-state disputes. This rapid development increases transactional complexity, cross-border engagement, and regulatory demands, which require robust and credible arbitration mechanisms to manage disputes efficiently and sustain investor confidence.
• Integrating African values: Modern ADR should build upon African indigenous dispute-resolution principles, including reconciliation, dialogue, communal cohesion, and restorative justice. Incorporating these culturally grounded practices in African arbitration and ADR practices fosters legitimacy, strengthens public confidence, and ensures that arbitration is accessible, particularly for SMEs, community disputes, and local stakeholders.
•Effective enforcement of awards: The enforceability of arbitral awards remains a cornerstone of investor confidence. While the New York Convention provides a global framework, inconsistent domestic enforcement and judicial delays in many African jurisdictions remain significant barriers.
Delegates recommended that courts adopt a pro-arbitration posture, refrain from unnecessary intervention, and ensure predictable enforcement of awards.
• Judicial Cooperation and Education: Progressive arbitration legislation, such as the Arbitration & Mediation Act 2023, requires ongoing judicial education and awareness. Judges must develop a deep understanding of core arbitration principles, including party autonomy, kompetenz-kompetenz, separability, and limited judicial intervention and apply them consistently to ensure fairness, efficiency, and predictability in arbitration.
• Specialised Arbitration Courts: There are benefits in the creation of specialised commercial or arbitration courts to expedite resolution. This will result in building expertise and improving enforcement outcomes. Dedicated courts enable judges to develop sector-specific expertise, maintain consistency, and handle complex domestic and international disputes.
• Leveraging Technology: The use of digital tools, including virtual hearings, electronic filings, digital evidence management, and automated scheduling, enhances efficiency, reduces costs, and expands access to justice. It is recommended that institutions invest in robust IT infrastructure and develop digital protocols to ensure seamless case management and secure communication.
• Cautious Use of AI: Artificial intelligence can assist in document review, legal research, and scheduling, but it cannot replace human judgment. Practitioners are warned against over-reliance on AI, due to risks such as algorithmic bias, data privacy issues, and inadvertent breaches of confidentiality. Arbitrators should ensure that AI tools complement rather than substitute human decision-making.
• Energy, Extractives, and Power Arbitration: Disputes in energy, extractives, and power sectors, ranging from joint ventures to production-sharing contracts, environmental compliance, and community grievances, remain central to Africa’s economic stability. There is a need for an increase in sector-specific dispute-resolution frameworks and policy in Nigeria and Africa to protect investments and maintain operational continuity.
• Promoting African-Seated Energy Arbitration: Locating energy arbitrations in African jurisdictions is cost-effective for local parties and enhances the experience of African arbitrators. It is recommended that there be specialised panels for energy and extractives disputes, providing continuous professional training, and encouraging regional collaboration to strengthen local expertise.
• Environmental, Social, and Governance (ESG) Considerations: ESG obligations increasingly influence arbitration outcomes. It is thus recommended that African institutions should develop ESG-sensitive arbitration guidelines, strengthen remedies for affected communities, and work with governments to clarify regulatory expectations, thereby balancing development needs with environmental and social justice.
• Construction and Infrastructure Disputes: Africa’s growing infrastructure investments have led to increased disputes over timelines, variations, payment delays, and technical compliance. It is recommended that institutionalising mechanisms such as dispute boards, early neutral evaluation, and fast-track arbitration be used to ensure timely, fair, and cost-effective resolution of complex construction claims.
• Capacity-Building for Sector-Specific Arbitration: Effective resolution of energy, construction, and infrastructure disputes requires technical competence. African arbitration and ADR institutions are encouraged to develop targeted training programs for arbitrators and ADR practitioners, focusing on industry-specific knowledge, regulatory understanding, and procedural efficiency.
• Third-Party Funding (TPF): TPF enhances access to arbitration but requires clear regulatory frameworks to prevent ethical and procedural abuses. It is recommended that comprehensive rules on disclosure, conflicts of interest, confidentiality, and funder responsibilities be set up, to ensure fairness for both claimants and respondents.
• ADR in Banking, Finance, and Fintech: Litigation delays and enforcement challenges hinder financial dispute resolution. Embedding arbitration and mediation clauses in loan agreements, fintech contracts, and insolvency arrangements to accelerate resolution, reduce costs, and foster financial stability is recommended to boost efficiency in the sector.
• Cross-Border Collaboration: To retain high-value disputes within Africa, arbitration centres were encouraged to collaborate on joint case management, arbitrator exchange, training programs, and shared research. Continental cooperation strengthens capacity, ensures consistency, and positions Africa as a competitive hub for arbitration.
• Judicial Support for ADR: Courts play a vital role in facilitating arbitration, including interim relief, evidence management, and enforcement. There is a need for proactive judicial engagement, a pro-arbitration mindset, and impartial intervention to enhance predictability and credibility.
• Ethics and Independence: Integrity, impartiality, and adherence to ethical standards are critical for both arbitrators and institutions. Arbitration and ADR institutions are encouraged to adopt comprehensive codes of conduct, robust oversight mechanisms, and ongoing professional development to maintain public trust in arbitration processes.
• Media Engagement and Public Trust: Responsible media reporting educates the public, enhances transparency, and improves perception of arbitration. It is recommended that institutions develop media strategies, including storytelling, to highlight ADR successes, clarify misconceptions, and promote wider adoption without compromising confidentiality.
• Institutional Mediation and Collaboration: Lessons from Singapore, Hong Kong, and the Lagos Multi-Door Courthouse demonstrated that institutional mediation increases accessibility, encourages early settlements, and reduces costs. African institutions are urged to adopt structured mediation frameworks, leverage technology, and collaborate across borders to strengthen ADR practices.
• Training and Mentorship for Young Arbitrators: Young practitioners are essential to sustaining Africa’s ADR ecosystem. It is recommended that arbitration and ADR institutions, along with senior practitioners, engage in mentorship and provide tribunal secretary roles. Younger practitioners are encouraged to engage in research opportunities and publications to equip themselves as emerging arbitrators with practical knowledge, ethical grounding, and professional confidence.
• Continental Harmonisation of ADR Rules: Harmonised arbitration rules reduce unpredictability, facilitate cross-border enforcement, and strengthen investor confidence. The success of models such as OHADA is a case in point, and it is recommended that such initiatives be encouraged across the Continent, including shared rules, joint training programs, and collaborative panels.
• Africa Taking Ownership of ADR: African states’ credibility in arbitration depends on robust institutions, transparent and ethical arbitrator appointments, modernised rules, practitioner capacity development, and prioritisation of African seats. Delegates concluded that deliberate and coordinated efforts are required to position Africa as a trusted, competitive global hub for arbitration and ADR.
The 2025 NICArb International Arbitration and ADR Conference emphasised the readiness of African states to strengthen arbitration and ADR through institutional reforms, technological innovation, judicial cooperation, and ethical practices.
Delegates agreed that Africa must take ownership of its dispute-resolution landscape to support economic development, investment protection, and sustainable peace.
