Stay of Proceedings in Nigerian Law of Arbitration - An Analysis of its Functions, Applications and Problems

Abstract

The power of courts to stay litigation proceedings for commercial arbitration tribunals is universally recognized. In its sections 4 and 5, Nigeria’s Arbitration and Conciliation Act 1988 (now Cap. A. 18 LFN 2004) contain two unusual provisions for stay of proceedings. These are respectively influenced by the UJVCITRAL Model Arbitration Law 1985 and the old Arbitration Act 1914. (Cap. 13 LFN 1958) In view of the different historical and philosophical backgrounds, the intention, nature, scope, and functions of the sections have proven controversial and difficult in interpretation and application to courts and scholars. From the standpoint of the new pro-arbitration environment, this article provides a legitimizing functional analysis of the provisions. It distinguishes the sections’ objects and scope, and identifies flaws of interpretation. There is in existence a deliberate and justifiable two tier-structure automatically obligating arbitration at the will of a party and a further ‘second chance’provision. They are applicable to both domestic and international arbitration. Finally, the article expounds new and wider horizons of application, and specifies duties of the courts in the management of the provisions.