The Abuja Chamber of Commerce and Industry (ACCI), has urged Small and Medium-sized Enterprises (SMEs) to adopt its Mediation Rules 2019 for faster, cheaper debt recovery and commercial dispute resolution.
Mrs Hauwa Usman, Registrar-General, Nigerian Chambers of Commerce Dispute Resolution Centre (NCC-DRC/ACCI), gave the advice in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.
She said the Mediation Rules 2019 of the NCCDRC/ACCI was designed to provide a swift, cost-effective and amicable alternative dispute resolution and the rules outline a structured framework for resolving disputes out of court.
Usman said that the mediation rules offered affordable route for small business disputes, adding that the rule also provided a fast, confidential and legally enforceable pathway.
The registrar-general described the rules as an underutilised resource for the SMEs seeking to recover debts, resolve supply chain disagreements and enforce commercial obligations without resorting to costly and protracted litigation.
“The rules also provide the pathway to resolve commercial disputes that most Nigerian businesses currently abandon rather than pursue in court.
“A significant number of commercial disputes involving modest sums, ranging from unpaid invoices and service fee disagreements to tenancy and supply disputes abound in our society.
“These disputes go unresolved in Nigeria each year because the parties involved consider the cost and duration of court proceedings disproportionate to the amounts at stake.
“There is a widespread but mistaken belief that justice is only accessible to those with large claims and deep pockets. Our mediation rules were designed precisely to dismantle that assumption,’’ she said.
Usman explained that a party could initiate mediation proceedings at the NCCDRC by sending a simple written request.
She said that such request could be through email, setting out the nature of the dispute and the relief sought.
According to her, there are no complex filings, no mandatory legal representation at commencement and no prohibitive upfront costs.
“Under Rule 2.3 of the Mediation Rules, a party initiates proceeding by notifying the other side in writing with a brief description of the dispute.
“The description is the estimated value of the claim and contact details of the parties involved. The other party then has 21 days to accept or reject the invitation.
“If no response is received within that period, the initiating party may treat the silence as a rejection and consider other available remedies,’’ she said.
Usman said that confidentiality remained central to its mediation process under Rules 7 and 8 of the Mediation Rules 2019.
She said that information disclosed during mediation was inadmissible in subsequent court or arbitration proceedings, thereby allowing parties to negotiate freely without fear of future legal consequences.
The registrar-general said confidentiality encouraged honesty and creativity, increasing the chances of achieving mutually acceptable settlements.
“Confidentiality is not merely a procedural nicety. It is what makes mediation work,” she said.
Usman said that parties were more willing to engage honestly and explore practical solutions when mediation discussions could not be used against them in later proceedings.
She said that each party bears its legal representation costs, while mediation expenses were shared equally unless the parties agree otherwise, in line with Rule 14.2.
The registrar-general added that excess deposits paid towards mediation costs were refunded to parties after the conclusion of the proceedings.
She noted that the mediation agreements were reduced into writing signed by parties and the mediator and become legally binding under Rule 13.
She noted that mediated settlements differ from informal negotiations because they have the force of a binding contract which would be enforceable through the courts if breached.
“The rules allow mediation alongside arbitration, enabling parties to suspend arbitral proceedings and attempt an amicable settlement.
“Successful mediation automatically terminates arbitration, while unsuccessful mediation allows arbitration proceedings to resume without prejudice,’’ she said.
Usman urged SMEs, market associations, logistics firms and service providers to include NCCDRC mediation clauses in commercial contracts.
She also encouraged businesses to approach the centre promptly whenever disputes arose instead of resorting to litigation or absorbing avoidable commercial losses.
“The NCCDRC is the dispute resolution arm of the ACCI, providing commercial mediation and arbitration services across Nigeria,’’
“The centre remained committed to delivering accessible, efficient and internationally recognised dispute resolution services for businesses of all sizes,’’ she said.
