The Lagos State Government has disclosed that its Ministry of Justice resolved 3,000 petitions through Alternative Dispute Resolution (ADR), reducing potential liabilities of more than N1.2 billion to a settlement of N3 million.

Governor Babajide Sanwo-Olu disclosed this on Monday at the third annual Lagos Multi-Door Courthouse (LMDC) and Alternative Dispute Resolution (ADR) Stakeholders’ Summit held at the MUSON Centre, Lagos.

Sanwo-Olu, who was represented by the state Attorney-General and Commissioner for Justice, Mr Lawal Pedro (SAN), said the achievement demonstrated the economic benefits of resolving disputes amicably rather than allowing them to proceed through prolonged litigation.

The summit, themed, “Investor Confidence: ADR and Strengthening Nigeria’s Investment Climate,” brought together stakeholders in the justice sector, government, business community and legal profession to examine the role of effective dispute resolution in attracting investments and promoting economic growth.

The summit brought together judicial officers, legal practitioners, policymakers and other stakeholders to discuss how effective dispute resolution mechanisms could support commercial activities, protect investments and strengthen confidence in Nigeria’s justice system.

The governor said Lagos accounted for more than a fifth of Nigeria’s Gross Domestic Product and attracted a significant proportion of foreign capital entering the country, making an efficient justice system essential to sustaining its position as a commercial hub.

“Capital stays where the rule of law is depended on and commercial disputes are settled fairly and promptly. Prolonged litigation does the opposite,” he said.

Sanwo-Olu said no business, particularly a micro, small or medium sized enterprise, should collapse because a commercial dispute remained unresolved for years.

He described settlements facilitated by the LMDC as a means of releasing capital back into trade, payroll and production instead of allowing funds to remain tied down in litigation.

According to him, the state government has placed ADR at the centre of its ease-of-doing-business agenda and the security and governance pillars of its THEMES Plus Agenda.

He explained that the High Courts, Lagos Multi-Door Courthouse, Citizens Mediation Bureau and Lagos Court of Arbitration operated as a connected dispute-resolution system, with each institution handling disputes suited to its processes.

The governor reaffirmed his administration’s commitment to improving judicial infrastructure, citing new court facilities in Amuwo-Odofin and Epe.

He urged legal practitioners to promote ADR as the first resort in appropriate commercial disputes and encouraged them to study the newly introduced ADR Practice Direction to ensure its effective implementation.

“To our investors, domestic and international, let me say this plainly: Lagos is open for business, and Lagos is ready with justice.” He urged the stakeholders to help position the state as a leading centre of commercial justice in Africa.

The Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), in a goodwill message delivered on behalf of the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, said an efficient and credible dispute-resolution system was indispensable to strengthening investor confidence.

Fagbemi commended the Lagos State Judiciary, under the leadership of the Chief Judge, Justice Kazeem Alogba, for advancing ADR and improving access to justice through the LMDC.

He said the Federal Government was pursuing reforms to align Nigeria’s ADR framework with international best practices, including a review of the Arbitration and Mediation Act 2023 and the development of a National Policy on Arbitration.

He said the review committee was expected to address implementation challenges, harmonise ADR practices across jurisdictions and strengthen the enforceability of dispute-resolution outcomes.

The minister cited Singapore, the United Kingdom and Rwanda as jurisdictions from which Nigeria could draw lessons in using ADR to improve commercial certainty and attract investments.

He described the LMDC as Africa’s first court-connected ADR centre, saying its experience demonstrated that ADR was no longer merely an alternative to litigation but a necessity for modern justice delivery.

Fagbemi assured stakeholders of the Federal Government’s support for the LMDC and similar initiatives across the country, urging them to deepen collaboration and develop practical measures to improve commercial justice.

In her keynote address, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, also said efficient dispute prevention and resolution mechanisms were critical to attracting long-term capital and improving Nigeria’s investment climate.

