CBN plans mediation panel to resolve loan disputes
The Central Bank of Nigeria has proposed a mediation panel to handle loan-related disputes before they reach the courts. The initiative aims to streamline the resolution process for conflicts arising from secured lending transactions involving movable assets. The panel will operate under the Secured Transactions in Movable Assets Act, 2017, and is designed to boost confidence in movable-asset-backed lending. CBN is seeking stakeholder feedback on draft guidelines for this new dispute resolution mechanism.
What we know
- CBN issued a circular inviting comments on draft guidelines for a Mediation and Dispute Resolution Panel.
- The panel will have first jurisdiction over disputes related to secured lending and movable assets.
- It aims to provide a cost-effective, specialized platform for resolving these disputes and will deliver decisions within 90 days of the first hearing.
- The panel will consist of professionals from law, banking, finance, and dispute resolution, with at least 10 years’ experience.
- Decisions made by the panel will be legally binding and enforceable in court as consent judgments, with limited rights to appeal.
