Notice of Arbitration Nigeria

In accordance with the provisions of section 17, Arbitration and Conciliation Act (ACA)), where there is a default of an agreement by the parties, the arbitral proceedings in respect of such a dispute may commence on the date the request to refer the dispute to arbitration is received by the other party. The full commencement of the arbitral proceedings arbitrators occurs when arbitrator(s) has been appointed in accordance with the agreement of the parties.

Arbitration is a process by which feuding parties, in accordance with their previous agreement, submit a dispute to one or more arbitrators who make a binding decision in respect of the dispute. The arbitral process is deemed to have commenced a Notice of Arbitration has been sent to the other party.

Contents of a Notice of Arbitration

A notice of arbitration must contain the following information:

  • A demand that the dispute is referred to arbitration.
  • The names and addresses of the parties.
  • A reference to the arbitration clause or the separate arbitration agreement that is invoked.
  • A reference to the contract out of or in relation to which the dispute arises.
  • The general nature of the claim and an indication of the amount involved, if any.
  • The relief or remedy sought.
  • A proposal as to the number of arbitrators (that is, one or three), if the parties have not previously agreed on that.

Applicable rules and powers:

By default, domestic arbitrations are governed by the Arbitration Rules in the schedule to the Arbitration and Conciliation Act (ACA). Where the arbitration is deemed to be international arbitration, parties are free to determine the applicable procedural rules. Section 34 of the Arbitration and Conciliation Act (ACA) severely limits the scope of court intervention in the arbitration process, so the ability to frustrate arbitration through backdoor litigation is usually frowned at by the court.

Finally, it is worthy of note that the agreement of parties often determines the seat, governing law and rules of arbitral proceedings. The arbitration proceedings can be initiated through a service of a Notice of Arbitration by one party on the other party, it can be said to have fully commenced when the appointed arbitrator or arbitrators have accepted to adjudicate on the arbitration by convening the first arbitral meeting and setting the agenda for the arbitration.

By Arbitration & Disputes Resolution Team at Resolution Law Firm