Press Releases

Fashola Signs Lagos Court Of Arbitration Law, Others

May 18, 2009 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Monday signed into law a bill establishing the State’s Court of Arbitration, making the State the first state to establish such a court in Nigeria.

Governor Fashola, who said the law would make Lagos the first Arbitration Centre for West Africa and probably for the whole of the African Continent, also signed the State’s Arbitration Law and Amendment to the State’s Road Traffic Law 2003.

In his short remark before assenting to the bills, Governor Fashola, who described the laws as building blocks for the discharge of responsibilities of governance, said the Lagos State Arbitration Law and the Lagos State Court of Arbitration Law are laws which, in no small measure, will have impact on Lagos and Nigerian economy.

“We have come to terms with the fact that if we must truly belong where we want to belong, that is among the most prosperous economies in the world, we must do things as similar in terms of evolving standards for operation of businesses and enterprises, laws that must be made to protect citizens and corporations alike”, the Governor said.

He lamented, “There is no other area more than probably arbitration where Nigeria has created so many opportunities and yet lost out the benefits of those opportunities. Commercial disputes, contracts that are entered into and implemented in Nigeria, that contain arbitration clauses, are dealt with, when disputes arise, outside Nigeria”.

According to the Governor, “Arbitration disputes are usually resolved either in Paris or London. This has had positive effects on the economies of these cities and negative effect on the Nigerian economy. We spend hundreds of thousands of Naira, or probably millions, paying lawyers, travelling abroad, taking up accommodation, providing transportation facilities and paying for flight”, the Governor said.

He added, “We think that if the commercial city of Nigeria, Lagos, can evolve the best arbitration practices as we intend to do in establishing this law, we can as a start become the first arbitration court in West Africa and hopefully the arbitration court for the whole of the African Continent”.

Governor Fashola stated that the establishment of such a court in Lagos would provide real diversification of the nation’s economic opportunities which will enhance not only the economy especially Tourism that will come as consequence of this but also the security and comfort that investors will have in knowing that if they invest in the economy, commercial disputes can be resolved in less acrimonious, less adversarial, and reliable business environment that allows projects to go on”.

Describing Transportation as the bedrock of modern civilization, Governor Fashola noted that the Amendment to the State’s Road Traffic Law, 2003, would further aid the functions of the Ministry of Transportation and ensure safety of life as well as make sure of the efficient use of the roads in the State.

Earlier, while introducing the bills, the Special Adviser, Political and Legislative Power Bureau, Hon. Abdul Hakeem Abdul Lateef said the Bill for Amendment of the Lagos State Road Traffic Law 2003, which according to him has four sections, was meant to amend the definition of Commissioner to now mean Commissioner for Transportation or any person assigned to the position of the office of Commissioner of Lagos State.

According to him it is meant to assist the Commissioner to carry out his duties as Commissioner for Transportation in such a manner that will enhance the efficiency of the Ministry of Transportation. “It enhances the powers of the Commissioner to discharge his functions in a very smooth manner to the benefit of the people of Lagos State”, he said.