GIZ, EU advocate small claims courts to resolve MSME disputes in Nigeria
The German Agency for International Cooperation (GIZ), in collaboration with the European Union (EU), is promoting the use of small claims courts (SCCs) to enhance commercial dispute resolution for micro, small, and medium enterprises (MSMEs) in Nigeria.
In addition, the initiative supports the adoption of multi-door courthouse systems (MDCS) to offer accessible, affordable, and faster alternatives to traditional litigation, ultimately improving the business environment for MSMEs.
Head of Programme for Sustainable and Inclusive Economic Development and Decent Employment in Nigeria (SEDIN), Markus Wauschkuhn, made the call on Thursday at a peer learning workshop in Abuja.
Mr Wauschkuhn said the alternative dispute resolution mechanisms offered quicker, more accessible and more affordable options for resolving business conflicts, which were critical for improving the business environment and reducing legal bottlenecks for MSMEs.
He said, “MSMEs are the backbone of Nigeria’s economy, yet they often face challenges in accessing legal and financial support. Small claims courts and multi-door courthouses provide a timely, cost-effective solution for resolving issues like debt recovery. The SEDIN programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and supported by the EU-VACEITARED initiative, is being implemented by GIZ in 10 Nigerian states. It aims to enhance cross-state collaboration, monitoring and evaluation, and strategic communication to support economic development,’’
Mr Wauschkuhn also stressed the importance of peer learning to close operational gaps among dispute resolution stakeholders, enhance capacity, and standardise effective practices across states.
Head of Component, GIZ-SEDIN, Akiropo Omoware, urged business owners to understand and properly document contracts to reduce the likelihood of disputes.
“Disputes are inevitable, but many arise because people fail to read or understand contract terms before signing,” he said.
Also speaking, President of the Mediation Training Institute of Nigeria, Segun Ogunyannwo, called for greater awareness and use of mediation through small claims courts and multi-door courthouses.
Participants at the workshop included legal professionals, magistrates, and representatives of the Nigerian Bar Association (NBA) from Lagos, Ogun, Edo, Ondo, Niger, Plateau, Cross River, Kano, Kaduna and Oyo states including the Federal Capital Territory.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
States
648,000 Gombe indigenes benefited from NG-CARES since 2022: Official
“Communities apply for interventions, while beneficiaries are identified through the state’s social register,” Mr Imam said.
States
Rivers: Police arrest 33 suspected kidnappers, armed robbers, recover arms cache
The CP said the exhibits recovered from the suspects include 66 locally made guns, 34 pump-action guns, 21 AK-47 rifles, 10 English-made pistols, and two GMP guns.
Heading 1
Tinubu’s govt promises speedy, quality passports issuance after 100% fee hike
Mr Tunji-Ojo said the planned shortened time frame was part of the federal government’s reforms in the passport issuance process.
Health
Polio: FG to begin second round of vaccination in high-risk states September 11
He noted that efforts were ongoing to eradicate the new variant and improve vaccination coverage, especially in areas with porous borders.
States
Lagos police arrest painter over kidnap of seven-year-old child
The command’s spokesman said the suspect had confessed to the crime, stating that he kidnapped the child to raise money for personal family needs.
Heading 4
Oba of Benin suspends two chiefs over absence from palace duties
The statement said the suspension of John Igiehon, the Izuwako of Benin, and Aimuiukpomonyako Oghogho (Ebengho), the Oyenmwensoba of Benin, is with immediate effect.
