1 month ago
20 ARTICLE AD
Stakeholders hail the Alternative Dispute Resolution’s transformative impact on Nigeria’s justice system, driving swift resolutions and decongesting courts, writes Onozure Dania
The growing use of Alternative Dispute Resolution mechanisms is reshaping Nigeria’s justice system, with stakeholders praising its ability to decongest courts and expedite justice delivery.
This was the central message at the first annual Multi-Door Courthouse & Alternative Dispute Resolution Stakeholders Summit, held recently in Victoria Island, Lagos.
The summit, themed “ADR: A Panacea for Speedy Resolution of Commercial Disputes and Enhanced Access to Justice,” brought together top legal minds, government officials, and business leaders to explore the benefits of ADR in resolving disputes more swiftly and cost-effectively than traditional litigation.
In his keynote address, Lagos State Governor, Babajide Sanwo-Olu, represented by Secretary to the State Government, Mrs Abimbola Salu-Hundeyin, underscored the transformative impact of the Lagos Multi-Door Courthouse on the state’s justice system.
He revealed that the LMDC had successfully recovered N55.15bn and $56.29m through settlements, positioning itself as a critical component of Lagos’ dispute resolution framework.
Sanwo-Olu remarked, “The Lagos Multi-Door Courthouse now stands as a beacon of hope for both individuals and businesses, offering a practical, inclusive, and more efficient alternative to traditional litigation.
These initiatives have not only reduced the number of court cases but have also improved the overall administration of justice, making legal services more accessible to Lagosians.”
He further explained that ADR mechanisms had been instrumental in driving Lagos State’s economic growth by fostering a more investor-friendly environment.
“An efficient dispute resolution framework builds confidence among local and international investors, enhancing the ease of doing business, attracting foreign direct investment, and driving economic prosperity,” he said.
ADR’s role in commercial disputes
Also speaking at the summit, Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, explained ADR’s pivotal role in transforming Nigeria’s legal landscape.
According to her, ADR mechanisms like mediation and arbitration provide quicker, more cost-effective alternatives to litigation, particularly for businesses.
“In today’s fast-paced global economy, where commerce moves rapidly, ADR allows parties to resolve disputes flexibly and confidentially, preserving critical business relationships,” she said.
Justice Kekere-Ekun also pointed out that Nigeria’s traditional court system struggles with backlog and lengthy timelines, which were detrimental to commercial entities.
She stated, “Protracted legal battles can erode investor confidence and stifle business operations. However, ADR offers practical solutions, enabling disputes to be settled efficiently while maintaining confidentiality.”
The CJN urged stakeholders, judiciary members, legal professionals, and business leaders to continue to promote ADR as a viable solution for easing the burden on the courts.
Justice Kekere-Ekun also called for the mandatory referral of certain cases to ADR centres like the LMDC, saying this would help reduce the overwhelming backlog of cases in the conventional court system.
“The responsibility to promote ADR lies with all of us,” she remarked.
She encouraged collaboration across all sectors to build a more robust dispute-resolution framework.
Challenges
Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), also addressed the gathering, outlining some of the challenges that hinder ADR’s widespread adoption in Nigeria.
He noted that despite the numerous benefits of ADR, there remained a reluctance among some parties and legal practitioners to fully embrace it.
“The preference for adversarial litigation is still prevalent, even in commercial cases,” Fagbemi said.
He explained that efforts by state judiciaries to fast-track commercial cases through dedicated courts had not yielded the expected results and that increased awareness of ADR’s advantages was needed.
He also raised concerns over the enforceability of settlement agreements from ADR proceedings, which sometimes led parties back to court. “This creates a cycle where ADR agreements still require court intervention, defeating the purpose of quick resolution,” he noted.
Fagbemi stressed that ADR could play a critical role in addressing Nigeria’s case backlog, citing over 243,000 cases pending in the superior courts.
“One of the key solutions to reducing this overwhelming backlog is to encourage greater use of ADR,” he said.
Fagbemi also referenced Chief Justice Kekere-Ekun’s comments at a recent judges’ conference, where ADR methods were highlighted as essential to improving the efficiency of the justice system.
Technological integration in ADR
Lagos State Chief Judge, Justice Kazeem Alogba, also in his remarks emphasised the importance of continuous collaboration between the judiciary, private sector, and other stakeholders in advancing ADR.
Justice Alogba praised the LMDC for its pivotal role in enhancing access to justice, noting that the introduction of technology into ADR processes has significantly improved efficiency.
“By enhancing ADR mechanisms and integrating technology, we ensure justice is timely, fair, and accessible for all,” Alogba stated.
He emphasised the need for sustained efforts to modernise ADR processes, making them more efficient and less burdensome on the conventional court system.
