• FG plans investment ombudsman as Nigeria attracts $23bn in capital
Wale Igbintade
The Lagos Multi-Door Courthouse has facilitated the settlement or recovery of N86.8bn over five years, highlighting the economic importance of alternative dispute resolution (ADR) in unlocking funds tied up in commercial disputes and strengthening investor confidence.
The Chief Judge of Lagos State, Justice Kazeem Alogba, disclosed this yesterday at the third annual Multi-Door Courthouses and Alternative Dispute Resolution Stakeholders’ Summit at the MUSON Centre, Lagos.
The disclosure came as the federal government revealed that Nigeria attracted $23bn in capital importation in 2025, while its foreign exchange reserves exceeded $50bn.
The government also plans to introduce an investment ombudsman mechanism to address investors’ grievances before they escalate into formal disputes.
Justice Alogba said the funds recovered through the Lagos Multi-Door Courthouse demonstrated how ADR could return money to productive economic activities that might otherwise be delayed by prolonged litigation.
“Those are funds that have been released back into the economy for salaries, suppliers, expansions, and lending. That is what investor confidence looks like in practice,” he said.
The chief judge, however, called for faster enforcement of mediated settlements and arbitral awards, warning that the benefits of ADR would be undermined if parties could not rely on agreements being implemented.
He urged stakeholders to develop a harmonised practice protocol for multi-door courthouses, strengthen enforcement mechanisms, invest in technology and professional training, and increase public awareness of ADR.
He also advocated measurable targets to reduce the time and cost of resolving commercial disputes, noting that the effectiveness of the justice system was critical to building confidence among businesses and investors.
The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said Nigeria’s improving economic indicators needed to be supported by a predictable business environment where commercial disputes could be resolved fairly, efficiently and reliably.
She disclosed that capital importation grew by 83 per cent year-on-year, rising from $5.5bn in the first quarter of 2025 to more than $10bn in the first quarter of 2026.
According to her, the economy grew by more than four per cent in 2025 and sustained growth above that level in the first half of 2026.
She added that inflation declined from 33.2 per cent in 2024 to 14.63 per cent in September 2026, while non-oil exports exceeded $6bn.
The creative and digital sector, she said, accounted for approximately 18 per cent of Nigeria’s Gross Domestic Product.
Despite the positive indicators, Oduwole stressed that sustained investment depended on institutional reliability, regulatory clarity, enforceable contracts and effective mechanisms for resolving commercial disagreements.
“Investor confidence is not built by opportunity alone. Investors also consider the reliability and responsiveness of our institutions, the clarity of our regulations, the enforceability of contracts, and their ability to resolve commercial and investment disputes fairly and efficiently,” she said.
The minister said the federal government wanted to attract capital into productive sectors, including manufacturing, infrastructure, processing and other enterprises capable of generating employment and expanding economic activity.
“A predictable business environment attracts investment; it’s really that simple. Credible institutions sustain it, and effective dispute resolution helps to protect it,” she added.
Oduwole said the proposed investment ombudsman mechanism would provide an avenue for addressing investors’ complaints before they developed into formal disputes.
She said the initiative aligned with the investment framework under the African Continental Free Trade Area.
The minister also highlighted the establishment of small claims courts in 35 jurisdictions during her tenure as Special Adviser on Ease of Doing Business under the Presidential Enabling Business Environment Council, describing accessible dispute resolution as an important component of a business-friendly environment.
In his speech, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), said arbitration and mediation were essential to building trust, reducing investment risks and promoting sustainable economic growth.
He disclosed the federal government was pursuing reforms to strengthen Nigeria’s arbitration and ADR framework and position the country as a leading arbitration hub in Africa.
The initiatives include a review of the arbitration framework, the inauguration of a National Committee on the Review of the Arbitration and Mediation Act 2023, and the development of a National Policy on Arbitration.
Fagbemi commended the Lagos Multi-Door Courthouse, describing it as Africa’s first court-connected alternative dispute resolution centre.
Citing former United Nations Secretary-General Kofi Annan, he said, “Litigation may win cases, but mediation wins peace.”
