Big boost for Nigeria’s mediation sector

On 27 November 2023, Nigeria became the thirteenth state-party to ratify the United Nations Convention on International Settlement Agreements Resulting from Mediation. Pelumi Abdul looks at the implications.

Often called the Singapore Convention on Mediation (SCM), the agreement will come into force in Nigeria on 27 May 2024. With the ratification of the SCM, Nigeria has demonstrated its interest in promoting mediation as an effective tool in settling commercial disputes. This will make Nigeria a global hub for the settlement of international commercial disputes, facilitating international trade in the country.

With the ratification of the SCM, parties can apply for the enforcement of international mediated settlement agreements. Dr Olajide Olagunju, a professor and President of International Mediators Association, explained some of the implications: “Ratified by Nigeria by section 87 of the Arbitration and Mediation Act (AMA) 2023, the Singapore Convention on Mediation (SCM) is exclusively for enforcement of settlement agreements from mediation. (See Article 1 of the Convention) SCM’s mediation focus would increase mediation use in Nigeria and eventually Africa, given that Africa mainstreamed mediation over the centuries. Currently in Nigeria, tens of thousands of professional mediators seek opportunities to practise. Added to the robust regulatory framework in the AMA, SCM would widen the mediation market, thus benefiting Nigeria’s professional mediators.”

“Nigeria's commendable move to be the first African country to ratify the Singapore Convention on Mediation signals a strong commitment to efficient dispute resolution, placing the nation at the forefront of global commerce,” commented Olamiposi Fasina, a Nigerian legal practitioner.

“By prioritising mediation over litigation, Nigeria opens its doors to international businesses seeking quicker, cost-effective, and party-friendly solutions while preserving relationships,” she said. “This shift will not only attract foreign investments and promote international trade, but will also possibly contribute to Nigeria's economic growth. While this transition is promising, it is crucial to raise awareness and educate businesses on the benefits and effectiveness of mediation. In essence, Nigeria’s decision is a significant step in the right direction, not just for the country but as a beacon for the entire African continent.”

Joel E. Ighalo, a commercial dispute resolution legal practitioner in Nigeria, believes Nigeria’s ratification of the SCM bodes well for the adoption and practice of mediation as an alternative to litigation in Nigeria. “The essence of the Convention is to enable governments and regional economic integration organisations that wish to strengthen the legal framework in international dispute settlement to become a party to the Convention,” he said.

“Fortunately, the scope of the Arbitration and Mediation Act, by virtue of Section 67(1)(a), applies to international commercial mediation,” Ighalo noted. “This strengthens the Singapore Convention on Mediation, which has a global scope and applies to parties having their place of business in different states or countries. Ultimately, I believe the Singapore Convention on Mediation, considering the institutions and states that are parties, will also strengthen the quality of adjudication, case precedent and jurisprudence associated with resolving international commercial disputes through mediation.”


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