Supreme Court’s decision in mainstreet Bank capital ltd & Anor v Nigeria reinsurance corp plc: is the Supreme Court pro-arbitration?

Abstract

Unarguably, arbitration has become a universally acceptable means of settling commercial disputes which offers several advantages than litigation. In Nigeria, several legal and institutional efforts are several drawbacks. If arbitration would develop in Nigeria to an enviable height, the role of the judiciary cannot be overemphasized as the court plays vital roles before, during and after the arbitral proceedings. This paper through doctrinal research methodology, critically appraises the Supreme Court’s decision in the case of Mainstreet Bank Capital Ltd v Nigeria Reinsurance Corporation Plc by highlighting its implications on the development od arbitration in Nigeria. It identifies landmines that a person seeking stay of proceedings pending arbitration and drafting an arbitration clanse/agreement, must note to avoid having a party litigates disputes intended to be arbitrated. The paper found the decision has re-echoed the point that an arbitration agreement in a contract : does not oust the jurisdiction of the a court but merely suspends it. The paper recommends for the immediate review of the Arbitration and Conciliation Act 1988 to incorporate the developmental strides in the judgement and urges arbitration practitioners especially lawyers to subscribe to professional training for skill enhancement and professionalism.