Alternative Dispute Resolution as a Panacea for Commercial Conflict in Nigeria

The persistent delays, financial burdens, and procedural rigidity associated with litigation in Nigeria continue to undermine commercial confidence and access to justice. Alternative Dispute Resolution (ADR) has emerged as an essential mechanism for addressing these shortcomings by offering flexible, confidential, and time-efficient processes. This article examines the doctrinal foundations, statutory frameworks, and judicial attitudes that shape the development of ADR in Nigeria, with particular reference to the Arbitration and Mediation Act 2023, the Multi-Door Courthouse (MDC) system, and comparative insights from the United Kingdom and the United States. Using doctrinal analysis of legislation, case law and secondary literature, the study assesses the practical effectiveness of ADR mechanisms, including negotiation, mediation, arbitration, conciliation and hybrid processes in commercial dispute resolution. Findings indicate that ADR significantly reduces court congestion and enhances commercial relationships but remains underutilised due to inadequate public awareness, inconsistent judicial support, uneven institutional adoption across states, and misconceptions about ADR’s applicability to certain disputes. The article recommends increased professional training, wider institutionalisation of MDCs, strong judicial enforcement of settlement agreements, and systematic integration of ADR across all levels of legal practice. Overall, the study argues that mainstreaming ADR within Nigeria’s justice system is essential to achieving efficient, accessible, and commercially responsive dispute resolution.