Exploring Dispute Resolution in Nigeria: A Comprehensive Examination of Formal and Alternative Methods.

Over the years, the Nigerian legal system has developed various mechanisms to resolve disputes, ranging from formal court proceedings to alternative methods like arbitration, mediation, and negotiation. These methods are designed not only to ensure justice but also to promote harmony and maintain social order.

This article examines the various dispute resolution methods available within the Nigerian legal system. By analyzing their characteristics, benefits, and drawbacks, this discussion aims to provide a comprehensive understanding of how parties can navigate the most suitable path for resolving their conflicts.

Meaning of Dispute Resolution

Dispute resolution involves settling conflicts between parties, and according to Black’s Law Dictionary, it includes methods like litigation, arbitration, mediation, and negotiation. In Nigeria, this process is supported by a robust legal framework, including the Constitution of the Federal Republic of Nigeria (1999). Section 6 of the Constitution vests judicial powers in the courts to adjudicate disputes, while Section 36 guarantees the right to a fair hearing. The Arbitration and Mediation Act (2023) modernizes the legal foundation for alternative dispute resolution (ADR), promoting efficient methods outside of traditional courtrooms. Court rules in various jurisdictions, such as the Lagos Multi Door Courthouse, encourage parties to explore ADR options before proceeding to trial. Additionally, customary and Sharia law offer traditional pathways for resolving conflicts, particularly in communities where these practices hold significance.

Categories of Dispute Resolution

There are two main categories of dispute resolution methods: adjudicatory and non adjudicatory. The adjudicatory method is exemplified by litigation, whereas non adjudicatory methods include arbitration, mediation, conciliation, reconciliation, and negotiation.

Litigation

Litigation remains the most recognized and formal method for resolving disputes through the court system in Nigeria. It is based on constitutional provisions, such as Section 6, which grants courts the power to adjudicate disputes, and Section 36, which ensures a fair hearing. Litigation is governed by the Constitution, statutes, and court rules, and it involves presenting a case before an impartial judge or panel, who then delivers a binding decision based on the evidence and legal arguments.

Although litigation provides legal enforceability and the right to appeal, it is often criticized for being time consuming, expensive, and procedurally rigid. Moreover, its adversarial nature can damage relationships between parties, making it less suitable for cases where ongoing cooperation is important. However, litigation remains crucial for complex legal issues, criminal cases, and constitutional questions, especially when alternative methods have proven ineffective or unsuitable.

Arbitration

Arbitration is a non adjudicatory method where the parties submit their dispute to a neutral third party, an arbitrator, whose decision called an award is binding. This method is especially popular in commercial and contractual disputes due to its confidentiality, flexibility, and speed compared to litigation. Arbitration in Nigeria is largely governed by the Arbitration and Mediation Act (2023), which aligns Nigerian arbitration practices with international standards.

One of the key benefits of arbitration is that parties can choose their arbitrator and have more control over the procedures. It is especially effective for cross border disputes. However, arbitration can still be costly and may require court involvement to enforce awards or address procedural issues. Despite these drawbacks, arbitration continues to be a popular choice in Nigeria, particularly for business related conflicts where privacy and efficiency are important.

Mediation

Mediation is a voluntary and confidential process where a neutral third party, the mediator, helps disputing parties communicate and reach a mutually acceptable resolution. Unlike arbitration, the mediator does not impose a decision; the outcome is entirely dependent on the willingness of the parties to agree. Mediation is becoming increasingly recognized in Nigeria as an effective tool for resolving civil, commercial, family, and community disputes. The Arbitration and Mediation Act (2023) provides a modern framework for mediation, and institutions like the Lagos Multi-Door Courthouse (LMDC) have institutionalized it within the court system, encouraging parties to explore amicable solutions before resorting to litigation.

Mediation offers several advantages: it is cost effective, preserves relationships, and enables quicker resolution. However, its success depends on the willingness of the parties to cooperate, and agreements reached may not automatically be binding unless formally documented or endorsed by the court.

Reconciliation

Reconciliation, unlike other methods, focuses on restoring broken relationships through dialogue and mutual understanding. It is more about healing emotional and social rifts than simply resolving the immediate dispute. A neutral third party, often a respected figure in the community or someone chosen by mutual agreement, facilitates the process, guiding the parties toward forgiveness and cooperation.

In Nigeria, reconciliation is frequently used in family, communal, and religious disputes, particularly in areas where customary or traditional practices guide conflict resolution. The Matrimonial Causes Act (1973) Section 11 it the Act mandates that parties seeking a divorce must explore reconciliation options beforehand proceeding may be adjourned to enable attempt at reconciliation. Though not strictly governed by formal statutes, reconciliation is often supported by customary practices and can be highly effective, especially for emotionally charged conflicts. However, it lacks formal legal enforceability unless the terms are documented or court approved.

Conciliation

Conciliation involves a neutral third party, known as the conciliator, who actively assists the parties in reaching a settlement by proposing solutions and encouraging compromise. Unlike mediation, where the mediator only facilitates communication, a conciliator may suggest specific terms for settlement and offer legal advice. However, the parties still retain control over the final agreement.

Conciliation is commonly used in labor disputes, family matters, and civil cases. In Nigeria, the National Industrial Court (NICN) plays a significant role in conciliating labor disputes before moving to formal adjudication. The Industrial Arbitration Panel (IAP) also assists in resolving disputes between employers and employees. Conciliation is faster, less costly, and more flexible than litigation, and it helps preserve relationships. However, like mediation, its agreements are not automatically binding unless formalized through a legal framework.

Negotiation

Negotiation is the most informal method of dispute resolution, where the parties themselves directly communicate to resolve their issues without a third party. It is flexible, confidential, and typically the first step in many dispute resolution processes. Negotiation is effective in various contexts, including business dealings, family disputes, and community conflicts. However, its success depends heavily on the parties’ willingness to engage in good faith and compromise. While negotiation may not always lead to a binding agreement, it often serves as the foundation for other methods like mediation or arbitration.

Conclusion

Dispute resolution is crucial in Nigeria’s legal system, offering a range of methods designed to suit different needs and circumstances. From formal litigation to non adjudicatory methods like arbitration, mediation, reconciliation, conciliation, and negotiation, each method has its own advantages and limitations. Litigation, though comprehensive, can be costly and adversarial, while alternative methods offer faster, more flexible solutions that help preserve relationships. Ultimately, the choice of dispute resolution method depends on the nature of the dispute, the parties’ relationship, and the desired outcome. By understanding the available options, individuals and institutions can make informed decisions that lead to more effective and sustainable resolutions.

References

1. Constitution of the Federal Republic of Nigeria (1999, as amended).

2. Matrimonial Causes Act, 1973.

3. Arbitration and Mediation Act, 2023.

4. National Industrial Court Act, 2006.

5. International Chamber of Commerce (ICC) – Arbitration Rules.

6. Anyogu, F., Anushiem, M. I., & Nnaji, N. A. (2023). Role of Arbitration in Dispute Resolution in Nigeria: A Legal Examination. IRLJ, 5(142).

Muhammad Olohuntobi Adekoya is a 200 Level Law Student, Bayero University, Kano.