ARBITRATION: THIRD PARTY FUNDING NEW FRONTIERS IN DISPUTE RESOLUTION IN NIGERIA

Introduction

The cost of arbitration proceedings has remained one of the major deterrents for parties seeking to resolve commercial disputes. While this cost can vary significantly depending on various factors such as complexity of the dispute, the jurisdiction, and the arbitral institution, it comprises of legal fees, expert fees, cost of procuring witnesses, arbitrator fees and administrative expenses. This has been a challenge for certain parties who may be deterred by the burgeoning cost of the arbitration process. The Arbitration and Mediation Act 2023 (AMA) has introduced the practice of third-party funding ('TPF') to Nigeria's arbitration landscape, as a modern means of managing the cost of, thereby increasing the access to arbitral remedies.

This article discusses the current position of third-par ty funding in Nigeria, the practicality of TPF in Nigeria, the concerns that may arise with the adoption of third party funding and how to address these concerns.