Arbitrators set to launch mediation scheme for MSMEs

Chartered Institute of Arbitrators (CIArb) Nigeria branch is set to launch a mediation scheme to give access to ADR for micro, small and medium enterprises (MSMEs).
Benefits of the scheme include minimised fees and predetermined costs, speed, minimised formalities, simplicity, privacy and confidentiality and enforceability of awards like a court judgment.
Speaking about the event, which will take place at Lagos Court of Arbitration (LCA), ICCA Building, in Lagos on July 6, the branch chair, Doyin Rhodes-Vivour, says the scheme is in line with the Institute’s commitment to making access to ADR to a wider category of business owners with reduced costs and quick timelines.
“The scheme offers convenience of pre-determined, low budget arbitration costs. Arbitrators’ fees are fixed. Also, maximum arbitration and parties expenses recoverable by one from another are known from the onset.
“Arbitration is concluded and awarded issued within shortest possible time. Formal procedural steps are kept to a minimum. The scheme is so simple that legal representation may be unnecessary. The process is private and confidential.
“An award from the Scheme is final, binding and can be enforced like any court judgment,” Rhodes-Vivour says in a statement to announce the event.
She emphasises that MSMEs are an integral part of the economic fabric of any nation and need to be fully aware of alternative means of resolving their business disputes outside the court system.
“The CIArb Nigeria Branch MSME Scheme was developed as a means to promote and formulate access by MSMEs to arbitration and ADR for resolution of commercial disputes.
“The scheme provides simple cost effective and timely resolution of disputes and an outcome within 90 days of the appointment of the arbitrator. The outcome is final legally binding and enforceable.
“The MSME scheme is applicable for disputes of monetary value between N250,000 and N5 million the arbitrators’ fees have been capped to ensure that the expense does not prevent access to settlement by MSMEs,” she says.
Juwon Adenuga, chairman of the scheme’s committee, says it is modelled on the Business Arbitration Scheme (BAS) of the Chartered Institute of Arbitrators International and has proved effective in other jurisdictions, contributing to the growth and development of MSMEs.

“The event will be most beneficial to small and medium enterprise owners, business entrepreneurs, in-house counsel and interested members of the public involved in small claim transactions.

“While attendance is free, prior registration is required to enable entry to the event,” the statement adds.

 

THEODORA KIO-LAWSON