An Examination Of Laws And Procedures Regulating Trade Disputes In Nigeria -By Oyetola Muyiwa Atoyebi & Prince Igho

INTRODUCTION

Trade disputes are an inherent aspect of any vibrant and evolving economy, and Nigeria is no exception. As a nation with a diverse and dynamic marketplace, the effective regulation and resolution of trade disputes play a vital role in fostering economic growth, ensuring fair competition, and maintaining investor confidence.

In Nigeria, it is evident that the rise in commercial activities in the country has led to not only domestic and international growth, but has led to an increase in trade disputes which arise from contractual breaches, disagreements over trade terms, or regulatory issues, with its implications being bad for businesses, investors, and the overall economy. This has led to the enactment of viable laws and regulatory procedures for trade disputes to aid in curbing the increase in trade disputes in Nigeria.

This article seeks to explore the key features and provisions of these laws and procedures, shedding light on the mechanisms available for resolving trade disputes in Nigeria. This will encompass an analysis of formal mechanisms, such as litigation, and alternative dispute resolution methods like arbitration, mediation, and conciliation. Furthermore, Understanding the role of regulatory bodies in resolving trade disputes in Nigeria.

LEGISLATION GOVERNING TRADE DISPUTES

1. Trade Dispute Act, 1976[1]:

The Trade Dispute Act is a fundamental piece of legislation that provides the legal framework for managing trade disputes in Nigeria. It establishes the rights and obligations of employers, employees, and trade unions, and outlines procedures for resolving disputes.

1. Labour Act, 2004[2]:

The Labour Act complements the Trade Dispute Act by regulating employment relationships, including terms and conditions of work, grievance procedures, and the rights of workers. It also addresses trade disputes arising from labour-related issues.

1. The Federal Competition and Consumer Protection Act (FCCPA), 2019[3]:

The Federal Competition and Consumer Protection Act (FCCPA) plays a crucial role in resolving trade disputes by promoting fair competition, protecting consumers, and ensuring market efficiency in Nigeria. Enacted in 2019, the FCCPA establishes a comprehensive legal framework to address various issues related to trade disputes, including anti-competitive practices, consumer rights violations, and unfair trade practices. The act empowers the Federal Competition and Consumer Protection Commission (FCCPC) as the regulatory body responsible for enforcing the provisions of the act and resolving trade disputes. Through its enforcement powers, the FCCPC investigates complaints, conducts inquiries, and takes appropriate actions to address anti-competitive behaviour, protect consumer interests, and maintain a level playing field for businesses. The FCCPA’s role in resolving trade disputes contributes to fostering a competitive and transparent business environment, promoting economic growth, and safeguarding consumer welfare in Nigeria.

1. National Industrial Court (NIC) Act of 2006[4]:

The National Industrial Court Act establishes the National Industrial Court (NIC), which is a specialized court in Nigeria dedicated to resolving trade disputes and labour-related matters. The NIC has exclusive jurisdiction over labour disputes and plays a crucial role in adjudicating trade disputes, interpreting relevant laws, and promoting fair labour practices.

1. The Arbitration and Mediation Act of 2023:

The Arbitration and Mediation Act governs the arbitration process in Nigeria, which is a widely used method for trade dispute resolution. The act provides the legal framework for conducting arbitration proceedings, appointing arbitrators, and enforcing arbitral awards. It aligns with international best practices and ensures that arbitration remains an effective and reliable means of resolving trade disputes in the country.

These laws, along with other related regulations and guidelines, form the legal framework for trade dispute resolution in Nigeria. They provide rights and obligations for the parties involved, outline procedures for resolving disputes, and establish mechanisms for enforcement and compliance.

DISPUTE RESOLUTION MECHANISMS

1. Negotiation and Mediation:

Negotiation and mediation are widely employed methods for resolving trade disputes in Nigeria. Parties involved in a dispute can voluntarily engage in negotiations or seek the assistance of a neutral third party to facilitate discussions and find mutually acceptable solutions.

1. Conciliation:

Conciliation involves the intervention of a neutral third party, typically appointed by the Ministry of Labour and Employment, to help parties reach a settlement. The conciliator’s role is to facilitate communication and propose potential solutions, but the outcome is non-binding.

1. Arbitration:

Arbitration is another common method used in trade dispute resolution. It involves the appointment of an impartial arbitrator or a panel to hear the case and render a binding decision. The Arbitration and Conciliation Act governs the arbitration process in Nigeria.

ROLE OF REGULATORY BODIES IN RESOLVING TRADE DISPUTES IN NIGERIA

Nigeria, as one of Africa’s largest economies and an active participant in international trade, faces its fair share of trade disputes. To ensure a fair and equitable resolution of these conflicts, regulatory bodies play a crucial role in maintaining stability, fostering trust, and promoting a conducive environment for trade.

These regulatory bodies serve as important intermediaries, overseeing and enforcing trade regulations, policies, and agreements. These organizations are responsible for monitoring trade practices, ensuring compliance with legal frameworks, and resolving disputes that may arise between parties engaged in trade activities. By establishing clear guidelines and mechanisms for dispute resolution, these regulatory bodies provide a structured framework to handle conflicts, thereby safeguarding the interests of both domestic and international traders.

Furthermore, the regulatory bodies operating in Nigeria are entrusted with the task of promoting fair trade practices, protecting consumers’ rights, and facilitating an efficient and transparent trade environment. The main regulatory bodies involved in trade dispute resolution in Nigeria include the Nigerian Customs Service (NCS), the Nigerian Export Promotion Council (NEPC), the Standards Organization of Nigeria (SON),the Ministry of Labour and Employment, Trade Unions and Employers’ Associations, Federal Competition and Consumer Protection Commission(FCCPC),National Industrial Court, among others.

