The Arbitration and
Mediation Act 2023 (The Act) was enacted to introduce an arbitration regime in
Nigeria consistent with global best practices with a view to enhancing trade
and commercial engagements within and across borders. An interesting innovation
in the Act is the permission of Third-Party Funding (TPF) of arbitrations as
well as the abolishing of the common law torts of champerty and maintenance.
This paper examines the scope of TPF with the aim of establishing its
implications for commercial practice and integration in Nigeria. With a
doctrinal approach, it finds that the Act fails to address issues of control,
conflict of interest, confidentiality, and disclosures all of which are
identified in the paper to be possible challenges associated with TPF
agreements. The paper therefore concludes that while the old Arbitration and
Conciliation Act may have been improved on, more efforts are required to
balance the interest of parties engaged in arbitration over a commercial
dispute in the area of TPF. It recommends for a more detailed legislation that
will specifically address the peculiar features of TPF in Nigeria for a wider
commercial prospect.