AN OVERVIEW OF CONTEMPORARY ISSUES ON STAY OF PROCEEDINGS IN ARBITRATION PRACTICE IN NIGERIA

Abstract

The manner in which courts apply stays of proceedings in arbitration significantly influences party autonomy, procedural efficiency, and confidence in arbitration as a viable alternative to litigation. In Nigeria, the legal framework governing stays of proceedings has evolved with the enactment of the Arbitration and Mediation Act 2023 (AMA), which replaced the regime under the repealed Arbitration and Conciliation Act. This paper examined the concept of stay of proceedings in arbitration, the challenges associated with its application, and its effectiveness within the Nigerian legal system. It adopted a doctrinal research methodology, relying on qualitative analysis of applicable statutes, decided Nigerian cases, and relevant scholarly literature. Pre-AMA 2023 cases were also examined where necessary to contextualise current judicial approaches. The paper found that the AMA represents a significant step towards strengthening arbitration practice in Nigeria by limiting the use of stays of court proceedings as a means of obstructing arbitral proceedings, subject to statutory exceptions. This has enhanced the enforceability of arbitration agreements and promoted procedural certainty. The paper concluded that although the AMA has laid a strong foundation for an arbitration-friendly legal system, sustained judicial education, clearer procedural guidance, and other supporting measures are necessary to ensure the effective application of stays of proceedings and fully realise the objectives of arbitration in Nigeria.