Regulatory Alerts2026-04-10 | DFA/DIR/PUB/CIR/001/001Invitation For Inputs on the Draft Guidelines for the Mediation and Dispute Resolution Panel (MDRP) for Secured Transactions in Movable Assets (STMA)
The Central Bank of Nigeria has issued draft guidelines to establish a Mediation and Dispute Resolution Panel (MDRP) to handle conflicts arising under the Secured Transactions in Movable Assets Act of 2017. The panel will function as a specialized, non-adversarial platform for resolving civil disputes between creditors and grantors, with decisions rendered within ninety days of the first hearing. Stakeholders are invited to submit comments regarding these operational procedures and guidelines to the Central Bank of Nigeria no later than 9th October 2026.
CENTRAL BANK OF NIGERIA: DRAFT GUIDELINES FOR THE MEDIATION AND DISPUTE RESOLUTION PANEL (MDRP) FOR SECURED TRANSACTIONS IN MOVABLE ASSETS
Invitation for Inputs
The Central Bank of Nigeria is soliciting feedback on the draft guidelines for the Mediation and Dispute Resolution Panel (MDRP). Comments must be submitted to ncr@cbn.gov.ng by 9th October 2026.
Overview
The Secured Transactions in Movable Assets (STMA) Act, 2017 mandates the establishment of the MDRP as the primary recourse for settling civil disputes between creditors and grantors. The panel is designed to provide a specialized, cost-effective, and transparent framework for managing security interest disputes, thereby increasing efficiency and confidence in the movable asset-based lending ecosystem.
Core Functions and Authority
The panel holds exclusive first-instance jurisdiction to hear and determine disputes related to the STMA Act. Its primary mandate is to preserve relationships via non-adversarial resolution, resolve disputes systematically, and deliver final decisions within 90 days of the first hearing.
Membership and Structure
The panel consists of three members selected from a pool of 30 professionals with at least ten years of experience in law, banking, finance, or alternative dispute resolution. Appointments are for a renewable four-year term. The secretariat provides administrative support, including logistics, case tracking, and records management.
Procedures and Enforcement
Parties may submit disputes for mediation if they possess a duly executed security agreement and have perfected their security interest on the National Collateral Registry. Mediation awards are legally binding, and parties must comply within 30 days of the panel's pronouncement. Failure to comply permits the registration of the award as a court judgment via the Federal High Court.
Funding
Operations are funded through statutory subventions from the Central Bank of Nigeria, administrative fees paid by disputing parties, and corporate social responsibility contributions.