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Back in January, it was reported there was dispute between Africoat, a pipe-coating and logistics company, operating in the LADOL Free Zone in Lagos and LADOL.

The dispute focused on the termination of Africoat’s operating licence and eviction from the free zone by LADOL. But Africoat insisted that the eviction notice was contrary to the service agreement between it and LADOL because it only gave the company nine days to remove its equipment against the 180 days specified by the agreement.

Investigation has revealed that Africoat has served Notice of Arbitration on LADOL in a suit number FHC/L/CS636/19, at a Federal High Court in Lagos.

According to the court document, Africoat is seeking an Order of Interlocutory Injunction restraining LADOL from taking action against Africoat equipment, facilities or personnel pending the determination of the Arbitral Reference.

It was gathered that Africoat operated from LADOL Free Zone for several years before LADOL terminated its operating license.

In November 2018, it was announced that Africoat had been served an eviction notice from the LADOL Free Zone over outstanding debt.

LADOL also accused Africoat of breaching free-zone regulation – LFZ Regulations, including failure to start operations.

Africoat had alleged that LADOL was directly responsible for rejecting the import of pipes for an Africoat coating contract, forcing Africoat’s client to cancel the contract.

Africoat has continued to protest LADOL’s unreasonable “take it or leave it” gestapo tactics with regards to unwarranted charges levied without services provided.

FATAL SHOOTING AT LADOL FREE ZONE THREATENS NIGERIAN ECONOMY

Africoat argued that it was never made aware of such charges, neither did it agree to the charges, and was not offered the chance to discuss or negotiate the charges once imposed.

Africoat said it made several written attempts to resolve the outstanding issues but received no response from LADOL.

One of such charges being challenged by Africoat is the ground rent that LADOL allegedly levied over 6,000% mark-up over LADOL’s land lease rates paid to Nigerian Ports Authority (NPA).

Despite intervention by Minister of State for Industry, Trade and Investment, Africoat continued to experience a lack of cooperation from LADOL in providing services afforded Free Zone Enterprises.

The Eviction Notice has not been rescinded and the Service Agreement remains terminated.

LADOL was however forced to issue Africoat’s Operating License by the Minister but has failed to offer the services to support the licences.

Africoat has now served Notice of Arbitration to remedy the injustices perpetrated by LADOL on Africoat. This is the latest setback for LADOL Free Zone.

It was reported in the media that on April 8, an operative of the Nigerian Security and Civil Defence Corps (NSCDC) contracted by LADOL to guard the free zone shot and killed his colleague and an SHI-MCI Korean employee.

It was also reported that the Nigerian Police has concluded its investigations on the death of the Korean and the gunman will be charged for murder.

LADOL was accused of failing to take action against previous complaints by SHI-MCI of armed guards presenting a safety threat to employees at SHI-MCI FZE yard.

This incident has been taken up by the Korean Embassy in Nigeria and has been reported in the international media.

The management of the free zone is accused of developing a reputation for hostility towards international business, having been allowed to operate as a monopolistic single source service provider within a government jurisdiction with severe consequences to the investment climate in Nigeria.

International business will not invest in the Free Zone under such current business model.

Recent events in the free zone are setbacks to the Nigerian Government’s mandate to attract foreign investment.

It is time for the federal government agencies to take control of this environment that has become out-of-control. The solution to these crises in the free zone is for the authorities to create competition for the free zone management/operator and let a free and fair market dictate the commercial environment.

This is the healthy agenda put forward by the administration of President Muhammadu Buhari but is being violated by the management of this free zone.

Akpwan-Etukudon, an investment advisor, writes from Warri

International Chamber of Commerce Nigeria (ICCN), Monday, called for institutionalisation of arbitration mechanism to boost the nation’s drive for foreign investors.

The Chamber noted that foreign investors often insist on an efficient international arbitration as a dispute settlement mechanism is adopted in any investment dispute without recourse to the judicial process and its attendant delays.

To this end, the Chairman, Planning Committee of the 4th International of Commerce (ICC) Africa Regional Arbitration Conference, Mr. Mike Igbokwe, this at a news conference in Lagos, said adoption of arbitration mechanism will help Nigeria, currently seen as an attractive investment destination.