Justice Alogba’s vision for the future is one where justice is not only delivered swiftly but also cost-effectively, benefitting all parties involved.
He called for more investment in technology and deeper collaboration with the private sector to ensure Lagos remains a leader in innovative justice solutions.
ADR’s economic contributions
Chairperson of the LMDC Governing Council, Justice Jumoke Pedro, shared insights on the economic impact of ADR in Lagos State, particularly through the LMDC.
According to her, the LMDC’s efforts contribute significantly to the state’s economy by facilitating the timely and amicable resolution of disputes.
“As of August 2024, the LMDC successfully handled 25,481 cases, achieving a 56 per cent success rate,” Justice Pedro reported. The total recoveries from these cases amount to over N55bn and $56m, resources that would otherwise have been locked up in prolonged litigation.
She explained that this recovery had positively impacted the commercial sector, fostering foreign direct investment into Lagos and strengthening trust in the state’s judicial system.
“By supplementing traditional litigation with ADR mechanisms, we promote an enabling environment for business growth,”
Justice Pedro said, adding that the LMDC’s objectives align with the Lagos State Government’s THEMES+ agenda, particularly in the areas of governance, technology, and social inclusion.
Justice Pedro also highlighted the LMDC’s evolution into a full-fledged ADR training institution, offering mediation and dispute resolution training to professionals across various sectors, including law, engineering, and medicine.
“These programs ensure that ADR services in Lagos meet international best practices,” she noted.
“Justice must not only be done; it must be seen to be done—efficiently and fairly,” Justice Pedro said in her closing remarks.
“For ADR to remain effective, we must modernise it to keep pace with technological innovations and the evolving nature of commercial transactions. This requires the commitment of all stakeholders—government, judiciary, legal professionals, and businesses.”
Justice Pedro emphasised the importance of continuous investment in ADR capacity building and the promotion of the culture of dispute resolution through dialogue rather than adversarial methods.
“We are at a pivotal moment in Nigeria’s justice system and ADR is the key to unlocking a more accessible, transparent, and reliable pathway to justice for all,” she said.
On his part, Justice Rahman Oshodi reflected on ADR’s roots in African traditions.
Justice Oshodi provided a unique perspective on the cultural significance of ADR in Nigeria.
According to Oshodi, ADR is deeply rooted in African traditions of communal problem-solving.
“ADR is not just modern but culturally intrinsic to us. It exemplifies a return to a form of justice that our communities have always practised,” Oshodi explained.
He cited the success of the LMDC since it was established in 2002, as proof of ADR’s effectiveness in reducing case backlogs and providing faster justice.
“In 2023 alone, the LMDC handled 2,975 cases, with over 70 per cent of these being court referrals,” Oshodi said.
He also discussed the role of technology in making ADR more efficient, recounting his experience with a fully digital arbitration process in 2016.
“Every aspect of the arbitration was conducted via email, from filing to the final award. This approach expedited the process and reduced costs significantly,” he noted.
Oshodi advocated for the wider adoption of technology, including Artificial Intelligence, in ADR processes to streamline operations and make dispute resolution more accessible.
Integration of AI in ADR
Also, a Senior Advocate of Nigeria Kehinde Aina, in his presentation, emphasised the need for Nigeria’s legal system to evolve in response to modern commercial transactions, especially with the rise of cryptocurrencies and borderless business operations.
He referred to the current landscape as the “BHS Syndrome,” describing disputes as “Borderless, Hydra-headed, and Sophisticated.”
“Today, transactions happen on a scale previously unimaginable, and our justice system must adapt to this reality,” Aina said.
He proposed the integration of AI into ADR mechanisms to improve efficiency and decision-making.
Aina cited the 2024 Nobel Prize’s recognition of AI’s transformative potential as a turning point for industries worldwide, including law.
“Generative AI can automate time-consuming tasks, suggest appropriate ADR methods, and even draft legal documents, allowing judges and mediators to focus on more critical aspects of cases,” he explained.
He warned that failure to embrace AI and other technological advancements could render Nigeria’s justice system obsolete in the face of global commerce’s rapid evolution.
“The future of the legal profession is intimately tied to advancements in AI, and the time to act is now,” Aina concluded.
Bold reforms and collaboration
The summit concluded with a consensus that while the Lagos Multi-Door Courthouse had achieved significant successes over the past two decades, bold reforms are needed to ensure ADR continues to meet the demands of Nigeria’s rapidly changing commercial environment.
Stakeholders agreed that deeper collaboration, technological integration, and public awareness campaigns were essential to making ADR a more attractive and viable option for dispute resolution in Nigeria.
