LACIAC proffers solutions to business financing, contract disputes

The Lagos Chamber of Commerce International Arbitration Centre [LACIAC] has proffered sustainable solutions to business financing, providing alternative dispute resolution mechanisms for investors.

At a roundtable held by LACIAC in conjunction with Yusuf Ali & Co and Perchstone & Graeys, investors harped on the need for Nigeria to remove bottlenecks to capital access while urging reforms that would ensure that business owners get justice within the shortest possible time.

“How long does it take for litigation and judgement to be given? If I have put in a huge amount of money and there is a dispute leading us to court, I do not want to spend all the time going to the Supreme Court,” Elizabeth Ekpenyong, partner, Perchstone & Graeys, said during the panel discussion.

“Another issue is, how easy do we enforce contracts? Even if there is a judgement, how easy is it to enforce it?” Ekpenyong asked.

She pointed out that it was necessary for investors to a clear picture of return on investment, urging the government to ensure that changes in policies were minimal.

“What public institutions are supporting investors? Who are the people there?” she asked.

She explained that it was not right for the government to shift policies after investors had pumped money into different sectors, stressing the need for transparency in every process.

Navjeet Virk, partner at Pinsent Masons, London, stated that it was necessary for the Nigerian government to reduce the requirements for accessing some of the available funds.

“One of the issues investors face is uncertainties in government regulations and policies. If investors sign a contract for 25 years, if there is a change in government, what happens?” Virk asked.

“From the investors’ perspective, I am not saying that laws should not change, as far as the playing field remains the same. If we agreed that in X years you would pay me X amount of money, this should not change even if laws changed,” she argued.

She called on the government to reduce conditionality attached to many funds sitting in banks to ensure small and medium businesses have access to finance.

The participants agreed that Alternative Dispute Resolution [ADR] was the best for a developing economy like Nigeria.

“Settling commercial disputes through the courts processes can be frustrating, tortuous and time consuming. This is why the idea of providing an ADR platform was conceived by the chamber, few years ago. Our belief is that investors will be more comfortable with ADR than the conventional court processes,” said Babtunde Paul Ruwase, president of LCCI, represented by Hakeem Ogunniran, council member of the chamber.

“LACIAC’s success is hinged on its ability to develop a reputation as a world-class arbitration centre. I have been assured by the Chairman, Board of Governors, Babatunde Faghohunlu, SAN that this would be done,” Ruwase said.

Funmi Iyayi, CEO of LACIAC, said, “We provide the background to allow businesses to thrive and ensure that transactions are enforceable and the parties are able to realise the details of the transactions.”

ODINAKA ANUDU