CBN Proposes Mediation Panel for Loan Disputes

The Central Bank of Nigeria (CBN) has proposed the creation of a Mediation Dispute Resolution Panel (MDRP) to facilitate the resolution of loan-related disputes, as outlined in a circular issued on Tuesday. This initiative aims to reduce reliance on court systems and enhance the financial ecosystem by providing a specialized, cost-effective platform for dispute resolution.

The MDRP will have exclusive jurisdiction over disputes arising from the implementation of the Secured Transactions in Movable Assets (STMA) Act. The panel will consist of 30 professionals with at least 10 years of experience in law, banking, and financial dispute resolution, operating on a rotating basis.

The process is designed to ensure faster outcomes, with decisions expected within 90 days of the first hearing. The CBN will subsidize administrative fees for the panel, which will also emphasize confidentiality in mediation proceedings.

Stakeholders are invited to submit comments on the draft guidelines by October 9, 2026, as part of the policymaking process.