Understanding the Place of Islamic Arbitration within the Nigerian Law

Kudirat Magaji W. Owolabi

doi:10.26555/novelty.v14i1.a25926

Understanding the Place of Islamic Arbitration within the Nigerian Law

Kudirat Magaji W. Owolabi

Abstract

Introduction to The Problem: For many years, Nigerian Muslims had long desired a wider use of Shari’ah outside its traditional usage in worship and family relations. This agitation has led to a rise in the use of Shari’ah in commercial transactions and banking and financial products lately. As the use of Shari’ah in this realm of commercial relationships increases, conflict is inevitable and this requires appropriate dispute resolution mechanisms to settle it. Not only that, Muslims in Nigerian wish to observe and be governed by Shari'ah in all aspects of their lives including their commercial dealings, they also desire a resolution of their disputes in accordance with their faiths and beliefs. Thus, the contemporary laws in Nigeria need to be merged with Islamic law principles in order to meet the demands of its citizens.

Purpose/Objective Study: This paper aimed to examine the legal status of Islamic arbitration and its awards within the Nigerian legal framework particularly in area of commercial disputes.

Design/Methodology/Approach: This paper employed doctrinal methodology of legal research. It therefore adopts descriptive and analytical methods. It involves primary sourcing materials from Quran, Sunnah, Acts and Cases. Secondary sources include journal articles, textbooks, official documents online and internet materials.

Findings: This paper revealed that the notion of a tahkim (arbitration) subsists and recognise in the Shari’ah law and in Nigerian legal system. However, provisions of Arbitration and Conciliation Act (ACA) 1988 do not consider the idiosyncrasies of Islamic injunctions, despite growing investors’ interests in Islamic commercial transactions. ACA do not provide a Shari'ah compliant arbitration alternative for both Muslim and non-Muslim parties who are willing to arbitrate under the Islamic law. It is consequently suggested that peculiar nature of the Islamic arbitration and awards should be considered in the ACA and the relevant Sections should be amended accordingly.

Paper Type: Research Article

Keywords

Islamic Arbitration; Tahkim; Nigerian Law; Conciliation

Full Text:

PDF

References

Abdelgafar I. Basma. (2018). Public Policy Beyond Traditional Jurisprudence: A Maqasi Approach. USA: Int’l Institute of Islamic Thought.

Abdullahi N.A. (2016). Islamic Banking in 1Nigeria: Issues and Prospect. J. of Emerging Economies and Islamic Research, 4(2), 1-12.

Ahmad Idi D. & Oseni U.A. (2014). Appointing a Non-Muslim as Arbitrator in Tahkim Proceedings: Polemics, Perceptions and Possibilities. MLJ, 5, xvi, 1-10.

Ahmad Azlin Alisa, Safiai Mohd Hafiz & Yusop Nurun Naziah Md. (2021). The Role of IILM in the Liquidity Risk Management of Islamic Banking Institutions. Intl J of Academic Research in Accounting, Finance & Management Sciences, 11(3), 762-771.

Ahmad A., Rehman K. & Humayoun A.A. (2011). Islamic Banking and Prohibition of Riba. Afri. J. of Bus. Manag., 5(5), 1763-1767.

Akanbi MM, Lukman AA & Daibu AA. (2015). Customary Arbitration in Nigeria: A Review of extant Judicial Parameters and the need for Paradigm Shift. J. of Sustainable Dev., Law & Policy, 6(1), 199-221.

Akram Laldin M. Islam Law: An Introduction (IIUM Press, Malaysia, 2021).

Aliyu S.U.R. (2013). Islamic Banking and Finance in Nigeria: Issues, Challenges and Opportunities. In Kabir Isa Dandago, Aliyu Dahiru Muhammad & Umar A. Oseni (Ed.) Essentials of Islamic banking and Finance in Nigeria. Kano: Benchmark Publishers Limited.

Aliyu-Ado A. & Saiti Buerhan. (2017). Takaful Practice in Nigeria: History, Present and Future. European J. of Islamic Finance, 8, 1-10.

Alqudah M.A. (2017). The Impact of Sharia on the Acceptance of International Commercial Arbitration in the Countries of the Gulf Cooperation Council. JLERI, 20(1) 1-17.

