Central Bank of Nigeria has proposed a specialised mediation panel to resolve disputes in secured lending, cutting court delays and boosting asset-backed loans.
In a circular signed by P. I. Oluikpe, Acting Director of the Development Finance Advisory Department, the CBN invited stakeholders to review draft guidelines for a Mediation and Dispute Resolution Panel under the Secured Transactions in Movable Assets Act.
The panel will hold exclusive first-instance jurisdiction over disputes from the Act, sidelining courts initially, the apex bank stated. It aims to fortify Nigeria's financial system with a swift, affordable resolution platform for creditor-borrower conflicts.
Anchored on the STMA Act's push for mediation as the primary step, the guidelines seek standardised procedures ensuring transparency, fairness and efficiency.
Panels of three experts—lawyers, bankers, financiers and arbitrators with 10 years' experience each—will rotate from a 30-member pool appointed by the CBN.
Decisions must come within 90 days of the first hearing, remain binding and enforceable as court judgments, with appeals allowed only on narrow legal grounds. Parties must first prove failed informal talks, like negotiations, and consent to confidentiality in all proceedings.
Funding draws from CBN backing, fees and contributions. Stakeholders have until October 9, 2026, for feedback. This builds on CBN's recent credit-tightening moves, such as barring non-performing loan defaulters from banking services to stabilise the sector.