Oduwole said investors considered not only market opportunities and economic reforms but also the reliability of institutions, clarity of regulations, enforceability of contracts and the ability to resolve commercial disputes fairly and promptly.

She said Nigeria’s economic reforms, including exchange-rate unification, fuel subsidy removal, tax reforms and banking recapitalisation, needed to be supported by institutional improvements that would encourage businesses to expand production, create jobs and sustain long-term operations.

The minister cited growth in capital importation as an indication of renewed investor interest but cautioned that the quality of investments mattered as much as their volume.

She said the government was working to attract more productive investments into manufacturing, agribusiness, financial technology, renewable energy and infrastructure.

Oduwole called for greater adoption of mediation and arbitration, noting that these mechanisms could reduce the cost and duration of commercial disagreements while preserving business relationships.

She also highlighted the proposed establishment of an investment ombudsman to help resolve investment grievances before they escalated into full disputes.

The Chief Judge of Lagos State, Justice Kazeem Alogba, called for stronger enforcement of settlement agreements and arbitral awards, improved professional training and greater use of technology to strengthen investor confidence.

Alogba disclosed that the LMDC had facilitated settlements involving N86,848,949,465.02, $151,802,894.82, £65,100 and €43,719.02 over the period under review.

He said the funds released through settlements could return to productive economic activities, including salary payments, business expansion and lending.

However, he warned that more needed to be done to improve compliance with settlement agreements and arbitral awards, urging judges, lawyers, court administrators, regulators and private-sector operators to work together.

He proposed a harmonised practice protocol for multi-door courthouses, a framework for faster enforcement of mediated settlements and arbitral awards, targeted training programmes and measurable targets for reducing the time and cost of commercial dispute resolution.

Alogba said the summit should produce practical recommendations and mechanisms for monitoring implementation rather than end with discussions alone.

The speakers agreed that credible institutions, predictable legal processes and accessible dispute-resolution mechanisms were essential to sustaining investor confidence, attracting productive capital and strengthening Nigeria’s competitiveness in the global economy.

Earlier, in her welcome address, the Chairman of the Lagos Multi-Door Courthouse (LMDC), Justice Jumoke Pedro, has said the institution has facilitated the recovery of billions of naira and millions of dollars through alternative dispute resolution (ADR) within five years.

Pedro disclosed was held to examine ways of strengthening Nigeria’s investment climate through effective dispute resolution and legal efficiency and also provided an opportunity to align investment policy with commercial justice and ADR practice.

She stressed that efficient dispute resolution was essential to building investor confidence and strengthening Nigeria’s economic institutions.

According to her, the gathering would enable stakeholders to examine how businesses could deploy ADR mechanisms to reduce commercial risks, protect investments and create a more predictable environment for economic transactions.

“We have been given access to invaluable opportunities today. Let us make that opportunity count. Let us use it to move from general recognition of ADR’s importance to practical commitment that strengthens investor confidence and improves Nigeria’s investment climate,” she said.

The LMDC chairman welcomed the participants on behalf of the institution’s Governing Council, management and staff, expressing the hope that their deliberations would produce fruitful outcomes.

She also welcomed Justice Robin Nuls, who was expected to deliver special remarks virtually on cross-border disputes, as well as a representative of the Governor of the Central Bank of Nigeria, who was scheduled to deliver a goodwill message.

Pedro said the keynote address and panel discussion would provide an opportunity for participants to explore practical approaches to using ADR to address commercial disagreements without allowing them to degenerate into prolonged court proceedings.

She acknowledged the leadership of the Chief Judge of Lagos State, Justice Kazeem Alogba, whom she credited with providing the support and institutional direction necessary for the LMDC to discharge its responsibilities.

NBA president, Mrs Oyinkansola Badejo-Okusanya and the representative of the Central Bank of Nigeria, Acting Director Legal Services Department, Mrs Ofure Alika remarked.