Both routes resolve disputes, but they suit different situations. Here is how to think about the choice.
When a commercial relationship breaks down, the forum you choose shapes your cost, speed, confidentiality and control over the process.
When arbitration fits
Arbitration is private, allows parties to choose decision-makers with relevant expertise and can be tailored to the dispute. Nigeria's Arbitration and Mediation Act 2023 provides a modern statutory framework. Arbitration suits parties who value confidentiality or who operate across borders.
When litigation fits
Court proceedings offer powerful interim remedies, a public and precedent-generating process and, in some cases, access to procedures that are unavailable elsewhere. Litigation may suit disputes that need urgent injunctive relief or involve third parties who are not bound by an arbitration agreement.
Decide before the dispute
The best time to choose is when the contract is being drafted. A well-written dispute-resolution clause specifies the seat, rules, number of arbitrators and language — and avoids expensive arguments about the process itself.
This article is general information and not legal advice.
This article is general information, not legal advice. Laws change and every situation is different — speak to a lawyer about yours.