HYBRID MODELS IN COMMERCIAL DISPUTE RESOLUTION: OPPORTUNITIES AND CHALLENGES IN COMPLEX CASES | Ajiboye Nathaniel Adebayo

HYBRID MODELS IN COMMERCIAL DISPUTE RESOLUTION: OPPORTUNITIES AND CHALLENGES IN COMPLEX CASES | Ajiboye Nathaniel Adebayo

PREAMBLE

Imagine a construction project in Lagos, with five contractors, each from different jurisdictions. A dispute arises over delays and cost overruns. In one of the situations, the arbitration clause kicks in but halfway through the parties realize that they need some sort of interim judicial relief to freeze assets, and at the same time exploring mediation as a way to preserve commercial relationships. By the time the arbitral tribunal is prepared, the dispute has splintered into other court arbitration and mediation proceedings, each proceeding at its own speed, costing each millions[1]. The attempt to create order is yet another site of war.

This is where hybrid models of dispute resolution hold the most promise. Hybrids offer a flexible and less expensive means of coping with the increasing complexity of commercial transactions by incorporating the strengths of litigation, arbitration, mediation and expert determination. Yet, while these models are the future of dispute resolution, these models also raise thorny legal and procedural questions about enforceability, fairness and compatibility with existing legal frameworks.

This essay explores the potential and the pitfalls of hybridizations, particularly, whether hybridization is a viable prospect within Nigeria’s developing dispute resolution marketplace.

 

NATURE OF HYBRID MODELS IN DISPUTE RESOLUTION

Hybrid models are processes that blend two or more forms of dispute resolution within one process, either occurring sequentially or simultaneously, in order to improve efficiency, fairness and enforceability. They are born out of the understanding that litigation, arbitration or mediation alone cannot respond to the needs of every dispute.

 Types of Hybrids

The hybrid ones have included the most recognized of these models:

  1. Med-Arb: where mediation is attempted first, and if mediation fail, the case proceeds to arbitration.
  2. Arb-Med-Arb: becoming popular in Singapore and Hong Kong, arbitration is initiated, mediation is attempted, and if mediation is unsuccessful, arbitration picks up where it left off.
  3. Lit-Arb: courts and arbitral tribunals working in tandem, usually for interim measures, but also for recognition of awards, and joinder of non-signatories.
  4. Multi-tier clauses: sometimes require negotiation → mediation → arbitration/litigation as a condition precedent to each step up the ladder.

 

Legal Recognition

Internationally, these models are backed up by instruments such as the UNCITRAL Model Law on International Commercial Arbitration[2], the New York Convention of 1958[3] and, more recently, the Singapore Convention on Mediation of 2019[4].

In Nigeria, the new Arbitration and Mediation Act 2023 (AMA) has made mediation and hybrid processes a central feature of the law, enabling for example, in Section 67, the enforceability of settlement agreements resulting from mediation[5]. The Act is consistent with international standards[6] and has provided Nigeria the opportunity to begin incorporating hybrid processes into its commercial dispute resolution culture[7].

 Opportunities of Hybrid Models in Complex Commercial Cases

The hybrid form of dispute resolution has a number of distinctive strengths, especially in a time when a commercial dispute has moved from a single linear dispute to rather a multi-factored potential conflict involving cross-border trade, digital assets, and technical partnerships.

  1. Efficiency and Cost Effectiveness: One of the most lauded advantages of hybrid models like Med-Arb is the ability to blend the expediency of mediation with the finality of arbitration[8].
  2. Flexibility for Complex, Multi-Party Disputes: Hybrid processes are very well suited to technical disputes involving multiple stakeholders. These hybrids enable parties to work through temporary complicating technical details in a non-adversarial way before they must enter into adversarial decision-making[9].
  3. Preservation of commercial relationships: in Nigeria’s commercial ecosystem, networks and reputation are frequently more valuable than the contract itself, the hybrid process’s incorporation of mediation makes it possible for relationships to not be irreparably damaged[10].
  4. Enforceability in International Frameworks: Nigeria, having ratified the 1958 New York Convention, subject to enforcement as an arbitral award is that Nigeria acceded to it in 1970. In addition, as the Singapore Convention on Mediation, which Nigeria has signed but not yet ratified, is expected to enter into force soon, mediated settlements may increasingly gain international enforceability[11].
  5. Institutional Development and Nigeria’s Arbitration Hub Aspirations: Hybrid dispute clauses are increasingly being adopted in model rules by relevant institutions[12]. This makes Nigeria now positioned as the natural centre for the resolution of a Africa continent wide commercial disputes under AfCFTA giving local and foreign investors greater confidence with hybrid processes[13].

