The objective of this paper is to examine the drudgery and ineffectiveness inherent in the disputes settlement mechanisms (DSM) in Nigeria. Industrial or trade disputes have both costs and benefits to the three social partners and the society at large. These social partners are the government, labour and management. However, it should be noted that from experience the costs of industrial disputes have always outweighed the benefits. The authors observed that in spite of the statutory mechanisms put in place to mitigate disputes, the phenomenon has been on the increase on a consistent basis. To achieve the above objective, the authors adopted a theoretical approach. The authors advanced recommendations for the efficient and effective settlement of trade disputes in Nigeria such as alternative dispute resolution (ADR) mechanism and the use of social dialogue inter alia.