While the litigation funding industry continues its rapid growth in many territories around the globe, we are starting to see similar patterns emerging in Africa. With the passage of Nigeria’s Arbitration and Mediation Bill, the country has opened the doors for wider adoption of third-party funding with these latest changes to the regulatory framework.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
While the litigation funding industry continues its rapid growth in many territories around the globe, we are starting to see similar patterns emerging in Africa. With the passage of Nigeria’s Arbitration and Mediation Bill, the country has opened the doors for wider adoption of third-party funding with these latest changes to the regulatory framework.
Analysis by White & Case examines the ways in which this new legislation will not only make it easier for parties to engage in funding agreements, but also offer sensible oversight and scrutiny for this process. The new law allows for third-party funding in arbitration cases in the Nigerian court system, which White & Case notes is only the third case of a bill with such direct language, after similar legislation in Hong Kong and Singapore.
As mentioned, the new law ensures that any funding agreements must be disclosed and covers situations where costs orders may be brought by respondents, providing much-needed guarantees in cases where the claimant would not have the capital to cover such costs.