CHALLENGES OF HYBRID MODELS IN COMPLEX COMMERCIAL CASES

Although hybrid dispute resolution mechanisms can work enormously well, there are legal, cultural, and institutional barriers to hybrid dispute resolution in Nigeria and across Africa.

  1. Concerns About Neutrality: On a scale of neutrality and role conflicts such as Med-Arb, the same individual is often criticised for being both mediator and arbitrator[14].
  2. Absence of Clear Legislative Framework: AMA is silent on hybrid models, therefore, this legal uncertainty discourages parties from creating Med-Arb clauses in contracts with doubt about the legality and recognition provided by Nigerian courts[15].
  3. Judicial Attitudes and Enforcement Risks: In recent years, some courts have been interventionist with arbitration. Without judicial buy-in, hybrid settlements may have resistance in enforcement[16].
  4. Cultural Resistance and Awareness Gaps: Hybrid systems can be viewed as “experimental” or less legitimate. Lawyers often resist mediation stages, noting the impact they have upon professional fees. This cultural challenge remains the most daunting obstacle to hybrid adoption[17].

 

Judicial and Practical Considerations for Nigeria

There are some judicial and practical realities that must be grappled with, for hybrid systems to flourish as part of the Nigerian dispute resolution landscape. AMA has established the paradigm of ADR as modern, but it is mute on hybrids and thus leaves much room for judicial creativity and legislative tweaking.

  1. The Role of the Nigerian Judiciary

The courts remain the arbiters of enforceability. It follows that Nigerian judges must:

  • Recognize Med-Arb/Arb-Med Clauses as Enforceable: In Mekwunye v. Imoukhuede, the Court reaffirmed the sanctity of arbitration agreements, but said nothing about hybrids[18]. A progressive attitude that extends this deference to Med-Arb clauses is crucial.
  • Ensure Confidentiality Protections: Courts must develop jurisprudence to allay parties concerns that confidential mediation disclosures could taint arbitration. Comparative practice from the Hong Kong courts who require written waivers prior to a mediator being able to act as an arbitrator provides a workable Nigerian adaptation[19].

 

  1. The Legislature and Hybrid Gaps

AMA, though a positive development in this respect, does not codify these hybrid models. A future amendment could look to:

  • Singapore’s Med-Arb framework that explicitly provides rules for the transition from mediation to arbitration[20].
  • China’s CIETAC Arbitration Rules re-institutionalize Arb-Med-Arb as a dominant path, demonstrating the success of hybrids when they supported by legislation[21].
  • Codification would provide certainty to parties and courts and would incentivize corporate actors to use these clauses in contracts.

Comparative Insights and Global Lessons

The various jurisdictions that have tried Med-Arb, Arb-Med and Arb-Med-Arb contain lessons that Nigeria can learn from in bolstering her commercial dispute resolution landscape.

  1. Singapore: Institutional Innovation

Singapore is at the forefront of hybrid processes internationally, primarily because of the Arb-Med-Arb Protocol (2014) it has established by collaboration between the Singapore International Arbitration Centre (SIAC) and the Singapore International Mediation Centre (SIMC). Within this system:

  • Arbitration is initiated, only to be diverted to mediation.
  • If mediation succeeds, the settlement can be transformed into a consent award that is enforceable under the New York Convention (1958).
  • In case the mediation does not succeed, arbitration will continue where it left[22].

 

  1. China: Cultural and Institutional Acceptance

In China Arb-Med is embedded in the rules of the China International Economic and Trade Arbitration Commission (CIETAC). Arbitration cases regularly recommend mediation. If the mediation is successful, the result can be recorded as an arbitral award.

China’s success is underpinned by two factors:

  • A cultural Confucian bias towards harmony and compromise[23].
  • State support in the form of legal and institutional frameworks.

