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Arbitration Submission Agreement Template for Nigeria

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What is a Arbitration Submission Agreement?

The Arbitration Submission Agreement is utilized when parties have an existing dispute and agree to resolve it through arbitration, rather than litigation in Nigerian courts. This document type is particularly crucial in the Nigerian business environment, where arbitration is increasingly preferred for its flexibility, confidentiality, and enforceability. The agreement must comply with the Nigerian Arbitration and Conciliation Act (ACA) while potentially incorporating international best practices. It typically includes detailed provisions about the dispute's scope, arbitrator selection, applicable laws, and procedural rules. This type of agreement is distinct from pre-dispute arbitration clauses as it is drafted with full knowledge of the dispute's nature and can be tailored specifically to address the particular circumstances. The document becomes especially relevant when parties either didn't have a pre-existing arbitration agreement or wish to modify their existing arbitration arrangements to better suit their current dispute.

Frequently Asked Questions

Is an Arbitration Submission Agreement legally binding in Nigeria?

Yes, an Arbitration Submission Agreement is legally binding in Nigeria under the Arbitration and Conciliation Act (ACA) Cap A18, Laws of the Federation of Nigeria 2004. Once properly executed by all parties, the agreement creates a binding obligation to resolve the dispute through arbitration rather than Nigerian courts. The resulting arbitral award will be enforceable in Nigerian courts and internationally under the New York Convention.

Can Nigerian courts intervene if my Arbitration Submission Agreement is incomplete?

Yes, Nigerian courts may intervene if the Arbitration Submission Agreement is missing essential elements or is fundamentally defective. Under the ACA, courts can assist in appointing arbitrators if the agreement fails to provide adequate selection mechanisms or declare the agreement invalid if it doesn't meet statutory requirements. This could force parties back into court litigation, defeating the purpose of arbitration.

Does my Arbitration Submission Agreement need to specify Nigerian arbitration rules?

While not mandatory, your agreement should specify which arbitration rules apply - whether the Arbitration and Conciliation Act procedures, Lagos Court of Arbitration Rules, or international rules like ICC or UNCITRAL. Under Nigerian law, if no rules are specified, the ACA provisions will apply by default. Clearly stating the applicable rules prevents disputes about procedural matters during arbitration.

How does an Arbitration Submission Agreement differ from an arbitration clause in a contract?

An Arbitration Submission Agreement is created after a dispute has already arisen to resolve that specific dispute through arbitration. An arbitration clause, however, is included in the original contract before any dispute occurs, requiring future disputes to be arbitrated. Both are valid under Nigerian law, but submission agreements address existing conflicts while clauses are preventive measures.

How long does it take to prepare a valid Arbitration Submission Agreement in Nigeria?

A properly drafted Arbitration Submission Agreement typically takes 1-3 weeks to prepare, depending on the complexity of the dispute and negotiation between parties. The process involves defining the dispute scope, agreeing on arbitrator selection, choosing applicable rules, and determining the arbitration seat. Rush jobs often result in defective agreements that may be challenged later.

Which common mistakes invalidate Arbitration Submission Agreements under Nigerian law?

Common mistakes include failing to clearly define the dispute scope, not specifying arbitrator qualifications or selection procedures, omitting the arbitration seat/venue, and inadequate signature requirements. Under the ACA, agreements must also ensure all parties have legal capacity to arbitrate and that the subject matter is arbitrable under Nigerian law. These defects can render the entire agreement unenforceable.

Can I enforce an Arbitration Submission Agreement if the other party refuses to participate?

Yes, under Section 5 of the Arbitration and Conciliation Act, you can apply to the Nigerian High Court to compel the reluctant party to proceed with arbitration. The court will examine the validity of your Arbitration Submission Agreement and, if satisfied, issue an order staying any court proceedings and directing parties to arbitration. Non-compliance with such court orders can result in contempt proceedings.

Reviewed by

Legal Engineer, GenieAI

A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Legal Engineer, GenieAI

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Nigeria

Reviewed by

&

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Arbitration Submission Agreement

An Arbitration Submission Agreement is your pathway to resolving existing disputes outside Nigeria's court system through private arbitration proceedings. When you and another party find yourselves in a commercial or civil dispute, this agreement allows you to bypass traditional litigation and instead submit your matter to qualified arbitrators who can deliver binding decisions under Nigerian law.

When do you need this document?

You need an Arbitration Submission Agreement when you have an active dispute but lack a pre-existing arbitration clause in your original contract. This commonly occurs in business relationships where parties initially planned to resolve disputes through courts but later recognize arbitration's advantages. The document is particularly valuable for international commercial disputes involving foreign investors, joint venture disagreements, construction project conflicts, or intellectual property disputes where you require specialized expertise and confidential proceedings. Nigerian companies dealing with multinational corporations often prefer this route to avoid lengthy court procedures and ensure enforcement under international treaties.

Key legal considerations

Your agreement must clearly define the dispute's scope to prevent future disagreements about what issues the arbitrator can decide. You need to specify the number of arbitrators, their qualifications, and the selection process, as this directly impacts both costs and expertise available for your case. The choice of arbitration rules is crucial—you can select institutional rules like Lagos Court of Arbitration or International Chamber of Commerce rules, or design ad-hoc procedures. Your agreement should address the seat of arbitration, applicable substantive law, language of proceedings, and confidentiality requirements. Consider including provisions for interim measures, document disclosure procedures, and cost allocation between parties to avoid disputes during the arbitration process.

Legal requirements in Nigeria

Under the Nigerian Arbitration and Conciliation Act (ACA), your submission agreement must be in writing and signed by all parties to be legally enforceable. The agreement should comply with constitutional requirements ensuring due process and fundamental rights protection throughout the arbitration proceedings. If your arbitration is seated in Lagos State, additional Lagos State Arbitration Law 2009 provisions may apply, offering enhanced procedural frameworks. For international disputes, ensure your agreement aligns with Nigeria's obligations under the New York Convention for future award enforcement. The Evidence Act 2011 governs what documents and testimony will be admissible during proceedings, so structure your agreement to facilitate proper evidence presentation. Remember that Nigerian courts retain supervisory jurisdiction over arbitration proceedings, particularly for interim measures and setting aside applications, so your agreement should account for potential court involvement when necessary.

GOVERNING LAW

Applicable law

This Arbitration Submission Agreement is drafted to comply with Nigeria law. Key legislation includes:







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