It was learnt that the ex-militant was arrested at about 1.00pm by the Benin Republic's police.
A statement by his lawyer, Festus Keyamo confirmed the arrest, saying Asari-Dokubo was picked up around the Lubeleyi roundabout and taken to "an unknown destination."
Keyamo, in the statement on Tuesday, argued that Asari-Dokubo was not arrested for running any illegitimate business in the country.
The lawyer noted that the ex-militant had been residing partly in Benin Republic for many years, adding that Asari-Dokubo owns property in Cotonou.
It was gathered that the ex-militant reportedly opened a private university – King Amachree African University, in Benin Republic.
The university is preparing to start degree-awarding programmes in 2014.
The statement reads in part, "Today, Tuesday, November 26, 2013, my friend and client, Alhaji Mujahid Dokubo-Asari, was arrested in Cotonou, Benin Republic, around the hours of 1pm and 2pm by the country's gendarmes (police).
"He was picked up around the Lubeleyi roundabout and taken to an unknown destination. In fact, he owns houses, schools and an academy in that country. All these places have been searched as of this evening and nothing incriminating was found."
Keyamo expressed the conviction that "Dokubo's arrest and detention are a ploy by certain forces in Nigeria in an unholy alliance with the Beninoise government to keep him away as 2015 approaches.
"We call on the Nigerian government to immediately intervene and ensure that no harm befalls Alhaji Dokubo-Asari and to use all diplomatic means to secure his immediate release and safe return to Nigeria."
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