1. Nigerian Customs Service:

The Nigerian Customs Service plays a vital role in regulating and facilitating international trade at the country’s borders. It ensures compliance with trade regulations, tariffs, and customs procedures, thereby preventing disputes related to duties, tariffs, and other cross-border trade issues. Additionally, the Nigerian Customs Service provides an avenue for traders to raise complaints or disputes through its dispute resolution mechanisms, which help in resolving conflicts efficiently.

2. Nigerian Export Promotion Council:

The Nigerian Export Promotion Council focuses on promoting Nigerian products and services in the international market. It plays a key role in addressing disputes related to export processes, documentation, and quality control. The council works closely with relevant stakeholders to mediate and resolve conflicts, thereby protecting the interests of Nigerian exporters and enhancing their competitiveness in the global marketplace.

3. Standard Organization of Nigeria:

The Standards Organization of Nigeria is responsible for ensuring product standards, quality, and safety in both domestic and international trade. By enforcing regulatory requirements and facilitating the resolution of disputes arising from product quality or compliance issues, the organization plays a critical role in maintaining consumer confidence and protecting the reputation of Nigerian products in the global market.

4. Ministry of Labour and Employment:

The Ministry of Labour and Employment oversees labour-related matters in Nigeria and facilitates dispute resolution through its departments, such as the Industrial Relations Department and the National Productivity Centre. The ministry provides mediation, conciliation, and arbitration services to promote amicable resolutions.

5. Trade Unions and Employers’ Associations:

Trade unions and employers’ associations represent the interests of workers and employers, respectively. These organizations play an essential role in collective bargaining, promoting harmonious industrial relations, and participating in trade dispute resolution processes.

6. Federal Competition and Consumer Protection Commission (FCCPC):

The Federal Competition and Consumer Protection Commission(FCCPC)created under the Federal Competition and Consumer Protection Act, 2019[5]plays a significant role in resolving trade disputes. The FCCPC is the regulatory body responsible for enforcing competition and consumer protection laws in the country. When it comes to trade disputes, the FCCPC serves as an important institution for addressing issues and ensuring fair trade practices. The steps FCCPC takes include: investigation; mediation and settlement; enforcement of FCCPA laws; advocacy and awareness of consumer rights and fair-trade practices; and finally, collaboration and cooperation with other regulatory bodies such as NCC, SEC or NERC, to address disputes that fall within their shared jurisdiction.

7. National Industrial Court[6]:

The National Industrial Court (NIC) is the specialized court in Nigeria responsible for handling trade dispute cases. The NIC has exclusive jurisdiction over labour-related matters and plays a crucial role in adjudicating disputes, interpreting relevant laws, and promoting fair labour practices. The Court will always recommend an out of Court settlement before delving into litigation of the Matter.

RECENT DEVELOPMENTS AND CHALLENGES

1. Alternative Dispute Resolution (ADR):

Nigeria has recognized the importance of ADR methods in trade dispute resolution. Efforts are being made to encourage parties to explore mediation and arbitration as alternatives to lengthy court proceedings. ADR offers the benefits of speed, cost-effectiveness, and flexibility.

1. Challenges in Enforcement:

One of the key challenges in trade dispute resolution in Nigeria is the enforcement of decisions. Despite having established laws and procedures, the timely enforcement of rulings and compliance by parties remains an ongoing concern. Enhancing enforcement mechanisms is crucial to ensure the effectiveness of the trade dispute resolution system.

CONCLUSION

Effective laws and procedures for trade dispute regulation are vital for fostering a favourable business climate in Nigeria. By examining the legislation governing trade disputes, the various dispute resolution mechanisms available, and the roles played by regulatory bodies, it becomes clear that Nigeria has made significant strides in managing trade disputes. However, ongoing efforts are needed to address challenges and further strengthen the system, ensuring fairness, efficiency, and compliance in trade dispute resolution processes.

SNIPPET

As one of Africa’s largest economies, Nigeria relies on a robust legal framework and effective procedures to regulate trade disputes and maintain a fair and transparent business environment.

KEYWORDS: ADR, National Industrial Court, FCCPA, FCCPC, Labour Act, Labour Law, Labour, Trade, Employment, Trade Disputes.

AUTHOR: Oyetola Muyiwa Atoyebi, SAN

Mr Oyetola Muyiwa Atoyebi, SAN is the Managing Partner of O. M. Atoyebi, S.A.N & Partners (OMAPLEX Law Firm).

Mr. Atoyebi has expertise in and a broad knowledge of Litigation Practice and this has seen him advise and represent his vast clientele in a myriad of high-level transactions.  He holds the honour of being the youngest lawyer in Nigeria’s history to be conferred with the rank of Senior Advocate of Nigeria.

He can be reached via atoyebi@omaplex.com.ng

CONTRIBUTOR: Prince Igho

Prince is a member of the Dispute Resolution Team at OMAPLEX Law Firm. He also holds a commendable legal expertise in Litigation Practice.

He can be reached via prince.igho@omaplex.com.ng

[1]Trade Dispute Act, 1976

[2]Nigerian Labour Act, CAP L1 Laws of the Federation of Nigeria, 2004

[3]Federal Competition and Consumer Protection Act, 2019

[4] National Industrial Court Act, 2006

[5]Section 3, FCCPA, 2019

[6]Section 254C, CFRN 1999 (as amended)