Anderson J.N. D. (1962). The Future of Islamic Law in British Commonwealth Territories in Africa. Law and Contemporary Problems, 27(4), 617-631.

AOSSG. (2015). Financial Reporting Issues Relating to Islamic Finance- a Study of Financial Statements of Islamic Financial Institutions. accessed on 18 January 2019.

Arowosegbe Jacop. (2021). Revisiting the Legitimacy Question of the Nigerian 1999 Constitution. Global Constitutionalism, 11(1), 27-54.

Awofeso Olu. (2016). Political Islam And Democracy in Nigeria: Compatibility or Incompatibility? Global Journal of Arts, Humanities and Social Sciences, 4(3),1-11.

Bhatti Maria (2020). Islamic Law and International Commercial Arbitration (1st Ed.) New York: Routledge.

Coetsee D., & Buyers, P. (2018). A Doctrinal Research Perspective of Master’s Degree. South African Journal of Higher Education, 32(1), 71-89.

Dandago Kabir Isa, Muhammad Aliyu Dahiru & Oseni Umar A. (2013) Essentials of Islamic Banking and Finance in Nigeria. (1st ed.) Malaysia: Benchmark Publishers Ltd.

Daryanto, D. (2021). Concept of Tahkim in Indonesia for Islamic Business Dispute Settlement. Journal of Islamic Studies, 2(3)(1), 1-18.

Adua Suleiman Sheu. (2019) Historical Background of Islamic Banking in Nigeria. Intl J. of Humanities &Social Sciences, 8(1), 67-74.

Ewaolisa E.F. & Kasie E.G. (2013). Islamic Banking in Nigeria: A Critical Appraisal of its Effect on the Nigerian Economy. Rev. Public Admin. & Management, 2(3) 37-48.

Gamawa Yusuf Ibrahim. (2018). Our Destiny is in Our Hands: A History of Governance in Nigeria since Independence. Nigeria: CreateSpace Independent Publishing.

Gawas V.M. (2017). Doctrinal legal Research method a guiding principle in reforming the law and legal system towards the research development. International Journal of Law, 3(5), 128-130.

Hamid H.A.A, Hassim M.H, Ab Wahab N, Aziz T.N.R.A, Ramli R &Ahmad S.A. (2019). Alternative Dispute Resolution (ADR) via Sulh Processes. Int’l J of Law, Governance and Communication, 4 (17), 25-33.

Idornigie P. (2015). Commercial Arbitration Law and Practice in Nigeria. (2nd ed.). Nigeria: Lawlord Press.

Imran Ahsan Nyazee. (2016). The Concept of Riba and Islamic Banking. (1st ed.). Nigeria: CreateSpace Independent Publishing Platform.

ISDB Portal accessed on 18 January 2019.

Ismail Ezamshah. (2015). Takaful: The Great Potential in Nigeria. Takaful Market Profile, 58-9. accessed 30 October, 2018.

Lawal Yusuf Malumfashi. (2016). The Spread and Development of Islamic Civilisation in Northern Nigeria: A Case Study of Katsina State. Int’l Journal of Business, Economics and Law, 9(5), 173-189.

Lamim Sanneh. (2016). Beyond Jihad: The Pacifist Tradition in West Africa Islam (1st ed). Oxford: Oxford University Press.

Latif Mustofa. (2018). The substance of the Formal Prohibition of the Riba: Islamic Finance and the Tie with the Real Economy. Int’l Journal of Islamic Studies & Humanities, 1(1), 56-69.

Malik Shahzad Shabbir. (2017). Monitoring and Controlling of Islamic Banking System in Nigeria: Way Forward and Constraints. Int’l J of Contemporary Research & Review, 8(6) 120. accessed on 18 January 2019.

Mamman Lawan. (2014). Islamic Law and Legal Hybridity in Nigeria. Journal of African Law, 58(2), 302-327

Mustapha A. Daud & Idris Mansur. (2015). The Contributions of Islamic Economic and Institutions to Modern Nigeria. Journal of Islam in Nigeria, 1(1), 36-58.

Mustapha D & Ibrahim M.Y. (2013). The Emergence and Challenges of Islamic Banking in Nigeria: A Stakeholder Perception. In Kabir Isa Dandago, Aliyu Dahiru Muhammad & Umar A. Oseni (Ed.) Essentials of Islamic banking and Finance in Nigeria (pp.44-54). Kano: Benchmark Publishers Limited.