 

  1. Hong Kong: Judicial Caution

The courts in Hong Kong, in particular, have taken a more conservative approach when it comes to neutrality issues in Med-Arb. In Gao v. Keeneye, the court disallowed a Med-Arb settlement award because the mediator/arbitrator had obtained confidential information during the mediation process that interfered with his neutrality[24].

  1. European Union: Encouraging but Fragmented

ADR is also promoted at the EU level through the European Directive on Mediation (2008/52/EC), which encourages courts and other institutions to refer cases to mediation. But, the EU has not cemented hybrid models into the region, it is still left to the individual member states.

  1. United States: Pragmatism in Hybrids

Med-Arb in the United States is becoming more popular in labor disputes and complicated commercial disputes. Court supervised settlements, such as those in United States v. Miami exemplify this combination of mediation and enforceable adjudication[25].

 Lessons for Nigeria

AMA provides a timely legal umbrella that can accommodate the embedding of hybrid models. But, global lessons need to be translated into practice within Nigeria:

  • From Singapore

As Singapore has done, Nigeria may consider incorporating Arb-Med-Arb into the various rules and regulations of its institutions, starting with the oil & gas, maritime, and fintech disputes where there is a strong need for cross-border enforceability.

  • From China

Just as in the Arb-Med model[26], it is generally elders who fill the role of mediator and judge in Yoruba and Igbo conflict resolution.

The AMA can build on this by formally incorporating community mediation practices into institutional ADR and ensuring enforceability.

  • From Hong Kong

The Gao Haiyan case warns against impartiality risks where the mediator become arbitrator. The Nigerian government can prevent this by: Amending institutional rules to require written consent from parties before a mediator can act as an arbitrator in the same dispute.

 RECOMMENDATIONS FOR NIGERIA

The potential for hybrid solutions to the resolution of commercial disputes lies in a joint undertaking by institutions.

  1. Judiciary
  • Develop Precedent on Hybrids: Just as in United World Ltd v. MTS Ltd, courts have upheld the autonomy of the arbitral process, they should also explicitly grant the same recognition they give to consent awards achieved through arbitration to those achieved through mediation[27].
  • Issue Practice Directions: Like the Federal High Court (Civil Procedure) Rules, old practice directions could be introduced to aid in recognition and enforcement of hybrid outcomes.
  • Training Judicial Officers

 

  1. Legislature
  • Codify Arb-Med-Arb Procedures: Similar to Singapore, the National Assembly should pass additional regulations strictly addressing Arb-Med-Arb procedures to provide clarification about neutrality and enforceability.
  • Sector-Specific Hybrid Rules: Laws regulating maritime (NIMASA Act), oil and gas (Petroleum Industry Act)[28], and fintech could expressly provide for hybrid dispute resolution for sectoral disputes.
  • Budgetary Support
  1. Executive
  • Policy Framework: The Federal Ministry of Justice can publish a National ADR Policy in which Arb-Med-Arb is made compulsory for federal contracts of a certain value.
  • Capacity-Building
  • Public-Private Partnerships: the executive can promote PPPs to fund ADR centres with hybrid panels in order to lessen the backlog resulting from government related disputes.
  1. Private Enterprises
  • Insert Hybrid Clauses
  • Support Institution Building
  • Cost Saving Incentives

 

CONCLUSION

Commercial disputes are the lifeblood of economic life and the mode in which they are settled often determines economic life or death for businesses. Nigeria stands at a critical juncture, litigation has been too rigid, arbitration and mediation have offered alternatives but neither alone is sufficient for the complexity of the modern cross border commerce. The hybrid model, combining the certainty and finality of arbitration with the flexibility of mediation, provides a compromise which is consistent with international best practices and Nigeria’s own participatory and consensus-oriented culture.

If Nigeria dares to take action now, it will not only attract investor’s confidence but export dispute resolution expertise across Africa. In ten years, the Lagos Arb-Med-Arb Protocol could be as much a point of reference globally as the Singapore Convention is.

