Abuja: The Abuja Chamber of Commerce and Industry (ACCI) has urged Small and Medium-sized Enterprises (SMEs) to adopt the Mediation Rules 2019 for faster, cheaper debt recovery and commercial dispute resolution.
According to News Agency of Nigeria, Mrs. Hauwa Usman, Registrar-General of the Nigerian Chambers of Commerce Dispute Resolution Centre (NCC-DRC/ACCI), emphasized in an interview that the Mediation Rules 2019 were designed for a swift and cost-effective alternative dispute resolution. These rules offer SMEs a structured framework to resolve disputes outside of court.
Usman highlighted that the mediation rules provide an affordable route for small business disputes, offering a fast, confidential, and legally enforceable method. She described the rules as an underutilized resource for SMEs looking to recover debts, resolve supply chain disagreements, and enforce commercial obligations without resorting to costly litigation.
‘The rules allow the resolution of commercial disputes that many Nigerian businesses currently abandon rather than pursue in court,’ Usman stated. She noted that numerous commercial disputes in Nigeria involving modest sums go unresolved because parties view court proceedings as too costly and lengthy.
Usman explained that initiating mediation at the NCC-DRC involves sending a simple written request via email, detailing the nature of the dispute and the relief sought. This process involves no complex filings, mandatory legal representation, or prohibitive upfront costs.
Under Rule 2.3 of the Mediation Rules, a party initiates proceedings by notifying the other side with a brief description of the dispute, including the estimated claim value and contact details. The other party has 21 days to respond, and if there is no response, the initiating party may consider other remedies.
Confidentiality is emphasized under Rules 7 and 8 of the Mediation Rules 2019, with information disclosed during mediation being inadmissible in future court or arbitration proceedings. This encourages honesty and creativity, increasing the likelihood of achieving mutually acceptable settlements.
Usman elaborated that each party bears its legal representation costs, while mediation expenses are shared equally unless otherwise agreed, as per Rule 14.2. Excess deposits towards mediation costs are refunded after proceedings conclude.
Mediation agreements are written, signed by the parties and mediator, and become legally binding under Rule 13. These settlements differ from informal negotiations as they have the force of a binding contract enforceable through the courts if breached.
The rules also allow mediation alongside arbitration, enabling the suspension of arbitral proceedings for an amicable settlement. Successful mediation terminates arbitration, while unsuccessful attempts allow arbitration to resume without prejudice.
Usman encouraged SMEs, market associations, logistics firms, and service providers to include NCC-DRC mediation clauses in contracts and to approach the center promptly in case of disputes. The NCC-DRC, as ACCI’s dispute resolution arm, remains committed to providing accessible and efficient services across Nigeria.