The Lagos Multi-Door Courthouse in collaboration with the Pro-Poor Growth and Promotion of Employment (SEDIN) programme of the German Development Agency (GIZ) has urged operators of micro, small and medium enterprises (MSMEs) in the country to adopt Alternative Dispute Resolution (ADR) mechanism in resolving their commercial disputes.
Justice Jumoke Pedro, chairman of the Lagos Multi-door Courthouse Governing Council in a sensitization programme organized for MSMEs recently said adopting the ADR mechanism in dispute resolution by businesses will help them save costs.
“No matter how much you try there is bound to be conflicts in any business, so how do businesses resolve this dispute amicably in a cost-effective manner,” said Pedro.
“We want MSME operators to know how to immediately manage disputes and that their first call to resolve the dispute cost-effectively is the ADR,” she further said.
“MSMEs will not encounter the kind of technicalities they will meet in court, most of the processes in ADR are party-driven – that is both parties have to agree through mediation, arbitration, or negotiation,” she added.
She noted that the Lagos Multi-door Courthouse is the foremost alternative dispute resolution centre in Africa, adding that some states in the country are already borrowing its example and model in resolving disputes.
Read also: Dingtone mobile service solutions to save cost for Nigerian SMEs
She called on the operators of MSMEs to always introduce a mediation clause when preparing a business contract agreement, noting that by doing so, they are taking their destiny into their own hands.
Speaking on the importance of the ADR mechanism, Adeyinka Aroyewun, director of the Lagos Multi-Door Courthouse (LMCD) said ADR is relevant for MSMEs in resolving disputes because disputes are inevitable and failure to resolve them quickly could cause lots of problems for the business.
“Instead of them wasting executive time in court in trying to resolve the dispute, the best thing to do is to resolve through mediation, arbitration, or negotiate between themselves by adopting the ADR,” she said.
“When disputes are resolved on time, it saves economic time for MSMEs and costs,” she added.
Similarly, Akinropo Omoware, head, policy, and strategy unit, GIZ-SEDIN said the Pro-poor Growth Promotion Employment in Nigeria – SEDIN is working and partnering with the private and public sector to support MSMEs by improving their employment and income situation.
Omoware who was represented by Chinazo Okoye, state coordinator and policy advisor, GIZ-SEDIN said that SEDIN also works to improve the business environment, noting that GIZ has partnered with LMDC to support MSMEs in dispute resolution.
According to her, the ADR means are cheaper and faster for businesses to resolve commercial disputes.
She noted that as part of activities to mark the 20 years of the Lagos Multi-Door Courthouse, the sensitization programme was organized to improve the understanding of operators of small businesses in the processes of dispute resolution.