He said the global body, to which Nigeria became a member in 1979, and later re-organised in 1999, for the enhancement of trade and investment, seeks to encourage the use of arbitration in the resolution of disputes arising from trade and businesses.

According to him, while the cost of resolving disputes by way of arbitration may no longer be said to be cheap, the relative speed with which issues are resolved by arbitral tribunals makes it particularly attractive to the business community, which considers time to be money.

Igbokwe stressed that the conference scheduled for June 18-19, 2019, in Lagos by the ICC International Court of Arbitration in Paris, and the International Chamber of Commerce in Nigeria, is a demonstration of the growth of arbitration in Africa.

The theme for the conference, “Africa: Open for Business?” is expected to start with training on, “Drafting Enforceable Awards” on June 17, in Lagos.

He said the desire to determine whether Africa is ready for investments by both foreign and local investors, and to explore possible ways of making arbitration work in Africa, are the focal points of this year’s discussion.

“A cursory look at the topical issues that will be discussed at this conference leaves one in no doubt that the conference promises to be intellectually stimulating and productive in sharpening knowledge and skill in arbitration which is fast becoming a veritable alternative to litigation in resolving local and international commercial disputes.”

Also, ICCN Secretary, Mrs. Olubunmi Osuntuyi, said the conference is very strategic for the Nigerian arbitration community to the extent that it keeps creating a growing awareness of the importance of arbitration in the dispute resolution processes.

According to her, the conference is opene to seasoned arbitrators, academia, legal practitioners and users of arbitration, parties and persons interested in arbitration who had the opportunity to critically analyse a lot of the issues facing arbitration in Africa.

The Managing Solicitor, Trizon Law Chambers, Mrs. Foluke Akinmoladun, has advised young lawyers to get trained to become both domestic and international mediators.

According to Akinmoladun, there is the need for more international mediators that are either of African origin or are Africa based to mediate in disputes involving Africa issues.

She said most international mediators were foreigners who were not rooted in African culture but handle disputes originating from Africa.

Akinmoladun, who is also a trained arbitrator and mediator said this while delivering a paper at a seminar titled: “The Science and Art of Mediation, looking at the specifics.”

The seminar was co-organised by the International Chamber of Commerce and the Young Arbitrators Forum at the Lagos Court of Arbitration, Lekki.

Akinmoladun, who dealt specifically on the topic: “A brief introduction to mediation – commercial and international practice” said there is more development in the mediation space following the recent ‘Singapore Mediation Convention’ which will enable mediation agreements to be enforeceable as a court judgment once registered by the signatory states.

“The convention if adopted will promote the use of mediation as a dispute resolution mechanism for cross border transactions. Mediators will even earn internationally but spend locally,” Akinmoladun said.

She however advised mediators to be professional while carrying out their duties because “as a mediator you are not immune to professional negligence suit particularly if it is a private mediation practice”.

She urged young professionals to join Alternative Dispute Resolution (ADR) Institutions, attend trainings and be listed amongst these institutions panel of neutrals to enable them get recognised and earn more income as mediators.

Another speaker, Mrs Yemi Adeyinka, Chief Counsel, Eagle Crest, Legal Consult, while delivering her paper titled: “The science and art of banking mediation”, said mediation required patience by the mediators to understand the root of every dispute.

Adeyinka who noted that banking mediation is scientific, however, urged mediators to get trained in skills of resolving disputes emanating from loan recovery.

Mr Kenneth Onyema, a lawyer with Uptown Solicitors, advised young mediators to use social media space effectively to promote mediation.

Onyema while delivering a paper titled: “The Mechanics of Construction Mediation”, said mediation should be geared towards preventing disputes from escalating to project threatening levels.

Scores of eminent jurists converged on Ibadan, the Oyo State capital, for the inauguration of the Ibadan chapter of the Chartered Institute of Arbitrators.

It was memorable day as Prince Lateef Olasunkanmi Fagbemi (SAN) assumed office as the chapter’s pioneer chairman.

The event coincided with Fagbemi’s 22nd wedding anniversary. He is married to Fatima, an engineer.

Fagbemi urged the Chief Judges of Oyo, Osun, Ekiti and Ondo states and other heads of courts to follow the Lagos State Judiciary’s example in making Alternative Dispute Resolution (ADR) mandatory.

