CIArb launches MSME arbitration scheme to facilitate commercial dispute resolution
In a bid to promote and facilitate access for Micro, Small and Medium Enterprises, (MSME) to cost effective and timely arbitration for resolution of commercial disputes in Nigeria, the Nigeria Branch of the Chartered Institute of Arbitrators (CIArb) has launched its MSME arbitration Scheme.
This launch is said to be timely for Nigeria and for MSME sector in Nigeria, as the sector currently employs almost 60million Nigerians and accounts for 48percent of the country’s Gross Domestic Product.
The Institute through this scheme has promised to provide MSMEs with simple, cost effective and timely resolution of disputes by the final, legally binding decision of an arbitrator within stipulated strict timeline.
Speaking during the launch, Juwon Adenuga, Chairman of Arbitration Schemes Planning Committee assured that the scheme will provide simple, cost effective and timely resolution of disputes by the final, legally binding and enforceable decisions of Sole Arbitrators in less than 90 days from the appointment of the Arbitrators or as soon as possible.
Adenuga listed some of the scheme’s benefits to include minimized fees and pre-determined costs, speed, minimized formalities, simplicity, privacy and confidentiality and enforceability, amongst others.
Speaking on the recommended arbitration clause, he said, “Any dispute, controversy or claim arising out or in connection with the contract, or the breach, termination or validity thereof, shall be settled by final and binding arbitration, in accordance with MSME Arbitration Scheme Rules, by a single Arbitrator appointed by the chairman of the CIArb.”
Rotimi Ogunleye, Lagos State Commissioner for Commerce, Industry and Cooperative during the launch said that the timing of the innovative scheme could not have been most appropriate in view of the current aggressive promotion of the ‘Patronise Made in Nigeria Good’ which majorly concerns the MSMEs.
“Accordingly, any initiative that will enhance MSMEs productivity such as the one we are launching today would be gladly supported by the Lagos State Government, more so that the aim of the scheme is to reduce the cost and time settlement of disputes involving MSMEs operators, as they indeed deserve to given preferential status of undelayed justice delivery,” Ogunleye said.
He assured that the scheme will essentially expand the frontiers of MSMEs contribution to the state and nation’s economy as inevitable transactional disputations will be resolved expeditiously through the avoidance of the pitfalls and challenges in the conventional judicial processes.
Bayo Ojo, former Attorney General of the Federal Republic of Nigeria during a panel discussion at the event said that so much effort had been put in place to initiate the scheme, adding that the scheme will definitely take the ease of doing business in Nigeria to the next level.
Doyin Rhodes-Vivour, chairperson of the branch, said “The scheme gives access to MSMEs to resolve disputes at very minimal cost. Arbitration is a party-driven process. It is premised on party autonomy. One of the advantages is that you get to choose who resolves your dispute. We have a list of arbitrators of the institute who have signed on to the scheme. When a dispute arises, parties will have the option to choose an arbitrator from that. If they want us to appoint for them, we will.
“On cost, when you make a request for the arbitration, you pay a non-refundable administration fee of N10,000. For commercial disputes with monetary value from N250,000 to N1million, the arbitrator’s fee is fixed at N50,000 and all other recoverable arbitration and party expenses will be capped at a maximum of N25,000.”