GIZ pushes for small claims courts to aid MSME disputes
Advocacy
By Diana Omueza
The German Agency for Development (GIZ) is championing the use of small claims courts to resolve disputes involving Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
The initiative is being implemented through its Sustainable and Inclusive Economic Development Programme (SEDIN) and the EU-funded Agriculture Value Chain Facility (EU VACE/TARED).
Mr Markus Wauschkuhn, Head of Programme for Sustainable and Inclusive Economic Development and Decent Employment (SEDIN), made the call during a peer learning workshop in Abuja.
He said the initiative aimed to strengthen access to justice for MSMEs, reduce the burden on regular courts, and create a more efficient dispute resolution mechanism to support business growth and economic inclusion.
Wauschkuhn said the alternative dispute resolution mechanisms offered quicker, more accessible and affordable options for resolving business conflicts, which were critical for improving the business environment and reducing legal bottlenecks for MSMEs.
“MSMEs are the backbone of Nigeria’s economy, yet they often face challenges in accessing legal and financial support.
“Small Claims Courts and Multi-Door Courthouses provide a timely, cost-effective solution for resolving issues like debt recovery.
“The SEDIN programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and supported by the EU-VACE/TARED initiative, is being implemented by GIZ in 10 Nigerian states.
“It aims to enhance cross-state collaboration, monitoring and evaluation, and strategic communication to support economic development,” he said.
Wauschkuhn also stressed the importance of peer learning to close operational gaps among dispute resolution stakeholders, enhance capacity, and standardise effective practices across states.
Mr Akiropo Omoware, Head of Component, GIZ-SEDIN, urged business owners to understand and properly document contracts to reduce the likelihood of disputes.
“Disputes are inevitable, but many arise because people fail to read or understand contract terms before signing,” he said.
Also speaking, Mr Segun Ogunyannwo, President of the Mediation Training Institute of Nigeria, called for greater awareness and use of mediation through small claims courts and multi-door courthouses.
Participants at the workshop included legal professionals, magistrates, and representatives of the Nigerian Bar Association (NBA) from Lagos, Ogun, Edo, Ondo, Niger, Plateau, Cross River, Kano, Kaduna, Oyo, and the Federal Capital Territory.
.(NAN)(www.nannews.ng)
Edited by Abiemwense Moru
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