By Merit Ibe
The Lagos Multi-Door Courthouse (LMDC) with support of the pro-poor growth and promotion of employment in Nigeria programme (SEDIN), has emphasised the need for micro small and medium enterprises (MSMEs ) to adopt Alternative Dispute Resolution (ADR) mechanisms to resolve disputes.
The advice was given by the LMDC recently in a workshop organised to mark its 20th anniversary entitled ‘Alternative Dispute Resolution as a mechanism for resolving MSMEs Dispute.’
Facilitators at the event harped on the importance to include the clause to settle differences whether by negotiation, mediation or arbitration while drafting their contractual agreement.
Chairman, LMDC Governing Council, Justice Jumoke Pedro, remarked that the anniversary was time to reflect on what the LMDC has achieved so far with regards to ADR in the state.
She noted that the MSMEs were brought to the focus because the courthouse realised that most of them have unresolved disputes and kept going to the court, when the conflicts can be resolved by exploring the ADR mechanisms, adding that nothing was actually wrong with going before the court.
“When they explore these ADR mechanisms, they don’t have to come to the court. We appreciate the court and know what the court is doing but most of the cases there don’t need to be there. You don’t need to file your case before the court before you can get a resolution. Resolution should be short, cost-effective, timely and that is what ADR provides. We will continue to sensitise members of the public to let them know that the LMDC is there. We have the online area ADR. You may not need to leave your home it’s a quick way to resolve our disputes.”
Head of Strategy and policyy unit, GIZ-SEDIN, Akinropo Omoware, noted that the pro-poor growth and promotion of employment in Nigeria program (GIZ-SEDIN), which is funded by the European Union is one of the programmes of GIZ in Nigeria. He said the GIZ-SEDIN is working in nine focus states and Lagos is one of the states to see how to improve the system for resolving commercial disputes in Nigeria because this has some financial implications and otherwise on MSMEs.
He noted that one of he objectives of the GIZ-SEDIN is to see that the income situation of small businesses are improved and that jobs are created, support effective resolution of disputes in focus states, adding that part of the support is the establishment of a multi-door courthouse, which makes sure that the system already in operation is effective towards ensuring that SMEs are able to resolve their disputes amicably in a cost-effective manner, thereby facilitating their growth.
Olayinka Kolade, Faculty, LMDC, spoke on drafting and enforcement of dispute resolution clauses in business contracts which are contractual provisions by which parties specify how their disputes are to be resolved in their contracts. According to her, it is arguably the most important clause in a contract or agreement because it determines whether or not the relationship of the parties in the contract will be brought to a term or close.