In the last decade, there has been a significant increase in investment activities in Africa. As foreign direct investment and intra-Africa transactions continue to gain momentum, it is expected that there will be a further increase in investment activities in the major African economies and this will inevitably contribute to an increase in the number of commercial disputes to be resolved by arbitration. Using Nigeria as a case study, this paper focuses on the key question of efficiency and whether the arbitration framework in Nigeria is fit for purpose and capable of meeting both current and anticipated demands. To provide a practical, evidence-based analysis, the paper is largely based on a survey conducted by the authors on the efficiency of the arbitration practice in Nigeria. With over three hundred (300) respondents drawn from the six (6) geopolitical zones in Nigeria, the results demonstrate that practitioners are open to engaging with the arbitration system as the preferred dispute resolution mechanism. However, respondents note the efficiency of the system to be impeded by a range of factors, including infrastructural challenges in the judicial system, unhelpful attitudes of stakeholders towards arbitration awards and perceived loopholes in the applicable legislations. The paper concludes by making a number of recommendations towards making the arbitration practice in Nigeria and indeed Africa, fully efficient and competitive.
1. Introduction
In the last decade, there has been a significant increase in investment activities in Africa. At the centre of these activities are countries like Nigeria, South Africa, Angola, Tanzania and Kenya, among other African countries that have enjoyed an inflow of foreign direct investment from different parts of the world. Regional investment and intra-Africa trade have also witnessed an uptick as the continent witnesses a drive for increased mobility of goods and services across Africa.1 With the continued increase in economic growth and population, huge infrastructural and project opportunities, as well as recent developments in other parts of the world, Africa has received more global attention in recent years.2
As global business evolves and sophisticated markets continue to open up in Africa, arbitration has become an increasingly popular method of resolving both local and foreign investment disputes. Domestic courts are progressively enforcing arbitration agreements and awards.3 As international commercial activities, foreign direct investment and intra- Africa transactions continue to gain momentum, it is expected that there
