The Abuja Chamber of Commerce and Industry has urged small and medium-sized enterprises to adopt its Mediation Rules 2019 for faster, cheaper debt recovery and commercial dispute resolution.

Hauwa Usman, registrar-general of the Nigerian Chambers of Commerce Dispute Resolution Centre, gave the advice on Thursday in Abuja.

She said the Mediation Rules 2019 of the NCCDRC/ACCI were designed to provide a swift, cost-effective and amicable alternative dispute resolution, and the rules outline a structured framework for resolving disputes out of court.

Ms Usman said that the mediation rules offered an affordable route for small-business disputes, adding that they also provided a fast, confidential and legally enforceable pathway.

The registrar-general described the rules as an underutilised resource for the SMEs seeking to recover debts, resolve supply chain disagreements and enforce commercial obligations without resorting to costly and protracted litigation.

Ms Usman explained that a party could initiate mediation proceedings at the NCCDRC by sending a simple written request.

She said that such a request could be made through email, setting out the nature of the dispute and the relief sought.

According to her, there are no complex filings, no mandatory legal representation at commencement and no prohibitive upfront costs.

Ms Usman said that confidentiality remained central to its mediation process under Rules 7 and 8 of the Mediation Rules 2019.

She said that information disclosed during mediation was inadmissible in subsequent court or arbitration proceedings, thereby allowing parties to negotiate freely without fear of future legal consequences.

The registrar-general said confidentiality encouraged honesty and creativity, increasing the chances of achieving mutually acceptable settlements.

Ms Usman said that parties were more willing to engage honestly and explore practical solutions when mediation discussions could not be used against them in later proceedings.

She said that each party bears its legal representation costs, while mediation expenses are shared equally unless the parties agree otherwise, in line with Rule 14.2.

The registrar-general added that excess deposits paid towards mediation costs were refunded to parties after the conclusion of the proceedings.

She noted that the mediation agreements were reduced to writing, signed by the parties and the mediator, and became legally binding under Rule 13.

She noted that mediated settlements differ from informal negotiations because they have the force of a binding contract, which would be enforceable in court if breached.

Ms Usman urged SMEs, market associations, logistics firms and service providers to include NCCDRC mediation clauses in commercial contracts.

She also encouraged businesses to approach the centre promptly whenever disputes arose, rather than resorting to litigation or incurring avoidable commercial losses.

(NAN)