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.