Arbitration: 2025 Wrap-Up and 2026 Outlook

We are pleased to share our Arbitration: 2025 Wrap-Up and 2026 Outlook.

2025 was a busy year for arbitration in Nigeria. Courts backed the finality of awards. They also moved the system closer to international practice.

Nigerian courts and foreign awards

The Court of Appeal shifted its position in OIS v Hempel. It held that it has no power to set aside a foreign award. That marks a clear departure from its earlier ruling in Limak v Sahelian.

The reasoning is straightforward. The parties chose a London seat and the LCIA Rules. Only the courts of the seat, therefore, hold supervisory power to set the award aside.

Both the Court of Appeal and the Supreme Court also narrowed public policy defences to enforcement. Taken together, these rulings point to a maturing, pro-enforcement body of case law.

What happened elsewhere

International developments shaped strategy too. The English Supreme Court allowed payment of legal costs in the currency actually incurred.

Courts also split on sovereign consent to arbitrate. UK authority may give binding deference to a foreign court’s findings on consent. US practice does not extend the same deference to similar foreign arbitral decisions.

Jurisdictions diverge on ICSID awards as well. Some allow an assignee to enforce; others do not. That difference matters for parties and for litigation funders weighing their exposure.

Institutions and procedure

The wider ecosystem kept developing. The Lagos Chamber of Commerce International Arbitration Centre worked to operationalise the Award Review Tribunal under the Arbitration and Mediation Act 2023. Meanwhile, the Chartered Institute of Arbitrators issued practical guidance on artificial intelligence and on third-party funding.

Both efforts answer real user needs. They address efficient review, transparency and how funding risk should be allocated.

What we expect in 2026

We expect Nigerian courts to hold their pro-arbitration line. Scrutiny of arbitrator disclosure and impartiality should tighten. Use of mediation and the Award Review Tribunal is likely to grow.

The dispute pipeline should also get busier. Banking sector recapitalisation is likely to drive shareholder and M&A conflicts. In addition, investor-state, energy, mining, construction, PPP, ESG and climate disputes look set to rise across Nigeria and the region.

The overall effect is a more predictable forum. Nigeria increasingly offers a reliable, internationally aligned venue for high-value cross-border disputes.

Our report covers each of these decisions and projections in full. To read it, download the report using the button below.