Governor Fashola underscores the need for Nigerian arbitrators to foster economic development
The Governor of Lagos State, Babatunde Raji Fashola, SAN has underscored the critical responsibility of Arbitrators in Nigeria, particularly those in Lagos, to foster economic development in the nation.
The Governor who gave the keynote address at the just concluded 2014 Annual Conference of the Chartered Institute of Arbitration (CIArb), Nigerian branch (via a representative), observed that Lagos State currently represents the highest concentration of trained and experienced arbitrators in the region; with the support of the best legal minds also within the region; an advantage which according to him has led to a number of innovative steps, including the establishment of the Lagos Court of Arbitration (the LCA).
“We initiated the centre (The Lagos Court of Arbitration) to provide a private sector-driven body that is independent of regulation, direction or control by any branch of government; which will, amongst other things, promote the resolution of disputes in the territory of Lagos State by arbitration and other Alternative Dispute Resolution mechanisms apart from litigation. Lagos has remained the centre of commerce for the country. This fact underscores the critical responsibility we all have to fostering the economic development of the nation as a whole,” he stated.
Indeed Lagos, Nigeria’s financial, commercial and industrial nerve centre with over 2,000 manufacturing industries and over 200 financial institutions, currently harbours 60% of the Federation’s total industrial investment and foreign trade while also attracting 65% of Nigeria’s commercial activities. As the commercial and economic nerve centre of the country, Lagos State accounts for the highest volume of foreign and local commercial transactions in Nigeria. Inevitably, the magnitude of the commercial activities in Lagos has resulted in many arbitration-related activities since business managers generally accept that arbitration will be a fast and efficient means of commercial dispute resolution over which the parties may legitimately exercise greater control.
The Governor also expressed hope that the LCA with its current status as a sub-regional and international resource centre for Arbitration and ADR will serve as a reference point to other States and other countries in Africa to emulate.
He underscored the need for the Court of Arbitration to develop a tapestry of dispute resolution services is underscored by the fact that some funding agencies now incorporate one or more ADR processes in their contracts.
“For example,” he notes. “The World Bank has introduced a policy to the effect that Dispute Resolution Boards must be constituted at the inception of every construction project it is financing in excess of US$50million. LCA and your institute can play a role in the constitution of these Boards.”
The Governor also pointed to similar institutions, which have developed rules to govern Dispute Resolution Boards established by them in order to bring themselves in line with this emerging practice. He noted further that many high profile international projects have been implemented with such Boards in place such as Tagus River Bridge Project in Portugal, Xiaolangdi Multipurpose Project in China, etc.
He stressed the need for economies to look towards enforcing obligations as a necessary corollary to economic growth and prosperity. “This is because the confidence of investors both domestic and international becomes exponential when there is the assurance of holding opposite parties to their bargain and promise to perform,” he stated.
At the event which took place at the Shell Hall of the Muson Centre in Lagos, the Governor, noted the place of commerce, trade and dispute settlement in traditional African traditional life, stating that trade and commerce was the centre of life in a typical African culture, with traders of old striking bargains amongst ourselves; making promises and forgiving debts; What according to him formed the early versions of contracts under African rules of civil obligations.
“While commerce developed in various parts of the world, it took centuries for the body of merchants to define the practice and call it ‘arbitration’ and return by export a practice that was already part of our traditional economic life ‘introducing’ it to Africa as commercial arbitration and the cross border equivalent as international commercial arbitration,” he said in his address
Urging practitioners to take up the responsibility of developing the practice in Nigeria and growing the economy, the Governor reiterated that such a growth would require a secure efficient and responsive environment to take root and sustain.
“We as a people have every right and duty to treat alternative dispute resolution as our own home grown tool for equilibrium stability and growth, it never left us and does not need to ‘come’ to the rescue. We must however deploy arbitration and other methods deliberately in an organised and definite manner unlocking its impact by using the other aids conducive to a better investment climate to achieve economic growth. We must do this together across the nation,” he stated in closing.