By Yusuf O. Emiola
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A Small Claims Court is a specialized court or local tribunal created by statute with specific duties and powers. Generally, the court is designed to provide judicial determination of disputes involving small amounts of money quickly and cheaply, with or without legal representation[i].
This establishment of this court makes it easier for citizens particularly indigent persons who have monetary dispute to easily get a solution to their disputes without having to go through the rigorous, financial draining litigation process of debt recovery. This Court is essentially set up primarily in order to make justice accessible to the poor[1]
The objective of this court is to provide easy access to an informal, inexpensive and speedy resolution of simple debt recovery disputes[ii].
In the United States, the Small Claims Court have been in existence for over hundred years as the first form of Small Claims Court was established by the Cleveland Municipal Court in 1913. It is important to state that the Small Claims Court exists in every State in the United State of America[iii]
In 2017, The Presidential Enabling Business Environment Council (PEBEC), a World Bank initiative, under the office of the Vice President on the ease of doing business in Nigeria, has, as part of its reforms on ‘Enforcement of Contracts’ saw to the introduction of specialized small claims commercial courts into our Judicial System. The Lagos State Judiciary on the 23rd day of April, 2018 established the first Small Claims Court in Nigeria and was followed suit by Kano State which established her own Small Claims Court on the 24th of January, 2019.
The Small Claims Court across all state has an almost identical practice direction[iv]Hence, they will be considered as one and will be used as a reference throughout the entirety of this article.
The Small Claims Courts are established as a division of the Magistrate Court, they are governed by the practice directions issued by the Chief Judge of the creating state and they have the jurisdiction to entertain simple debt recovery claims not more than five million naira (N 5, 000,000.00)[v]only. This court is not bound by its law to strictly conduct it cases by the provision of the rules of evidence and Evidence Act. Hence, the magistrate in the interest of Justice can ask a witness to provide before him evidence which were not initially presented so as to clear up any ambiguity. With regard to who can enter appearance before the Court, the practice direction provides that the Litigants are allowed to represent themselves in their case or through their representative in the case of a corporate entity. The court has a strict adherence to time as the practice direction provides that the lifespan of each case shouldn’t exceed more than 60 days[vi]. However it’s decision will not be invalid if due to any circumstance, it exceeds 60 days[vii]. The court conducts every case on a day to day routine and is only allowed to give adjournment on the instance of a party not more than one (1). The decision of the court is enforceable just like every other decision of all the courts in our judicial system.
It is saddening that notwithstanding the beautiful contributions which this court has brought to contribute to the access to Justice in Nigeria, only 10 states (Lagos, Kano, Ogun, Edo, Ekiti, Nasarawa, Jigawa, Bayelsa, Rivers and Bauchi State) in Nigeria has established the Small Claims Court out of the 36 states and the FCT which we have in Nigeria! It is important to state that the Oyo State Small Claims Court Practice Direction has been signed into law by former Chief Judge of the state, Hon. Justice Munta Ladipo Abimbola Rtd on the 5th of December, 2022[viii]but the court is yet to begin operations.
The implications of this is that citizens in these 26 states without a Small Claims Court still have to go through the strenuous litigation process before recovering their small claims. For example , a person who intends to recover the debt of seventy thousand Naira(N70,000.00) will have to engage the service of a legal Practitioner who will then commence the debt recovery process for him/her. All these processes obviously require the payment of the professional fees to the legal practitioner (except for when the lawyer is rendering a pro bono service). The reality is that the person might end up spending close to the amount he intends to recover as the entire cost of litigation. The thought of this alone discourages a creditor from the judicial system.
On May 14, 2019, Hon. Justice Opeyemi Oke Rtd (The Chief Judge of Lagos State as he then was) while announcing the launch of the Lagos State Small Claims Court’s translation of its Practice Directions Handbook and Policy Guidelines into Yoruba, Igbo, Egun, Hausa, and Pidgin English noted that the court has handed down 530 judgments out of 850 cases that have been filed by litigants in the last 10 months of its sittings in seven magisterial districts, with more than 60% of the judgments being handed down within 60 days[ix] . Given how lengthy legal proceedings may be in our courts, these figures are noteworthy and are enough to justify the need for every state to establish its own Small Claims Court.
Indigent persons constitute a great number in the population of Nigeria[x] . There’s a need for every state to ensure that their interests are protected. One of the ways they can move out of the poverty zone is through their commercial transactions. However, debt is almost inevitable in every business transaction due to various reasons. Indigent persons can hardly afford the services of legal practitioners to recover their hard earned money from their debtors. Hence, it makes it practically impossible for them to recover their money. A situation which will continue to make them impoverished.
Access to justice is a basic principle of the rule of law. In the absence of access to justice, people are unable to have their voice heard and exercise their rights. The cost of litigation is technically a clog to access to justice.
The establishment of a Small Claims Court will also see towards the decongestion of Courts and improve the economy of every state where it is being established.
Finally, while it important for every state in Nigeria to establish its own Small Claims Court, it is also essential to sensitize the public about its existence and role in providing easy access to Justice for the citizens.
Yusuf O. Emiola
Yusuf Emiola O is a Law Graduate from Bayero University Kano.. He can be reached via his email yusufemiola01@yahoo.com and mobile number (Whatsapp inclusive); +2348171997051.
[i] Banwo & Ighodalo, Lagos State Small Cliams Court: A Milestone in Dispute Resolution. < https://www.banwo-ighodalo.com/assets/grey-matter/64abe00b18cacbe06bb3c1241d7c9de1.pdf>
[ii] Funmilayo Odude, ‘The Small Claims Court system is new in Nigeria. But now is the time to strengthen it’ < https://www.financialnigeria.com/the-small-claims-court-system-is-new-in-nigeria-but-now-is-the-time-to-strengthen-it-blog-451.html > accessed 4th June, 2023.
[iii] Alexander Domanskis, Small Claims Courts: An Overview and Recommendation, 9 U. MICH. J. L. REFORM
590 (1976). < https://repository.law.umich.edu/cgi/viewcontent.cgi?article=2216&context=mjlr > 591
[iv] Magistrates’ Court Law (Practice Directions on Small Claims) 2018 (“Practice Directions”) & Kano State Magistrate Court’s Law Practice Directions on Small Claims 2018 (“Practice Directions”)
[v] However, Bauchi State Small Claims Court Monetary Jurisdiction is pegged at 3 Million Naira
[vi] Article 12, Lagos State Magistrates’ Court Law (Practice Directions on Small Claims) 2018 (“Practice Directions”) & Article 12, Kano State Magistrate Court’s Law Practice Directions on Small Claims 2018 (“Practice Directions”) Article 12(2)) Edo State Practice Direction on Small Claims 2020.
[vii] Article 12, Lagos State Magistrates’ Court Law (Practice Directions on Small Claims) 2018 (“Practice Directions”) & Article 12, Kano State Magistrate Court’s Law Practice Directions on Small Claims 2018 (“Practice Directions”) Article 12(3) Edo State Practice Direction on Small Claims 2020.
[viii] Ifedayo Ogunyemi , ‘Oyo CJ signs into law Practice Direction for Small Claims Court’ < https://tribuneonlineng.com/oyo-cj-signs-into-law-practice-direction-for-small-claims-court/ > accessed 4th June, 2023.
[ix] Onozure Diana, ‘Lagos Small Court records 850 claims, 530 judgements in one year’ < https://punchng.com/lagos-small-courts-record-850-claims-530-judgements-in-one-year/?amp > accessed 4th June, 2023.
[x] National Bureau of Statistics < https://nigerianstat.gov.ng/news/78 > accessed 4th June, 2023.
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