[1] Gary Born, International Commercial Arbitration (3rd edn, Kluwer 2021) 54

[2] UNCITRAL, Model Law on International Commercial Arbitration (2006, with amendments)

[3] New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958)

[4] United Nations, Singapore Convention on Mediation (2019)

[5] Arbitration and Mediation Act 2023 (Nigeria), s 67

[6] By ALF, “A Review of the Arbitration and Mediation Act 2023: Charting A New Course In Nigeria.– Alliance Law Firm” https://alliancelawfirm.ng/a-review-of-the-arbitration-and-mediation-act-2023-charting-a-new-course-in-nigeria/#:~:text=The%202023%20Act%2C%20according%20to,Nigerian%20alternative%20dispute%20resolution%20practice. accessed October 1, 2025

[7] “The Nigerian Arbitration and Mediation Act 2023: A Comparison with the Arbitration and Conciliation Act 2004 and Global Practices” (International Bar Association) https://www.ibanet.org/the-nigerian-arbitration-and-mediation-act-2023#:~:text=The%20enactment%20of%20the%20Arbitration,permitting%20third%2Dparty%20funding%20arrangements. accessed October 1, 2025

[8] Born, G., International Arbitration and Forum Selection Agreements (Kluwer Law 2021) 233

[9] Centre VM, “UNDERSTANDING HYBRID ADR ” (VIA Mediation Centre) https://viamediationcentre.org/readnews/ODM4/UNDERSTANDING-HYBRID-ADR accessed October 1, 2025

[10] OB Akinola: Mediation, Conciliation and the Construction Industry in Nigeria: Catalysts or Clogs? African Journal of Law, Ethics, & Education [AJLEE] Vol. 8, No. 3 (2025) https://ajleejournal.com [ISSN: 2756 -6870]

[11] United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention, 2019)

[12] such as the Lagos Court of Arbitration and the Nigerian Institute of Chartered Arbitrators

[13] Nigerian Institute of Chartered Arbitrators, Model Arbitration Rules 2023 (NICArb, Lagos)

[14] Stipanowich T, “‘Switching Hats’: Developing International Practice Guidance for Single-Neutral Med-Arb, ArbMed, and Arb-Med-Arb — International Mediation Institute” (International Mediation Institute, May 4, 2021) https://imimediation.org/2021/05/04/switching-hats-developing-international-practice-guidance-for-single-neutralmed-arb-arb-med-and-arb-medarb/#:~:text=Concerns%20Regarding%20Mixed%20Roles,to%20enforce%20a%20final%20award accessed October 1, 2025

[15] Arbitration and Mediation Act 2023 (Nigeria), esp. Parts I & III

[16] Mekwunye v. Imoukhuede (2019) 13 NWLR (Pt 1690) 439 (SC)

[17] Okorie C and Okorie K, “ALTERNATIVE DISPUTE RESOLUTION IN NIGERIA: ISSUES AND CHALLENGES” (unknown, April 12, 2024) https://www.researchgate.net/publication/379759340_ALTERNATIVE_DISPUTE_RESOLUTION_IN_NIGERIA_ISSUES_AND_CHALLENGES#:~:text=adjournments%2C%20and%20inadequate%20manpower%2C%20which,challenges%20associated%20with%20court%20litigations. accessed October 1, 2025

[18] Mekwunye v. Imoukhuede (2019) 13 NWLR (Pt 1690) 439 (SC)

[19] Gao Haiyan v. Keeneye Holdings (2011) HKCFI 2401 — Hong Kong Court of First Instance on Med-Arb neutrality

[20] Singapore International Arbitration Centre (SIAC) & Singapore International Mediation Centre (SIMC) Arb -MedArb Protocol 2014

[21] China International Economic and Trade Arbitration Commission (CIETAC) Arbitration Rules (2015), Article 47

[22] SIAC & SIMC Arb-Med-Arb Protocol, 2014

[23] Ali, Shahla F., The Legal Framework for Med-Arb Developments in China: Recent Cases, Institutional Rules and Opportunities (October 18, 2016). Dispute Resolution International, DRI 119. PP. 119 -132, 2016 , Available at SSRN: https://ssrn.com/abstract=3216252

[24] Gao Haiyan v. Keeneye Holdings (2011) HKCFI 2401

[25] United States v. City of Miami, 664 F.2d 435 (5th Cir. 1981)

