THE CONTRIBUTIONS OF ALTERNATIVE DISPUTE RESOLUTION TO COMMERCIAL ARBITRATION AND TAX DISPUTES IN NIGERIA

Abstract

Dispute resolution is an inevitable aspect of commercial and economic relations, particularly in developing economies such as Nigeria where litigation remains slow, costly, and procedurally complex. This paper examined the role and contributions of alternative dispute resolution (ADR), with particular emphasis on arbitration, to the effective settlement of commercial and tax disputes in Nigeria. The paper adopts a doctrinal and comparative methodology, relying on statutory provisions, judicial decisions, and scholarly opinions, while drawing lessons from arbitration practices in the United Kingdom and the United States. The findings revealed that arbitration offers significant advantages over litigation, including speed, cost efficiency, confidentiality, procedural flexibility, and improved commercial relationships. Despite these benefits, the paper identified persistent challenges such as limited awareness among stakeholders, judicial delays in enforcing arbitral awards, and outdated legal frameworks that undermine confidence in Nigeria as an arbitration-friendly jurisdiction. The study concluded that arbitration remains a vital tool for enhancing commercial justice and economic growth in Nigeria if properly supported. It recommended the integration of ADR mechanisms into the formal court system, improved judicial 
interpretation of arbitration laws, increased stakeholder education, clearer enforcement guidelines, and the adoption of international best practices to strengthen Nigeria’s commercial arbitration regime.