Dispute is a natural consequence of human interactions and dispute resolution mechanisms are critical to the peace and harmonious coexistence of every society. In pre-colonial times when there were no Western-styled public courts in many African societies, customary arbitration was an integral part of the dispute resolution mechanisms, and it is argued that it has remained even so today. In Nigeria, customary arbitration remains relevant and has received judicial approval by the Supreme Court in a plethora of cases. This article discusses recent judicial developments on customary arbitration focusing on a recent judgment of the Nigerian Supreme Court – Umeadi v. Chibunze and its implications on customary arbitration in the highly plural Nigerian legal system. Umeadi v. Chibunze recognised the validity of traditional oath-taking as a feature of customary arbitration for parties who rely on it. This article argues that customary arbitration remains one of the most common indigenous dispute resolution mechanisms in Nigeria. This article seeks to interrogate the practice of customary arbitration in Nigeria, ascertain the conditions for its validity and evaluate the utility of traditional oath-taking as a constituent process or feature of customary arbitration in Nigeria. This article will also suggest some reforms to improve the utility of customary arbitration in Nigeria.