Section 7 Arbitration and Mediation Act

Section 7 Arbitration and Mediation Act 2023 is about Appointment of arbitrators. It is under Part I (Arbitration) of the Act.

(1) A person shall not be precluded, by reason of the person’s nationality, from acting as an arbitrator, unless it is agreed to by the parties.

(2) Parties may agree on a procedure of appointing an arbitrator, subject to the provisions of
subsections (4) and (5).

(3) Subject to section 59 of this Act, where the parties fail to agree on the procedure for appointing an arbitrator under subsection (2), in an arbitration –

(a) with three arbitrators, each party shall appoint one arbitrator, and the two arbitrators appointed shall appoint the third arbitrator. Where a party fails to appoint the arbitrator within 30 days of receipt of a request to do so from the other party, or where the two arbitrators appointed by the parties fail to agree on the third arbitrator within 30 days of their appointment, the appointment shall be made, upon request of a party, by the appointing authority designated by the parties or, failing such designation, by an arbitral institution in Nigeria or by the Court;

(b) with a sole arbitrator, where the parties are unable to agree on the arbitrator within 30 days after the receipt of a written communication containing a request for the dispute to be referred to arbitration by the other party or parties, the arbitrator shall be appointed, upon request of a party, by the appointing authority designated by the parties or, failing such designation, by any arbitral institution in Nigeria or by the Court;

(c) where the parties to a dispute are more than two, and the arbitration agreement entitles each party to nominate an arbitrator, if within 30 days of the receipt of a written communication containing a request for the dispute to be referred to arbitration, the parties have not agreed in writing that the disputing parties represent two separate sides for the formation of the arbitral tribunal as claimant and respondent respectively, then the appointing authority designated by the parties or, failing such designation, any arbitral institution in Nigeria or the Court shall, upon request of a party, have the power to appoint the arbitral tribunal without regard to any party’s nomination;

( d) where the designated appointing authority or, failing such designation, any arbitral institution in Nigeria or the Court is requested to appoint an arbitrator under the provisions of this section, the party which makes the request shall send to the appointing authority, arbitral institution or Court,
a copy of the request for a dispute to be referred to arbitration, a copy of the contract out of or in relation to which the dispute has arisen and a copy of the arbitration agreement if it is not contained in the contract. The appointing authority, arbitral institution or Court may require from either party such other information as it deems necessary to fulfil its functions under this Act; and

(e) where a party proposes the names of one or more persons for appointment as arbitrators, their full names, addresses and nationalities shall be indicated, together with a description of their qualifications.

(4) Save as otherwise specifically provided under this Act, where, under an appointment procedure agreed upon by the parties –
(a) a party fails to act as required under the procedure;
(b) the parties, or the two arbitrators appointed by the parties, are unable to appoint the third and presiding arbitrator; or
(c) the appointing authority, a third party, including an arbitral institution fails to perform any function entrusted to it under such appointment procedure, any party may request the Court to take the necessary action, or perform the necessary function, unless the appointment procedure agreed by the parties provides other means for securing the appointment.

(5) The appointing authority, arbitral institution or the Court exercising its power of appointment under this section shall –
(a) appoint within 30 days of the request;
(b) have due regard to the qualification required of an arbitrator in the arbitration agreement and to the considerations as are likely to secure the appointment of an independent and impartial arbitrator; and
(c) in the case of a sole or third arbitrator, take into account the advisability of appointing an arbitrator of a nationality other than those of the parties.

(6) The constitution of the arbitral tribunal shall not be hindered by any controversy with respect to the arbitral institution chosen by a party.