EU, German Agency Push for Small Claims Courts to Aid MSME Disputes in Nigeria

The European Union (EU), in collaboration With the German Agency for International Cooperation (GIZ) is promoting the use of Small Claims Courts (SCCs) to enhance commercial dispute resolution for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
In addition, the initiative supports the adoption of Multi-Door Courthouse Systems (MDCS) to offer accessible, affordable, and faster alternatives to traditional litigation, ultimately improving the business environment for MSMEs.
Head of Programme for Sustainable and Inclusive Economic Development and Decent Employment in Nigeria (SEDIN), Mr Markus Wauschkuhn, made the call yesterday at a peer learning workshop in Abuja.
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-VACEITARED 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.
Head of Component, GIZ-SEDIN, Mr Akiropo Omoware, 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.