THIRD-PARTY FUNDING ARBITRATION IN NIGERIA: BALANCING ACCESS TO JUSTICE WITH ETHICAL CONSIDERATIONS

Abstract

Arbitration is a dispute resolution mechanism that has evolved over the years and is still evolving even in our legal eco-system. It is the process that involves the use of a neutral party or parties in resolving or settling disputes. It is termed an alternative to litigation basically for possessing the features of speed and confidentiality. However, arbitration in recent times, though an alternative is beginning to experience high costs of implementation. In situations where the dispute is of an international nature, parties are burdened with the onerous task of catering for the welfare of the arbitrators, lawyers, witnesses and even the venue where the arbitration is to be conducted. This very often takes a significant toll financially on the parties, hence the concept of Third-Party Funding in Nigerian Arbitration. This paper sought to examine the concept of third-party funding in arbitration as a response to accessing justice in line with other ethical considerations. The methodology deployed is doctrinal with the use of primary and secondary sources being the content of Statutes and Case law. Text books and Online sources were also relied upon for secondary sources. The study found that Third Party Funding in arbitration has been introduced as a way to address the high cost of arbitration but still poses some challenges. It recommended that parties who intend to adopt this way of financing the resolution of dispute, must take adequate care and caution when preparing the terms of such agreements in Nigeria.