An Examination of the Effectiveness of Banking Arbitration in Nigeria

Abstract

Banking is crucial sector in any economy and Nigeria is no exception. In Nigeria, the banking industry is regulated by the Central Bank of Nigeria (CBN), and disputes between banks and their customers are often settled through arbitration. This paper examines banking arbitration effectiveness in Nigeria. The paper provides an overview of the Nigerian banking industry and arbitration's role in resolving disputes. It then examines the effectiveness of banking arbitration in Nigeria by analyzing the procedures and processes involved in the arbitration process. It also analyzes the level of compliance by banks with arbitration decisions, and the perception of the public towards banking arbitration. The findings of the paper suggest that while banking arbitration in Nigeria has resolved disputes between banks and their customers, there are still some challenges to be addressed. Which includes the slow pace of arbitration proceedings, inadequate training and accreditation of arbitrators, and lack of transparency in the arbitration process. Overall, the paper concludes that banking arbitration in Nigeria is an effective means of resolving disputes between banks and their customers. However, there is room for improvement. Stakeholders in the banking industry need to work together to address the challenges and ensure the arbitration process is fair, transparent, and efficient.

Keywords: Banking, Arbitration, Effectiveness, Nigeria, Examination, Dispute Resolution.

DOI: 10.7176/JLPG/133-01

Publication date:June 30^th 2023