[26] OGBOBE S S ‘The Roles Of Elders In Alternative Dispute Resolution: Nigeria In Context’ NOUN INTERNATIONAL JOURNAL OF PEACE STUDIES AND CONFLICT RESOLUTION [NIJPCR] VOL. 2, NO. 2, AUGUST, 2022

[27] Lagos Multi-Door Courthouse Annual Report 2021

[28] Petroleum Industry Act 2021

Ajiboye Nathaniel Adebayo is a 300 Level student of University of Ilorin. His email: ajiboyenathanieladebayo@gmail.com

Over 50 Books To Include In Your Law Firm’s Library

Over 50 Books To Include In Your Law Firm’s Library

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⚖️ 7 Things Lawyers Need To Do To Stay Relevant in 2026

⚖️ 7 Things Lawyers Need To Do To Stay Relevant in 2026

As lawyers across Nigeria prepare to return to work on Monday, 5th January, the start of a new year is always a good time to reflect on how we can remain relevant in a rapidly evolving legal landscape. The profession is changing — technology, client expectations, and global trends are reshaping the way we practice. Staying ahead requires intentional effort.

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How to Connect and Engage with Lawyers on the Legalnaija Directory

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NICArb Annual Conference & Investiture: Charting a New Path for Arbitration in Africa

The Nigerian Institute of Chartered Arbitrators (NICArb) recently hosted its Annual Conference and Investiture, a landmark gathering that brought together leading voices in law, business, and dispute resolution. The two-day event underscored Africa’s growing role in shaping global arbitration and Alternative Dispute Resolution (ADR) practices.

Opening Highlights

The conference commenced with remarks from Professor Fabian Ajogwu, SAN, President of NICArb, followed by a virtual address from Mr. Wang Chengjie, Vice President of CIETAC. Lady Debbie Obodokwu, FCArb, representing the Annual Planning Committee, emphasized arbitration’s critical role in driving economic growth, sustaining societal stability, and strengthening Nigeria’s justice system.

Mazi Afam Osigwe, SAN, President of the Nigerian Bar Association, urged practitioners to champion ADR as a way to ease court congestion and retain arbitration work within Nigeria. The Attorney-General of the Federation, Prince Lateef Fagbemi, SAN, reinforced this message, describing ADR as an instrument of peace and justice. He revealed ongoing reforms to enhance enforcement, judicial support, and practice directions that will minimize adjournments and reinforce party autonomy.

Plenary Sessions – Day One

– Strengthening Institutional Arbitration in Africa: Panelists explored how African arbitral institutions can evolve from ad hoc practices to structured systems aligned with international standards, drawing lessons from OHADA, UNCITRAL, and the New York Convention.

– Energy, Oil & Gas Disputes: Discussions focused on leveraging arbitration to minimize project disruptions, ensure regulatory compliance, and build investor confidence in Nigeria’s energy sector.

– Construction & Infrastructure Arbitration: Experts examined recurring challenges such as delayed payments, financing gaps, and political risks, while stressing the need for reforms to enhance enforcement and cost efficiency.

– Banking, Finance & Fintech Disputes: With the rise of cross-border lending and digital finance, panelists highlighted the importance of robust institutions and modern legislative frameworks to position Africa as a hub for financial arbitration.

 

Plenary Sessions – Day Two

– Young Arbitrators and ADR Awareness: The “Early Riser Session” spotlighted the contributions of emerging practitioners, who are driving innovation and digital transformation in ADR. Panelists emphasized mentorship and inclusive appointment practices to empower young professionals.

– Institutional Mediation: Mrs. Achere Cole of the Lagos Multi-Door Courthouse showcased Nigeria’s mediation model, noting its replication across 21 states and its efficiency compared to litigation. Mr. Denis of AALCO Hong Kong added insights on Hong Kong’s mediation practices.

– Arbitration and the Courts: Judges and practitioners discussed the judiciary’s role in supporting arbitration, stressing the need for consistent precedents, judicial training, and legislative reforms.

– Ethics in Arbitration and ADR: The final session tackled ethical standards, digital transformation, and cybersecurity risks. Mrs. Caroline Etuk emphasized fairness and integrity as the bedrock of ADR, while Rémi Gerbay and Jonathan Barnes highlighted global ethics frameworks and the importance of secure digital solutions.

