BY EDIM EFFIONG EDIM ABSTRACT Alternative Dispute Resolution (ADR) has come to stay in the Nigerian polity and has now been widely accepted as a quicker and more effective route to the settlement of commercial disputes. ADR has rightly been described in various quarters, as a surrogate to litigation in the Nigerian Judicial System. This description is not strange because the advantages of ADR which include amongst other things - time saving, cost effectiveness and preservation of the pre-dispute relationships, clearly outweighs those associated with litigation. The extant National Tax Policy has encouraged the use of arbitration in the resolution of