Court delays, legal disputes undermine business climate, says legal expert

Cecil Osakwe, Managing Director of Alkire Partners Nig Ltd, has said persistent court adjournments, overlapping civil and criminal proceedings, and delayed judicial processes are increasingly discouraging investment and disrupting enterprise growth in Nigeria.

Osakwe, a property developer and legal practitioner, stated this in Abuja on Wednesday, while expressing concern over growing legal uncertainty and prolonged court processes affecting business operations, particularly in high-value sectors such as real estate.

He noted that while success in sectors like real estate often comes with heightened exposure to disputes, many of such disputes escalate into prolonged legal battles that strain operations and capital.

“Land acquisition continues to be one of the most sensitive aspects of property development in Nigeria,” Osakwe said, stressing the need for rigorous due diligence in verifying titles, ownership structures and regulatory compliance.

He added that lapses in these areas frequently result in disputes that linger in court, leading to financial losses and project delays.

Osakwe spoke against the backdrop of ongoing proceedings before the Federal Capital Territory High Court in a case marked FCT/HC/CR/222/2023, in which he and others, including lawyer Victor Giwa, are facing a nine-count charge bordering on alleged criminal intimidation, threat to life, forceful eviction and property damage valued at about ₦300 million.

The matter has suffered repeated adjournments, with arraignment stalled on several occasions due to the absence of some defendants and the ongoing review of charges by the Director of Public Prosecutions.

While the court is yet to determine the merits of the case, Osakwe said the experience reflects a broader challenge confronting entrepreneurs across Nigeria’s real estate, manufacturing, fintech and infrastructure sectors.

He argued that commercial disputes are increasingly being escalated into criminal allegations, a trend he said contributes to reputational damage, operational disruptions and rising legal costs for business owners, even before judicial resolution.

A business operator who requested anonymity said the legal environment has become part of the risk burden for entrepreneurs in high-value sectors, noting that prolonged litigation can stall projects and deter investors.

Nigeria’s judicial system, widely regarded as burdened by case backlogs, has also been criticised for delays that often extend the lifespan of commercial disputes.

Analysts say such delays could weaken investor confidence, particularly in environments where time-sensitive capital decisions are critical to business growth.

Osakwe added that while accountability remains essential and genuine wrongdoing must be addressed, stronger safeguards are needed to ensure that commercial disputes are not unnecessarily prolonged or escalated in ways that undermine enterprise development.