Oseni Umar A. (2014). Shariah Court-Annexed Dispute Resolution of the Three Commonwealth Countries-Literature Review. Intl J. of Conflict Management,1-30.

Oseni Umar A. (2015). Dispute Resolution in the Islamic Finance Industry in Nigeria. European Journal Law Economic, 40, 545-564.

Najjar Nathalie. (2017). Arbitration and International Trade in Arab countries (2nd ed.) USA: BRILL

Oba AA. (2011). Religious and Customary Laws in Nigeria. Emory International Law Review, 25(2), 881-895.

Oba A.A & Ismael S.I. (2020). Revisiting the Causes of Delay in the Adjudication of Islamic Personal Law Cases in Nigerian Jurisprudence. Nnabdi Azikwe University Journal of Int’l law & Jurisprudence, 11(1), 1- 14.

Ogunbado A.F, Ahmad U., & Abubakar. (2017). Islamic Banking and Finance in Nigeria: Exploration of its Opportunities and Challenges. Int’l J. of Innov. Knowledge Concepts, 5(8), 102- 146.

OIC Charter Agreement 1972. accessed on 15 January 2019;

Olayemi Abdul Azeez Maruf &Khalid al-Zabyani Bandar. (2014). Arbitration Clause in Islamic Law Banking Contracts: A Contractual Necessity. Int’l Journal of Interdisciplinary and Multidisciplinary Studies, 1(7), 1-6.

Olatoye K & Yekini A. (2019). Islamic Law in Southern Nigerian Courts: Constitutional and Conflict of Laws Perspectives. Benin Journal of Public Law, 6, 120-145.

Omar Saleh Abdullah Bawazir & Mohammad Azam Hussain. (2018). The Qualifications of Arbitral Tribunal: Perspectives of Shariah Law and UNCITRAL Model Law. The Journal of Social Sciences Research, 6, 1213-1217.

Owolabi W Magaji, Kudirat & Oniye Shuaib. (2021). Impacts of International Human Rights Law on the Religious and Other Minorities’ Rights in Nigeria. Federal University Oye-Ekiti Law Journal, 3, 56-74.

Panighetti T. (2013). I-Arbitration: Not the Newest Apple(R) Product, But Sharia Law in International Commercial Arbitration. Y.B. Arb & Med, 5, 287-294.

Peshkov V. (2018). Extra Judicial Methods of Resolving Economic Disputes as Instrument of Economic Development. The European proceedings of social& behavioural sciences, 5(5), 942-947;

Premium Times. (October 7, 2017). Nigerian Government Releases N100

billion Sukuk Bond Proceeds for 25 Road Projects. accessed on 15 January, 2019.

Sanusi L.S. Islamic Finance in Nigeria: Issues and Challenges (Lecture delivered at Markfield Institute of Higher Education, Leicester, UK, on 17th June, 2011).

Setyowati Rofiah, Islamiyati & Putra Aista Wisnu. (2020). Compliance on Laws about Alternative Disputes Resolution Institutions for Shariah Financial Institutions: Coverage and Elementa. Advances in Economics & Management Research, 140, 469.

Sherif Elhalaby, Adel Sarea & Awwad Alnesafi & Mujeeb Saif Mohsen Al-Absy. (2023). The Adoption of AAOIFI Standards by Islamic Banks: Understanding the Microeconomic Consequences. Journal of Economies, 11(2), 39

Umar Habibu Umar & Junaidu Mohammed Kurawa. (2021). Exploring the Reasons for the Low Level of Awareness and Knowledge of AAOIFI Accounting Standards in Nigeria. Journal of Islamic Finance, 10(1), 1-14. accessed on 18 January 2019.

Umar U.H. (2015). A Basic Comprehensive Accounting Package for Musharakah: Consolidation of Islamic and Conventional Practices. In E. Ghazali, D Mutum, M. Rashid & J. Ahmed (Ed) Management of Shariah Compliant Businesses (pp. 85-93). Cham: Springer.

Walid B.H. (2013). A Fabulous Discovery: The Arbitration Offer under the Organisation of Islamic Corporation Agreement Related to Investment. Journal Intl Arb., 30 (6), 6371-663.

DOI: http://dx.doi.org/10.26555/novelty.v14i1.a25926