A Justice of the Supreme Court, Helen Moronkeji Ogunwumiju, and a Justice of the Court of Appeal, Abimbola Obaseki-Adejumo, have called for the wider adoption of Alternative Dispute Resolution (ADR) mechanisms to enhance access to justice, reduce court congestion and improve Nigeria’s business environment.

This was disclosed at the weekend during the induction ceremony of fellows, members and associates of the Institute of Alternative Dispute Resolution Development and Conflict Management of Nigeria (iADRNIGERIA) held in Lagos.

Specifically, Ogunwumiju stated that delays, procedural complexities and the high cost of litigation have made ADR an essential complement to the court system because of its flexibility, speed and outcome-oriented nature.

Referring to the Supreme Court’s decision in A.G. Rivers State v. A.G. Bayelsa State, she said the apex court emphasised the need for dispute resolution mechanisms that preserve relationships, particularly in matters involving public interest.

She further cited Mekwunye v. Emirates Airlines, where the court reaffirmed the binding nature of consensual dispute resolution processes and held parties accountable to mechanisms they had voluntarily adopted.

“These decisions reflect a broader judicial philosophy that justice is not diminished by settlement; rather, it is often enhanced by it,” she said.
In her keynote address tagged:
“Alternative Dispute Resolution (ADR): Bridging Justice and Business Efficiency in Nigeria,” Obaseki-Adejumo said ADR had become indispensable in a rapidly expanding economy where commercial disputes, if left unresolved for years, could undermine investments, business growth and public confidence in the justice system.

She described ADR as more than a collection of dispute-settlement techniques, saying it represents a philosophy that prioritises efficiency, collaboration and practical outcomes over prolonged confrontation.

According to her, while disputes are inevitable in any growing economy, the methods adopted in resolving them determine whether they become obstacles to progress or opportunities for growth.

“For a business, disputes can result in lost revenue, damaged relationships and stalled investments. For society, they may mean delayed justice, and for the legal system, an ever-growing backlog of cases,” she said.

The jurist highlighted the advantages of ADR for businesses, including faster resolution timelines, lower legal costs, confidentiality and flexibility in tailoring procedures to the needs of disputing parties.

She also noted that ADR has expanded the role of legal practitioners beyond courtroom advocacy to include problem-solving, negotiation and facilitating mutually beneficial outcomes.

Obaseki-Adejumo disclosed that the Court of Appeal handles about 20,000 cases annually, while the Supreme Court receives more than 1,500 appeals each year but is able to hear only a fraction of them.

She said the Court of Appeal’s ADR programme, established under its 2014 Practice Directions, has helped reduce the burden on the appellate system by encouraging settlements in suitable cases.

Under the arrangement, appeals are screened by the court’s ADR unit, while criminal, constitutional and public law matters are excluded. Parties willing to explore settlement must provide written consent before mediation begins.

The mediation process, she explained, is conducted by trained justices, retired judges and accredited mediators at ADR centres in Abuja, Lagos and Port Harcourt, with a Kano centre nearing completion.

Where settlements are reached, the parties file terms of settlement which are adopted by the court as consent judgments, leading to the striking out of the appeal. Matters that fail to settle are returned to the regular court process.

She revealed that by 2023, approximately 500 appeals had been resolved through the Court of Appeal ADR programme within an average period of months, compared to the three to seven years often required for a full appellate process.

The justice also highlighted the role of ADR within the National Industrial Court of Nigeria, where labour disputes are mandatorily referred to ADR processes at the initial stages of proceedings under the court’s ADR Centre and Rules.

According to her, employment disputes, wrongful termination claims, unpaid entitlements and trade disagreements are particularly suited to mediation because they are relationship-based and often require solutions beyond monetary compensation.

She noted that mediators at the National Industrial Court possess specialised knowledge of labour law and industrial relations, enabling them to better understand the concerns of employers, employees and labour unions.

The court, she said, has recorded a settlement success rate of about 70 per cent and significantly reduced case backlogs through its ADR framework.

Despite these gains, Obaseki-Adejumo observed that ADR remains underutilised in Nigeria due to limited public awareness, a cultural preference for litigation, and concerns about enforceability and neutrality.

She called for stronger regulation of emerging ADR institutions, improved professional certification standards, and clearer procedures for recognising and enforcing ADR outcomes through the courts.

The jurist also advocated a shift in public perception, urging Nigerians to stop viewing litigation as the default response to disputes.

“Disputes do not have to destroy relationships. Through mediation and negotiation, they can strengthen them,” she said, noting that ADR allows parties to develop creative solutions such as revised contracts, future partnerships and structured settlements that may not be available through conventional litigation.

Addressing legal practitioners, she urged them to embrace mediation and arbitration as core professional competencies and advise clients on achieving practical outcomes rather than pursuing lengthy legal battles.

She also encouraged business leaders to incorporate ADR clauses into commercial contracts and pursue dispute resolution strategies that prioritise continuity and long-term business interests.

Looking ahead, Obaseki-Adejumo identified Online Dispute Resolution (ODR) as an emerging area with significant potential, particularly for Nigeria’s growing technology and e-commerce sectors.

She warned that Nigeria risks losing arbitration business to foreign jurisdictions if confidence in domestic dispute-resolution mechanisms is not strengthened.

Calling for collective action, the Court of Appeal justice urged stakeholders to expand awareness campaigns, integrate ADR into legal education and business practice, and strengthen institutions that support efficient and fair dispute resolution.

“ADR is not about avoiding justice; it is about achieving it more effectively,” she said.

She added that the future of dispute resolution in Nigeria lies not in choosing between the courts and ADR, but in integrating both systems to deliver faster, more accessible and business-friendly justice.

In his address, President and Chairman of the Governing Council of iADRNIGERIA, Prof Akinola Ibidapo-Obe congratulated all the inductees, stating that the ocassion marks another significant milestone in the journey of the Institute as they are formally admitted into the Institute.

Stating that conflict is an inevitable feature of human interaction, Prof Ibidapo-Obe advised the new inductees to maintain highest ethical.