Enforcing Contracts and Business Survival in Nigeria: Calling Legislative Attention to World Bank 2018 Findings

Abstract

This brief examined enforcing contracts and business survival in Nigeria with a view to calling Legislative attention to World Bank 2018 easy of doing business survey findings. It noted that a business contract is only as meaningful as its ability to be enforced swiftly and effectively. Regarding enforcing contracts, doing business measures the time, cost and quality of judicial processes for resolving a commercial dispute through a local first-instance court. The brief reviewed the shining experience of a few countries and drew lessons for the Nigerian states. Among the key lessons is that all states in Nigeria should implement reforms that makes it easier to enforce a contract. World Bank findings shows that Enugu has made the biggest strides on the ease of enforcing contracts by hiring additional magistrates and issuing a practice direction to resolve commercial disputes faster. Among many others, the brief recommended that the NASS judicial committees should push for innovative legislations that would help in the introduction of specialized commercial courts or divisions and fast-track procedures in small claims courts. Specialized courts tend to improve efficiency and result in faster and less costly contract enforcement.