 

Key Takeaways

The NICArb Annual Conference reinforced several themes:

– The need for strong institutions and judicial support.

– Retaining disputes within Africa to strengthen local arbitration hubs.

– Empowering young professionals as catalysts for change.

– Mainstreaming mediation alongside arbitration.

– Upholding ethical standards and embracing technology responsibly.

 

Conclusion

With its rich discussions and forward-looking reforms, the NICArb Annual Conference affirmed that Africa is poised to become a thriving hub for domestic and international dispute resolution. By strengthening institutions, embracing innovation, and adhering to global best practices, Nigeria and the continent at large can chart a new path for arbitration and ADR.

HYBRID MODELS IN COMMERCIAL DISPUTE RESOLUTION: OPPORTUNITIES AND CHALLENGES IN COMPLEX CASES | Ajiboye Nathaniel Adebayo

New Arrivals on the Legalnaija Bookstore: Over 30 New Titles

The Nigerian legal landscape continues to evolve, and so does the literature that supports its practitioners. Whether you’re a seasoned litigator, a budding law student, or a client seeking clarity, the latest additions to the Legalnaija bookstore offer a rich blend of scholarship, practical guidance, and judicial insight. Here’s a curated roundup of new titles that every lawyer—and their clients—should know about on www.legalnaija.com/store.

Election Law Mastery:

– Arguments in Election Petition Appeals Volumes I & II

– Guide on Pre-Election Litigation: Principles, Practice & Procedure

– Principles, Proof and Practice of Grounds and Reliefs in Election Petition Litigation

– Arguments on Witness Statements, Forensic Expert Reports and Technicalities in Election Petition Proceedings

Law Practice and Procedure: Tools for the Courtroom Craftsman

– Law Practice Kit by Abdulrasheed Ibrahim

– Interlocutory Applications (4th Edition) by Ugochukwu Mike Mgbeahuru

– Law of Injunctions (8th Edition) by G. S. Gupta

– Marriage and Divorce Law by Emeka Chianu

– Advocacy Law and Practice in Nigeria by Anselm Uchechukwu Abonyi, Ph.D & Chidimma Stella Nwakoby, Ph.D

Rights and Constitutional Law: Defending Liberties

– Fundamental Rights (Enforcement Procedure) Rules, 2009 Volumes 1 & 2 by Chief Ogwu J. Onoja, SAN

Digital and Technology Law: Navigating the New Frontier

– Digital Rights in Nigeria: Through the Cases

– Digital Investments: Law and Practice by Uchechukwu Esther Oloworaran, Ph.D

Specialized Legal Fields: From Airspace to Operating Rooms

– Aviation Law by Callistus E. Uwakwe

– Forensic Law in Nigeria by Oluwatomi A. Ajayi

– Medical Law and Ethics in Nigeria by Festus O. Emiri

– Practical Approach to Labour Law in Nigeria by Kehinde H. Bamiiwola

Maritime Law Publications: Anchored in Practice

– The Maritime Newsletter Volumes One & Two

Bonus Picks from the Shelf

– MATRIMONIAL CAUSES IN NIGERIA – LAW AND PRACTICE by Nasiru Tijani, PhD

– Juvenile Justice Administration in Nigeria by Nneka Umejiaku, Ph.D

– Nigerian Telecommunications Law and Regulation by Quasim Odunmbaku & Rotimi Akapo

– Corporate Governance in Nigeria: Law & Practice by Fabian Ajogwu, SAN

– Nigerian Courtroom Canon by Levi I. Shaapera, Esq.

– A Compendium of Nigerian Tax Cases by Prof. Abiola Sanni

– Contemporary Banking Law and Practice by Sam Chukwuka Onyeka, Ph.D

– Readings on Election Security Management edited by Solomon Ehigiator Arase

– Issues in Kidnapping Trials by Kelechi P. Ikoroha

These new titles are more than just books—they’re strategic assets for lawyers seeking to sharpen their practice, deepen their knowledge, and better serve their clients. Whether you’re preparing for trial, advising on policy, or mentoring the next generation of legal minds, the Nigerian Bookstore has something transformative waiting for you.

Stay informed. Stay empowered. Stay ahead.

Visit www.legalnaija.com/store