He said “I cannot end this address without saying a few words on the value of ADR mechanisms of which arbitration is just one.

“If effectively utilised , ADR can help to reduce of the backlog of the considerable number of cases, which we all know bog down the administration of justice in our climes.

“The Lagos State Judiciary has raised the bar with the new High Court of Lagos Civil Procedure Rules (2019), which in its Pre-Action Protocol , Practice Direction Number 2 , makes it mandatory to attempt resolution of the disputes by ADR means before a cause of action is instituted in court.

“I will like to pleas with Your Lordships, the Chief Judges of Oyo, Osun, Ekiti, Ogun and Ondo states and other heads of court to follow suit.

“This would encourage more people to acquire requisite training , one of the core services offered by the Institute of Arbitrators,” he said.

Fagbemi also urged his colleagues to embrace ADR as part of practice tools in the temple of justice “ where we ply our trade”.

Chair, Nigeria Branch of the Chartered Institute of Arbitrators, Mrs. Adedoyin Rhodes-Vivour, said the institute is eminently renowned worldwde.

According to her, arbitration has a lot of benefits both to the country and members of the institute.

“It gives investors the confidence to invest in the country, and imparts positively on economic development,” she added.

While appealing to lawyers not to destroy the process, Rhodes-Vivour outlined reasons for setting up the chapter.

She said a lot of work was done to get the Board of Trustees’ approval for the Ibadan chapter.

“It was not gotten on a platter of gold … Its not s money making venture but a service to humanity,” she said.

The first Vice Chairman, Nigeria Branch of the Chartered Institute of Arbitrators, Mr. Olatunde Busari (SAN) in his presentation entitled: Arbitration: What the Chartered Institute of Arbitrators can do for you, detailed the history of the institute and explained what members can benefit from it.

He stated that the aim of the institute which was founded in the United Kingdom in 1915 was to raise the status of arbitration to the dignity of a distinct and recognised position as one of the learned professions.

While listing the services provided by the Nigeria branch, the SAN said in addition to its activities as a professional body and training and certification of ADR practitioners, the branch is available to appoint suitably qualified persons to act as arbitrators as and when required.

The Managing Partner, Afe Babalola & Co, Mr Adebayo Adenipekun (SAN), who is a member of the Ibadan Chapter, and one of the Nigeria’s representatives at the International Court of Arbitration (ICA), noted that apart from helping in the dispensation of justice, arbitration has helped many countries to attract huge foreign investments.

He said “Every country wants foreign investments. And that is the truth – every country desires to attract foreign investors into the country.

“But one of the challenges which often discourage foreign investors from investing in a country is the issue of dispute resolution.

“Foreign investors are often reluctant to invest in developing countries or what are often referred to as third world countries because the legal systems in those countries are usually slow.

“In a recent survey carried out, it was discovered that whereas in some developed countries, it will take only about 18 months to dispose of a matter in court, in developing countries or third world countries like Nigeria, cases can be in court for up to seven, eight, nine or even 15 years.

“So, that became sort of a problem why foreign investors will not want to invest in developing countries. The solution to that is arbitration.”

Thirteen members were inducted and sworn in by Mrs. Adedoyin Rhodes-Vivour , with Prince Fagbemi as the Chapter’s Chairman.

The Ibadan chapter follows Abuja and Port-Harcourt chapters of the United Kingdom-based institute.

Guests at the event included professionals from accounting, oil and gas, banking, insurance, engineering, shipping, among others.

Among the dignitaries were first female Senior Advocate in Nigeria, Chief Folake Solanke, Chief Akinwande Delano (SAN), Chief Niyi Akintola (SAN), Mr. Hakeem Afolabi (SAN), Engr. Bolaji Tubi and Oyo State Chief Judge, Justice Munta Abimbola, represented by Justice Aderemi.

Others are Justice Esan, Justice O.I.Aiki, Justice A.A. Olatunji, former Oyo state Deputy Governor Chief Iyiola Oladokun, Mrs. Funmi Roberts, Lateef Olagoke Yusuff, Omoniyi Odeyemi, Mrs. Delayo Oriekun and Tolu Olatunji, among others.