He urged stakeholders to strengthen dispute resolution mechanisms to promote economic growth and improve Nigeria’s standing in international commercial dispute resolution.
In a related development, Governor Babajide Sanwo-Olu said Lagos State had resolved 3,000 petitions through ADR during the period under review, reducing a potential liability of more than N1.2bn to a settlement of N3m.
The governor disclosed this through the state Attorney-General and Commissioner for Justice, Lawal Pedro (SAN), who represented him at the summit.
Sanwo-Olu said the achievement demonstrated how ADR could reduce the financial burden of disputes on government and businesses while preserving commercial relationships.
“Capital stays where the rule of law is dependable and commercial disputes are settled fairly and promptly. Prolonged litigation does the opposite,” he said.
He added, “A settlement at the LMDC is more than a justice statistic; it is capital released back into trade, payroll and production that litigation would have locked up for years.”
The governor said Lagos remained committed to strengthening its justice institutions to support enterprise, innovation and investment, noting that the state accounted for more than one-fifth of Nigeria’s GDP.
He identified the High Courts, Lagos Multi-Door Courthouse, Citizens Mediation Bureau and Lagos Court of Arbitration as components of a connected justice system designed to ensure that disputes were handled by institutions suited to their nature.
Sanwo-Olu also cited new court facilities in Amuwo-Odofin and Epe, saying the government was working to bring justice closer to residents and businesses.
He reaffirmed the state’s commitment to maintaining Lagos as an arbitration-friendly jurisdiction where arbitral awards were recognised and enforced.
Addressing investors, the governor said, “To our investors, domestic and international, let me say this plainly: Lagos is open for business, and Lagos is ready with justice.”
He urged lawyers to make ADR their first resort in suitable commercial disputes and encouraged them to study the newly presented practice direction on ADR to ensure its proper application.
“Let us make Lagos not only the centre of commerce in Nigeria, but the centre of commercial justice in Africa,” he said.
The President of the Nigerian Bar Association, Oyinkansola Badejo-Okunsanya (SAN), called for greater participation by lawyers in arbitration, mediation and other forms of alternative dispute resolution.
She said legal practitioners needed wider access to training and transparent opportunities to serve as counsel, mediators, arbitrators and neutral evaluators.
Badejo-Okunsanya said the Lagos Multi-Door Courthouse, established on June 11, 2002, had pioneered a court-connected ADR model that inspired similar institutions in Abuja and several states, including Ogun, Oyo, Kaduna, Kano, Enugu, Edo and Rivers.
She commended the courthouse’s Settlement Week initiative, which provides free mediation for suitable court-referred and walk-in disputes, and called for an assessment of its impact.
The NBA president also noted that prolonged litigation could delay lawyers’ fees and make their earnings uncertain, adding that a stronger ADR system could expand professional opportunities for legal practitioners.
The Central Bank of Nigeria also highlighted ADR’s role in strengthening commercial certainty and returning recovered funds to the economy.
The CBN Governor, Olayemi Cardoso, stated this in a goodwill message delivered by the Acting Director of the bank’s Legal Services Department, Ofure Alika.
Cardoso commended the Lagos State Judiciary and the Lagos Multi-Door Courthouse for promoting dialogue, collaboration and efficient dispute resolution.
He said the funds recovered and released back into the economy demonstrated the practical benefits of ADR.
“This is evident from the amount of funds we just heard here today having been recovered and released back to the economy,” she said.
The CBN governor said credible dispute resolution mechanisms were critical to economic stability and sustainable national development, expressing confidence that the summit’s recommendations would strengthen justice, commercial certainty and Nigeria’s economic prospects.
The Chair of the Governing Council of the Lagos Multi-Door Courthouse, Justice Jumoke Pedro, urged stakeholders to move beyond general support for ADR and make practical commitments to strengthening commercial justice.
In her welcome address, Pedro said investment policy, commercial justice and dispute resolution needed to work together to reduce business risks, protect investments and strengthen investor confidence.
She called for a coordinated approach to ensure that dispute resolution mechanisms responded to the practical needs of investors and businesses.