Avoid Costly Litigation: Why Every Nigerian Business Needs an Arbitration Agreement (2026 Guide)
If you run a business in Nigeria, you are probably familiar with this.
It begins with a simple dispute: a supplier fails to deliver, a partner breaks an agreement, or a contractor disappears with your money. At first, you stay calm and tell your lawyer, “Let’s go to court.” After all, isn’t that what everyone does?
Months turn into years, and before you know it, that “small case” that should have been resolved in six months is suddenly dragging into its seventh year. The judge has been transferred twice, and on many occasions, opposing counsel is “seeking adjournment.” Your file goes missing more than once, and your lawyer comes back from court with updates filled with legal jargon and technical arguments that don’t speak to your actual problem. Meanwhile, your business is suffering. Cash is tied up, time is wasted, and energy is drained.
To make it worse, some cases in Nigeria can drag on for 10 to 20 years, with some lost in the system entirely. You start to deal with a painful truth: the court system isn’t built for the speed your business needs to survive. This is why more Nigerian businesses, big corporations, are quietly shifting to Arbitration as an effective alternative solution.
Why Arbitration Is the Smart Business Move
Imagine resolving your dispute in months, not decades and avoiding endless adjournments, ego battles, and legal theatrics that too often overshadow the real issues in dispute. Exactly, that’s what arbitration offers: a modern case-management system built for results, not drama.
Here are the benefits:
1. Dispute Fast Resolution
Most business disputes can be resolved in under a year, especially when handled by an experienced law firm. There are no lost files, no judge transfers, and no unnecessary motions. Just the issues at hand and the solutions.
2. You Choose the Decision-Makers
Instead of relying on a random judge who may be juggling a heavy docket, you can select experienced Arbitrators who understand your industry.
3. Zero Drama, Zero Noise
No public display of drama, no shouting about “the case,” and no adjournments because someone forgot a wig. Arbitration is private, calm, and focused. Everything is confidential.
4. Focus on What Matters
Litigation is often bogged down by rules, filings, procedures, and loopholes. Arbitration gets straight to the heart of the matter.
5. Protect Your Business Relationships
Arbitration is designed to minimise hostility. Instead of damaging partnerships through prolonged fights, it fosters an environment conducive to resolution.
6. Keep Your Business Moving
Because of its speed, structure, and minimal disruptions, you can concentrate on running your business while the dispute is managed, without draining your team or finances.
7. Encourages Discipline
When your opponent realises you have a strong arbitration agreement, they become more careful and cooperative.
At OAL, arbitration is our first choice for resolving commercial disputes. It consistently delivers more wins, satisfied clients, and predictable outcomes than litigation. Of course, there are circumstances where litigation is unavoidable, and when that happens, we litigate with full vigour.
No dispute resolved through Alternative Dispute Resolution (ADR) at OAL has ever lasted up to a year, not one. We have assisted clients in resolving disputes and provided effective solutions all in good time.
Conclusion:
If you’re tired of waiting, fed up with courts, and weary of losing time and money, then arbitration is your best bet.
OAL has experienced Counsel and Arbitrators who provide effective solutions
Reach out to our experts today; we’re ready when you are.