The co-existence of people in groups and communities are for many reasons, which include commercial dealings, ethnic affiliation, friendship and historical factors. In such relationships, there are disagreements or conflicts, which if not properly handled, may lead to anarchy. Different principles have therefore been laid down to settle disputes in such relationship to ensure peace and order. With the advent of the British which led to colonization, the Yoruba customary way of dispute settlement paved way for a more British approach which no doubt is different. The patterns of dispute settlement under the then Nigerian customary law and under the British system are predominantly and substantially different. There are three (3) major ethnic groups in Nigeria. These are the Yorubas, Igbos and Hausas. This paper considers dispute settlement under the Yoruba customary law and the procedure under the formal Criminal Justice System and examines the advantages and disadvantages of both systems.