What are the advantages of arbitration in Nigeria?
Asked by: Rita Glover | Last update: August 31, 2025Score: 5/5 (16 votes)
The main advantage of arbitration is to avoid long and expensive litigation process. The process of arbitration in Nigeria is cheaper and it allows individuals to represent themselves easily although they are allowed to have legal representation.
What are the advantages of arbitration?
Arbitration is often resolved much more quickly than court proceedings, so attorney fees are reduced. Also, there are lower costs in preparing for the arbitration than there are in preparing for a jury trial. For binding arbitration, there are limited opportunities for appeal.
Who usually wins in arbitration?
An empirical study conducted by economic firm ndp | analytics and released by ILR shows that employees and consumers win more money, more often, and more quickly in arbitration than in a lawsuit. Employees were more likely to win in arbitration (almost 38 percent) than in a lawsuit (almost 11 percent).
Is it better to settle or go to arbitration?
In most cases, arbitration tends to be more cost-effective. While arbitrator's fees can be significant, the overall expenses are generally lower because of limited discovery and quicker resolution.
What is the new arbitration law in Nigeria?
The Arbitration and Mediation Act of 2023 has established a legal framework that enhances the transparency, speed, autonomy, and enforceability of arbitral awards and mediation settlement agreements.
LAW: LITIGATION vs. ARBITRATION | 5 Advantages of arbitration in Nigeria
Who bears the cost of arbitration in Nigeria?
In principle, unless the parties have agreed otherwise, the unsuccessful party bears the costs of the arbitration. However, the arbitral tribunal may apportion such costs between the parties if it determines that apportionment is reasonable taking into account the circumstances of the case.
How many years of arbitration are there?
Eligibility arbitration is entirely dependent on service time accumulated by a player. Players become eligible for arbitration after completing at least 3 years of service time but before the 6 years necessary to qualify for free agency.
What happens if you lose in arbitration?
What Happens If You Lose in Arbitration? Losing in arbitration means the arbitrator's decision goes against you and the arbitrator may issue an award. This could involve paying money damages, returning property, paying the other party's arbitration or legal fees, or taking some other action.
How much does arbitration cost?
Your Arbitrator
This person serves as a neutral third party who will ultimately make a binding or non-binding decision in your case. Private arbitrators in California can charge anywhere from $200 to $1,000 per hour.
How long after arbitration is settlement?
After the briefing is complete, the arbitrator issues a written decision, usually 30-90 days after receipt of the last brief. In all, it may take up to six months from the conclusion of the hearing until the issuance of a decision. unDer What CirCumstanCes Will the Case be settleD?
What not to say during arbitration?
Always get straight to the merits without berating the other side or whining about how badly it has treated you. Another threat to your credibility is the “kitchen sink” arbitration demand or a response that includes numerous claims or defenses that have little chance of succeeding.
How long does an arbitration decision take?
You can usually expect to hear the arbitrator's decision within 45 days of the arbitrator closing the proceedings. However, this timescale is usually set by agreement between you, the other party and the arbitrator.
What evidence is allowed in arbitration?
Any party may offer written reports of any expert witness, medical records and bills (including physiotherapy, nursing, and prescription bills), documentary evidence of loss of income, property damage repair bills or estimates, police reports concerning an accident that gave rise to the case, other bills and invoices, ...
What is a major disadvantage of arbitration?
One of the primary disadvantages of arbitration is the limited formal discovery process it offers. Unlike litigation, where parties have the opportunity to gather information through depositions, interrogatories, and requests for documents, arbitration tends to have a more streamlined discovery procedure.
What is the main purpose of arbitration?
Arbitration has four types of functions: resolving contractual disputes between management and labor, addressing interests of different parties in bargaining situations such as public sector labor relations, settling litigated claims through court-annexed programs, and resolving community disputes.
Who attends arbitration?
Who must attend the arbitration? Parties must attend the arbitration hearing, and may be represented by an attorney. The arbitration hearing may proceed and an award issued in the absence of a party who, after due notice, fails to be present or to obtain a continuance.
Who pays attorney fees in arbitration?
The American Rule (parties generally bear their own costs and fees). The pure “costs follow the event” rule (the loser pays all costs and fees). The pro rata “costs follow the event” rule (the loser pays costs and fees in proportion with the outcome).
Is it better to go to court or arbitration?
While arbitration offers advantages such as cost-efficiency, speed, and privacy, litigation provides opportunities to set legal precedents and compel uncooperative parties. To make the right choice, consider the unique circumstances of each case and the preferences of your clients.
Who pays the costs of arbitration?
In the final award the arbitral tribunal shall decide which of the parties shall bear the costs of the arbitration fixed by the Court or in what proportion they shall be borne by the parties.
How long is the arbitration process?
However, when a conciliation matter remains unresolved the party can refer the matter to arbitration. This is a 90-day process.
Can you sue someone after arbitration?
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
What happens after you win arbitration?
The arbitrator will write the award and the AAA® will send that to the parties once it is ready. Depending on the rules and the parties' arbitration agreement, the date the award must be given to the parties may differ, but it is usually between 14 and 30 days from the close of hearings.
What is the next step after arbitration?
A party may wait for the results, or phone the Arbitration Center for the results. The award will then be filed with the respective Office of the Circuit Clerk. The Circuit Clerk will mail the Award of Arbitrators and a Notice of Award to all parties. The Notice of Award will provide the next court date for the case.
What is salary arbitration?
Salary arbitration ensures fair compensation for players and promotes negotiations between teams and players. Before the arbitration hearing, players and teams have the opportunity to negotiate and reach an agreement on a contract, which may help them avoid the arbitration process.
How long does arbitration take to settle?
Arbitration is similar to going to court, but faster, cheaper and less complex than litigation. If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.